A Benami transaction encompasses where a property is transferred to, or held by, a person and the consideration for such property has been provided, or paid by, another person (the trustees and wife, children, brother or sister to whom property has been transferred from known resources will be excluded).
Secretary Revenue Division submitted that Benami Transaction (Prohibition) Act 2017 has been in force since February 2017. In order to implement the Act, Benami Transaction (Prohibition) Rules, 2019 have also been notified on March 11, 2019. Furthermore, authorities under the Act 2017 have been notified and officers are posted to perform their official functions.
In order to facilitate, assist and expedite the process of implementation, administration, operationalization and Benami Transactions (Prohibitation) Act, 2017 and performance of authorities effectively, the Revenue Division proposed that a committee may be constituted under section 55 of the Act, namely "Benami Information Processing Committee" which should compromise focal persons/ members of BS 19/18 from Federal Investigation Agency (FIA), Inter Services Intelligence(ISI), Intelligence Bureau (IB), State Bank of Pakistan (SBP), Federal Board of Revenue (FBR) and Securities and Exchange Commission of Pakistan (SECP). These officers will be nominated by the concerned agencies/ organisations.
The members will continue to work in their own agencies. National Coordinator Benami will be head/chairperson of Benami/ Information Processing Committee who will convene meetings of the committee as and when required.
The primary function of the committee will be to assist authorities under Benami Transaction (Prohibition) Act 2017 in gathering, analyzing and processing requisite information and further sharing it with the concerned authorities under the Act.
On March 20, 2019 Benami Transactions (Prohibition) Rules, 2019 was enforced with immediate effect and broadening of tax base (BTB) zones of Inland Revenue Service had been assigned the duty to establish cases against Benami properties and submit challan to Adjudication Authority within 120 working days.