The Benami Transactions (Prohibition) Zones of Federal Board of Revenue (FBR) have so far made 50 cases against the owners of benami properties and sent them notices for holding benami assets/income across the country. The FBR has so far not referred cases with the collected evidence to the adjudication authority.
Sources said that the FBR has started selecting cases on the basis of credible information and the board is expected to frame around 50 benami cases on monthly basis. In this regard, Benami Transactions (Prohibition) Zones issued orders of provisional attachment of immovable properties under the Benami Transactions (Prohibition) Act 2017.
The cases would be referred to the adjudicating authority under Benami Transactions (Prohibition) Act-2017 after completion of the due process. Following the approval granted by the FBR, the Benami Zones of Adjudicating Authority established under Benami Transactions (Prohibition) Act 2017 has issued notices for the provisional attachment of Benami properties in different cities under sub-section (3) of section 22 of the Act for Prohibition for holding properties in Benami. According to Ashfaq Tola, Member Tax Reform Commission, it is pertinent to note here that property situated in foreign countries aren't specifically included, nor are they excluded within the ambit of this Act. However, in any case, even if the intention of the legislature is to confiscate the benami properties held abroad, this cannot be done in the absence of bilateral agreements pertaining to confiscation of the same abroad.
According to Benami Transactions (Prohibition) Act, 1988 of India, the definition of Benami transactions is similar with the one being used in Pakistan. However, the Indian definition has two additional exceptions i.e. when a property is being held by a Karta, or a member of a Hindu undivided family, and that the property is held for his or his family members benefit with payment for such property being made out of the known sources of the Hindu undivided family. Other exception is when any property is involved in part performance (for which the stamp duty is paid and the contract is registered), for which consideration is provided and the transferee has the property in possession but the transferor still holds the right to ownership, Ashfaq Tola added.
