ISLAMABAD – Pakistan government makes an appeal to the Malaysian governmentover the taxation issues and Pakistanis wealth held illegal in theMalaysian capital.

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

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

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

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

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

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