Pakistan makes an appeal to the Malaysian government

Pakistan makes an appeal to the Malaysian government

ISLAMABAD - Pakistan government makes an appeal to the Malaysian government over the taxation issues and Pakistanis wealth held illegal in the Malaysian capital.

Pakistan has formally requested the Malaysian tax authorities to assist in identifying Pakistanis who have taken their illegal funds out of the country and invested in Malaysia’s Residence by Investment (RBI) schemes and are now hiding behind RBI-based residential status, Profit has reported.

This development comes after FBR asked the United Arab Emirates for details of Pakistanis possessing an Iqama (work permit) in UAE.

Dr Muhammad Ashfaq Ahmed, Director General (International Taxes), Federal Board of Revenue (FBR), has written a letter to Shaharrudy Othman, Director Department of International Taxation Inland Revenue, Board of Malaysia.

The DG International Taxes FBR informed Malaysian tax authorities that Pakistan has absolutely no problem with the Pakistani nationals investing and doing business in Malaysia legally with lawfully remitted funds.

“However, we are gravely concerned with the persons who may have siphoned off funds illegally from Pakistan, parked them in Malaysia and now hiding behind RBI-based status to circumvent reporting under the CRS. This is, of course, not a desired situation for either of the nations – particularly Pakistan,” said Dr Ahmed.

Pakistan and Malaysia signed the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (ADTA) on May 29, 1982, which came into effect on April 12, 1983.