ISLAMABAD: Federal Board of Revenue (FBR) Member Inland Revenue Policy Rehmatullah Khan Wazir has advised the benami accountholders to legalize their money or stern action will be taken against them.
In an exclusive interview with Customs Today, the member inland revenue said that the FBR was going to launch a special campaign against the benami accountholders under the umbrella of a new benami account law, which has been enforced.
If anyone found involved in the crime, he could face up to seven years imprisonment and a huge amount of fine. There will be no concession for the suspects. He said a new Adjudication Authority is being established under this law. An officer of the chief commissioner or secretary level will be the head of the authority to adjudicate the cases.
He said a right of appeal also has been given in the law and that anyone dissatisfied with the decision of the Adjudication Department has the right to appeal in the appellate tribunal and appeal. The orders of the tribunal can be challenged in a high court, said adding that special courts will also be set up for the trial of persons committing an offence punishable under the new law.
He said, that if properties are registered under the names of other family members then they would also be held responsible. He observed that there are hundreds of thousands of benami bank accounts in the country. He explained that benami assets are those that are not in the owner’s name in order to conceal the real ownership. Benami transactions are one of the sources of circulation and investment of black money. The property held benami has a definite and beneficial owner and this law attempts to identify such real and rightful owners. He further said on the proposal of FBR, a section regarding the whistleblower (third party information) has been added in the benami laws and the role of whistleblower will be very important.
He said that the FBR is considering rewarding whistle-blowers for credible information leading to detection of benami properties or transactions. However, he said that a whistle-blower does not deserve reward if information is provided without any evidence, the information is already in public record or appeal against confiscation of benami property has not attained finality. “We are making rules for whistle-blowers, he said, adding that benami accounts are cause of concern for the tax authorities and that the transactions have long been used in criminal proceeds. He added that tax evasion and terror-financing are the main crimes perpetrated through benami assets. The law aims at stopping the use of black money, especially in the real estate sector.
It also targets transactions that are made in names other than those of the owners, to hide the incidence of tax evasion and black money. He said, it is Federal Board of Revenue responsibility to make sure implementation on Benami laws. He disclosed that we are developing a mechanism regarding the implementation on benami laws. We are very actively working on it.
He said: “We will approach the Supreme Court and the high court concerned for early and speedy hearings of the pending cases. We will request the courts that technical persons shall be appointed to prosecute the cases.” He said that the FBR’s policy to bring the real estate sector into the tax net has been successful and we have achieved more than 80 percent growth in terms of revenue.
He said that under the guidance of Finance minister Ishaq Dar and Minister of State for Revenue Haroon Akhtar, Chairman FBR Dr. Irshad and his all the teams are working hard for achieving the revenue collection targets. Beside these efforts we are taking some initiatives on policy level which will be not only for helpful to increase the revenue but this will also important for widening the tax net base. He said people should pay the taxes, if they love Pakistan. This is the only way, our country can move forward on the road of development. But unfortunately there is no tax culture in Pakistan.