Latest news with #ShahidJami
Business Recorder
3 days ago
- Business
- Business Recorder
Crackdown underway: Pakistan's FIA identifies investors with AED 2m real estate holdings in UAE
ISLAMABAD: The resident Pakistanis who have made a qualifying investment of at least 2.0 million AED in real estate in Dubai/ UAE have been identified from the immigration data maintained by the FIA at the airports, and a major crackdown under the income tax laws and anti-money laundering regulations is under way. As per sources, thousands of Pakistani residents are holding 10-year golden visas (Residence/ Iqama) of the UAE issued due to investment of at least AED 2.0 million. These Pakistanis use the Golden Residence card at the Pakistan immigration counters while travelling to the UAE, which is scanned and saved in the FIA Immigration portal. The residence card (Iqama) contains the following information: Pakistani passport number and name; Profession – Property owner; Sponsor – Self Sponsor; and Issue date/ Expiry date – 10 years. 'Dubai Unlocked': Pakistanis own properties worth $11bn in emirate city, report says From the above data, the property investor can easily be identified and it can be ascertained whether investment in UAE property has been declared in their wealth statement or not. As per sources, the majority of resident Pakistanis have neither declared this investment in UAE properties in their wealth statements nor the rental income/ capital gain in shown in the return of total income. Similarly, CVT on foreign assets is also not paid. When contacted for comments, Shahid Jami, tax consultant, explained that though there is a tax treaty between Pakistan and UAE, which includes an Article for exchange of information but UAE has reportedly not provided information to Pakistani tax authorities. Similarly, under the Automatic Exchange of Information treaty, financial data is not provided as bank accounts are opened in UAE by using the residence permit as an identity document instead of a Pakistani passport. Jami added that due to the aforementioned factors, there is a tendency not to declare the investment made. Similarly, for investment, the use of informal remittances is also available easily at an affordable cost. He stated that, therefore, those taxpayers who declared foreign assets under the amnesty scheme now feel that they have made a mistake, as those who did not declare are outside the radar without any fear of being caught. Jami explained that tax laws have become very stringent, and in respect of foreign assets, the erstwhile limitation of five years is not applicable. He advised the taxpayers not to suppress foreign assets and not to violate foreign exchange regulations. When asked how to make lawful foreign investment and legitimate tax-free earnings, he stated that tax planning schemes within the framework of law are available, and very few compliant taxpayers are already availing those. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Crackdown underway: FIA identifies investors with AED 2m real estate holdings in UAE
ISLAMABAD: The resident Pakistanis who have made a qualifying investment of at least 2.0 million AED in real estate in Dubai/ UAE have been identified from the immigration data maintained by the FIA at the airports, and a major crackdown under the income tax laws and anti-money laundering regulations is under way. As per sources, thousands of Pakistani residents are holding 10-year golden visas (Residence/ Iqama) of the UAE issued due to investment of at least AED 2.0 million. These Pakistanis use the Golden Residence card at the Pakistan immigration counters while travelling to the UAE, which is scanned and saved in the FIA Immigration portal. The residence card (Iqama) contains the following information: Pakistani passport number and name; Profession – Property owner; Sponsor – Self Sponsor; and Issue date/ Expiry date – 10 years. 'Dubai Unlocked': Pakistanis own properties worth $11bn in emirate city, report says From the above data, the property investor can easily be identified and it can be ascertained whether investment in UAE property has been declared in their wealth statement or not. As per sources, the majority of resident Pakistanis have neither declared this investment in UAE properties in their wealth statements nor the rental income/ capital gain in shown in the return of total income. Similarly, CVT on foreign assets is also not paid. When contacted for comments, Shahid Jami, tax consultant, explained that though there is a tax treaty between Pakistan and UAE, which includes an Article for exchange of information but UAE has reportedly not provided information to Pakistani tax authorities. Similarly, under the Automatic Exchange of Information treaty, financial data is not provided as bank accounts are opened in UAE by using the residence permit as an identity document instead of a Pakistani passport. Jami added that due to the aforementioned factors, there is a tendency not to declare the investment made. Similarly, for investment, the use of informal remittances is also available easily at an affordable cost. He stated that, therefore, those taxpayers who declared foreign assets under the amnesty scheme now feel that they have made a mistake, as those who did not declare are outside the radar without any fear of being caught. Jami explained that tax laws have become very stringent, and in respect of foreign assets, the erstwhile limitation of five years is not applicable. He advised the taxpayers not to suppress foreign assets and not to violate foreign exchange regulations. When asked how to make lawful foreign investment and legitimate tax-free earnings, he stated that tax planning schemes within the framework of law are available, and very few compliant taxpayers are already availing those. Copyright Business Recorder, 2025
Business Recorder
23-06-2025
- Business
- Business Recorder
Finance bill contains drafting errors: experts
ISLAMABAD: Finance Bill (2025-26) contains drafting errors and contradictions amongst taxing statues including Income Tax Ordinance, 2001, Sales Tax Act, 1990 and Federal Excise Act, 2005. Tax experts told Business Recorder that policymaker has been harmonizing the parallel provisions contained in the Income Tax Ordinance, 2001, Sales Tax Act, 1990 and Federal Excise Act, 2005 as all these are administered by the same officer of the field formations. But contrary to the established policy and past practice through Finance Bill 2025 certain contradictory amendments are proposed. The tax experts have pointed out that earlier all the three taxing statutes contained a provision that after issuance of show cause notice the assessment order was to be passed within a specified period and this provision was interpreted as mandatory in various judgments of the Supreme Court. Budget FY25-26: Finance bill still being discussed, says FBR However, through Finance Bill the provisions contained in Section 122(9) of the Income Tax Ordinance, 2001 is proposed to be omitted meaning thereby that there would be no time limit for passing the assessment order after issuance of show cause notice and practically the same can be passed within five years of the end of the Financial Year in which the relevant return of total income was filed. Contrary to this, the identical provision contained in Section 11G of the Sales Tax Act, 1990 and sections of the Federal Excise Act would be continued. This differential treatment in the taxing statute administered by the same assessing officer does not sound to reason and is contrary to the norms of justice and fair play. When contacted, Shahid Jami, a Lahore based tax lawyer, explained that though Anomalies Committees have been constituted by the Federal Government but such fine points are not likely to be addressed by them as this may not be considered anomaly by them. He pointed out a drafting error according to which sub-section (1) of Section 46 of the Sales Tax Act, 1990 pertaining to appeal to the Appellate Tribunal is intended to be substituted and the proposed amendment provide appeal only against the appeal order passed by the Commissioner (Appeals) and contrary to the earlier provision existing for decades no appeal has been provided against the order passed by the Zonal Commissioner and FBR under the Act or Rules. Jami stated that the wording appears to be erroneous in drafting and not intentional change in policy as the words 'under this Act and Rule made there under' exist in the proposed amendment but the authorities of Zonal Commissioner and FBR are missing. It is imperative that such drafting errors and contradictions are removed from the Finance Bill for uniformity of taxing statues and to protect the rights of the taxpayers. Copyright Business Recorder, 2025
Business Recorder
29-05-2025
- Business
- Business Recorder
FBR suspends senior tax auditor
ISLAMABAD: On complaints of harassment, the Federal Board of Revenue has suspended a Senior Auditor (BS-17) who was posted under Section 40B of the Sales Tax Act 1990 at the premises of a feed mill to monitor the supply of taxable goods. As per the FBR notification issued under Rule 5(1) of the Civil Servants (Efficiency and Discipline) Rules, 2020, the Senior Auditor of the Regional Tax Office, Multan, has been suspended for a period of 120 days or until further orders, whichever is earlier. When contacted for comments, Shahid Jami, tax advisor of the feed manufacturers, lauded the prompt action by the chairman FBR, who has assured the industry representative that no instance of any harassment reported to the FBR will be tolerated in the future. FBR begins action against companies However, Jami urged the FBR that staff posted at the factories be provided logistic support and the requisite facilities so that posting there for 30 days or more is not burdensome for the compliant taxpayers. He further urged that where monitoring of taxable supplies matches with the declared version and there is a progressive trend of voluntary compliance, such measures be avoided in future for at least two years or until there is some definite information about underreporting, he added. Copyright Business Recorder, 2025
