The Federal Board of Revenue (FBR) has started serving show-cause notices under Benami Transaction (Prohibition), Act, 2017.
According to sources, the Regional Tax Office (RTO)-II, Karachi has issued seven show-cause notices while Lahore and Islamabad tax offices have served two notices and one under the Act, respectively.
Dispelling the impression that tax departments has started taking action only against Benami bank accounts under recently promulgated law ‘Benami Transaction (Prohibition), Act, 2017,” sources said that the Federal Board of Revenue (FBR) had issued directives to its field formation not to serve show-cause notices to the accountholders of Benami bank accounts in case of insufficient balance.
Therefore, the tax departments are issuing such notices to the owners of Benami properties and to the Benami shareholders in order to expedite the legal process that will lead to the confiscation under section 3 & 4 of the Act.
Moreover, they said that through these notices, the tax departments had given hearing opportunity to the Benamidar to clarify their position and submit documented evidences about the ownership of the properties and shares to avoid confiscation.
Replying to a question, sources said that proceedings against the Benamidar under the Act would take months or may be year because no notification to constitute adjudication authority has been issued so far.
published in brecorder.com
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