Benami Act to be applicable from Feb 2017: FBR.

Byline: Imran Ali Kundi

ISLAMABAD -- The Federal Board of Revenue (FBR) on Wednesday said that Benami Transactions Prohibition Act 2017 would be applicable from February 2017 when the government had passed it.

The federal government on Monday notified the Benami Transactions Prohibition Rules that would empower the FBR to confiscate assets held in other than owners' names. The term 'Benami' refers to the practice of holding property/assets in the name of one person for the benefit of another. However, benami is often aimed at concealing ownership of assets acquired through illegal means, defrauding creditors, and/or evading payments of government fees, charges or taxes.

Duration of punishment will be from 1 to 7 years under the act

The Act would be applicable when it was signed by President, February 2017, said Dr Hamid Ateeq Sarwar Member (Inland Revenue Policy) while addressing a press conference along with Muhammad Javed Ghani Member (Customs-Policy) and other senior officials. He further said that federal government would confiscate whole properties, expensive vehicles and bank accounts registered with fictitious individuals. Sarwar said that FBR would act as prosecuting agency, which would make cases regarding Benami transactions. Giving the details, he said that commissioner of income tax will exercise the powers and perform the function of authority. Initially, the officers designated will investigate the available data to identify benami assets. The FBR's officer will issue a notice for attachment of the benami assets for a period of 90 days. During this period, the tax officer will investigate the case to make an FIR following identification of benami property or bank accounts etc. The FIR will then be referred to the adjudicating authority.

The adjudicating authority would make the decision whether...