Home »Taxation » Pakistan » Tax treaty: UAE not cooperating: FBR

The Federal Board of Revenue (FBR) Tuesday informed a parliamentary panel that Pakistan has a bilateral tax treaty with United Arab Emirates (UAE), but despite repeated requests since 2011, they are not cooperating. Chairman FBR Tariq Pasha informed the sub-committee of National Assembly Standing Committee on Finance that requests for a meeting with the UAE ambassador to Pakistan was also not paid any heed.

The FBR chairman also claimed that his organization also approached federal cabinet and the Foreign Office in this regard. "There seems to be nothing we can do as we are at the receiving end," he added. MNA Asad Umar asked about the laws that were invoked to get response from the UAE over the Panama Papers case.

The committee was informed by the official of National Accountability Bureau (NAB) that anti-corruption laws were used to obtain the relevant information from the UAE. The official also said that only anti-corruption laws and money laundering laws can be employed to determine the names of those who had bought properties in the UAE.

The committee also directed the relevant agencies to identify loopholes in their systems and laws that facilitate flight of money from the country. The sub-committee of National Assembly Standing Committee on Finance was informed that despite bilateral and international treaties authorities in the UAE were not responding to the requests by Pakistan about details of Pakistanis who have bought properties there.

The Sub-committee headed by Dr Shezra Mansab Ali was formed to look into the matters pertaining to investment in real estate sector of the United Arab Emirates (UAE) by Pakistani citizens. The other members of the sub-committee are Asad Umar of the PTI and Isphanyar M Bhandara of PML-N.

Dr Shezra said the current wave of investments by Pakistanis in the UAE started in 2006, and it continues despite concerns by the respective governments. She also said the main issue in this regard was to devise a strategy for the government to cap the flight of capital for purchase of properties abroad.

During the committee proceedings, Asad Umar highlighted that the information is released by the Dubai Land Authority - possibly for their marketing purpose after every six months showing the investments made by citizens of different countries. "There was a media report that claimed Pakistanis have invested around $8 billion in Dubai in the past four years," he added.

The committee was informed by the official of SBP that according to Pakistani law permissions for investments abroad up to $5 million is obtained by the SBP, whereas approval for amount higher than this is granted by the Economic Coordination Committee (ECC) of the Cabinet. At the same time, the sub-committee was informed by the SBP official that no permission has been 'ever' for investments in real estate abroad.

The sub-committee finally decided to issue directives to all relevant agencies including the FIA, NAB and SBP, FBR, to identify the loopholes in their laws - which facilitate money laundering. The sub-committee decided to invite officials of Law Ministry and Foreign Office to know if any pressure can be exerted on the UAE to ascertain the names of Pakistanis who have bought properties in the said country.



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