ISLAMABAD: Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan has said that Benami Transaction Prohibition Bill 2016 has been brought before the Senate Standing Committee on Finance and Revenue for further refinement.
While responding to questions and observations of the members of the committee here, Nisar explained different clauses and sections of the bill. He asserted that property held in benami was the cause of concern for the tax authorities. The past practice and experience showed that benami transactions had often been resorted for furthering illegal or questionable objectives, including the evasion and taxes.
He observed that the assets, which were taken through illegally-earned money, couldn’t be used for tax evasion or something more serious like financing terrorism. There is realization that Benami Transaction Prohibition Act is in practice in other countries of the region including neighboring country, whereas Pakistan is at least the decades behind.
He said that Bill had been introduced to deal with the problem of tax evasion and black money especially in the real estate sector, and to target transactions that were carried out people’s names. One of the major objectives of the bill is to put an end to benanti transactions, and to empower the government to recover such property. Defining benami transaction, the legislature intends to prohibit all persons from into such transactions.
FBR chairman went on saying that the Bill further sought to ensure that if any person enters ink 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, would have to suffer rigorous punishment.
The bill seeks to strengthen the law through empowering .provisions prohibiting hold property as benam and restrict the right to recover or transfer property held in bond. The bill further seeks to establish Adjudicating authority, setup Appellate Tribunal specify the penalty for entering into a benami transaction and provision for confiscation of benami properties.
Due course of clause wise clause reading of the bill, Senators raised a number of questions and objections on the motives as well as intensity of prescribed punishments for the people involved in benami transactions or properties, however, Nisar Muhammad Khan, Dr. Muhammad Iqbal and Rehmatullah Wazir aptly addressed the points raised by the members.
