ISLAMABAD: The National Assembly has passed Benami Transaction (Prohibition) Bill, 2016 and Companies (Appointment of Legal Advisers).
The bills were moved by Parliamentary Secretary for Finance Rana Muhammad Afzal Khan in the Lower House of the Parliament, which were passed unanimously.
According to Benami Transaction (Prohibition) Bill, 2016, “the assets, which are taken through illegally-earned money, cannot be used for tax evasion or something more serious like financing terrorism. This law will deal with the problem of tax evasion and black money especially in the real estate sector, and to target transactions that are carried out in other people’s names. One of the major objectives of the proposed bill is to put an end to benami transactions and to empower the government to recover such property. By defining benami transaction, the legislature intends to prohibit all persons from entering into such transactions. The bill further seeks to ensure that if any person enters into benami transaction in order to evade tax or avoid payment to creditors, the ultimate beneficial owner and persons who abet or induce any person to undertake such transaction will suffer rigorous punishment.”
The bill seeks to strengthen the law through empowering provisions prohibiting holding property as benami and restrict the right to recover or transfer property held in benami. The bill further seeks to establish Adjudicating Authority, setup Appellate Tribunal and specify the penalty for entering into a benami transaction and provision for confiscation of benami properties.
The Companies (Appointment of Legal Advisers) (Amendment) Bill, 2016 was passed to ensure compliance and better regulation of the law.
