FBR to dispatch tax notices to 600-700 people owening properties in UK

[Shahzaz ud din]

FBR to dispatch tax notices to 600-700 people owning properties in UK
The identified individuals are said to be receiving rental income from owning expensive properties in the UK and failed to declare these assets under the tax amnesty scheme that lapsed on 31st July 2018

By
Monitoring Report
-
August 4, 2018
0
68

ISLAMABAD: The Federal Board of Revenue (FBR) will send tax notices to 600-700 people receiving rental income from owning expensive properties in the UK after failing to declare these assets under the tax amnesty scheme.

FBR received the data from their counterparts in the United Kingdom (UK), which includes details of Pakistani’s owning properties and earning rental incomes alongside their telephone numbers and addresses, reported The News.

The information has been obtained under an agreement signed with the Organisation of Economic Cooperation and Development (OECD), as the exchange of information portal became live.

This would allow the FBR to find tax evaders and fine them in a big manner.

Officials from the tax regulator said since the incoming PTI government is targeting a rise in tax collection from Rs4 trillion to Rs8 trillion hence preparations were being made to move ahead with the policy of name and shame for tax evaders.

However, they added it would be contingent on the incoming PTI government how much independence does it grant to the tax collection machinery.

And every relevant Large Taxpayers Units (LTUs) and Regional Taxpayers Offices (RTOs) have been issued directives to dispatch tax notices to 600-700 individuals living in Lahore, Islamabad and Karachi and other parts of Pakistan and unearth whether they were tax filers or not.

Sources said, in case they were found to be non-filers, then appropriate action would be taken against them under the law.

Also, the official shared the FBR had established a centralized system to track progress on the tax notices sent in order to eliminate an element of harassment.

The official said information of hundreds of Pakistani nationals who own immovable properties in the UK has been received.

As per the confidentiality clauses, the FBR isn’t permitted to share the exact number and details retrieved from the UK tax authorities under the OECD agreement.

The sources added in case the confidentiality clause was broken, then the tax regulator would be unable to receive any information in the future, hence they have ensured foolproof arrangements to safeguard against any leaks.

And the FBR has setup a standardized software for fetching the first number of thousands of cases of Pakistani’s via automatic exchange portal from the OECD to retrieve financial data of assets and bank accounts starting September 1st, 2018.

 

[Safriz]

These notices will be illegal Both UK and Pakistan have taxation agreements to prevent dual citizens or investors from being taxed simultaneously in both countries .
If UK is collecting tax from a Pakistani citizen investing in UK on his investment in UK then Pakistan cannot claim tax on his income from the same investment.
Likewise if Pakistan is taxing a property in Pakistan belonging to a British Pakistani or a Pakistani living in UK then British government won't put tax on his income from Pakistan as its already been taxed by Pakistan.
FBR should abide by these international agreements.

 

[Sugarcane]

First there should be inquiry against FBR Dhakans to punish them for loosing revenue of PKR 3.2 Trillion every years, the corruption of FBR is more than all others combined.

 

[I.R.A]

These notices will be illegal Both UK and Pakistan have taxation agreements to prevent dual citizens or investors from being taxed simultaneously in both countries .
If UK is collecting tax from a Pakistani citizen investing in UK on his investment in UK then Pakistan cannot claim tax on his income from the same investment.
Likewise if Pakistan is taxing a property in Pakistan belonging to a British Pakistani or a Pakistani living in UK then British government won't put tax on his income from Pakistan as its already been taxed by Pakistan.
FBR should abide by these international agreements.

If the taxpayer is resident then his income from every source is taxable in Pakistan. The geographical spread of source of income doesn't matter. Apparently all the people who are to be served notices are resident per Pakistani tax laws and are receiving rental income from overseas, those properties should have been disclosed in their wealth statements.

 

[Chakar The Great]

FBR needs revamping. Not sure if thats going to work.

 

[Shahzaz ud din]

FBR receives startling information about UK properties of over 600 Pakistanis
4 Aug, 2018

ISLAMABAD - Federal Board of Revenue (FBR) has received startling revelations about the properties held in UK by more than 600 Pakistanis.

FBR has decided to dispatch tax notices to 600-700 individuals having rental income from possessing expensive properties in the UK in a bid to proceed against potential tax evaders, The News has reported.

READ MORE: Switzerlands offer to return $200 billion of Pakistani account holders, FBR clarifies report
The UK tax authorities have shared full details of Pakistanis owning properties and earning rental incomes with the FBR as they provided their addresses with telephone numbers. “We have worked out details and will start sending out tax notices very soon. In this format of information, no one can hide himself or herself from the radar of FBR ,” top FBR officials confided to The News here on Friday.

The FBR has obtained information from the UK Tax authorities with the assistance of Organisation of Economic Cooperation and Development (OECD) as exchange of information became operational and now the FBR was all set to move the long arm of law for penalising the tax evaders in a big way.

READ MORE: FBR lauches probe into UK assets of 500 rich Pakistanis
“The incoming PTI led government wants to increase tax collection from Rs 4,000 bn to Rs 8,000 billion so the FBR is also making preparations to go ahead with the policy of name and shame for tax evaders but it will also depend that how much the government provides autonomy to the tax collection machinery,” said the FBR officials.

All concerned Large Taxpayers Units (LTUs) and Regional Taxpayers Offices (RTOs) have been instructed to send tax notices to these 600 to 700 individuals mainly belonging to Karachi, Lahore, Islamabad and other parts of the country to ascertain whether they were return filers or not. If they will be found non-filers, then the law of the land will move against them, said the sources.

READ MORE: Secret information of properties and income of Pakistanis in Dubai received by FBR: Sources
The official said that the FBR developed centralised system to monitor progress on these dispatched tax notices in a bid to remove the element of harassment. “We will track down progress on these tax notices while sitting at our offices in Islamabad,” said the official sources.

“We have obtained information of hundreds of Pakistanis owning immoveable properties in the UK,” said the official. Under confidentiality clauses, the FBR cannot disclose the exact number and details obtained from the UK Tax authorities under the OECD mechanism. And, the sources said if the confidentiality is breached, then the FBR would not be able to get any future information so they have ensured foolproof arrangements to protect against any leaks.

 

[maximuswarrior]

Send them a notice and also heavy fines.

Every country has strict rules regarding the declaration of foreign owned assets. This is nothing short of daylight robbery and tax evasion.

 

[Baghial]

FBR to dispatch tax notices to 600-700 people owning properties in UK
The identified individuals are said to be receiving rental income from owning expensive properties in the UK and failed to declare these assets under the tax amnesty scheme that lapsed on 31st July 2018

By
Monitoring Report
-
August 4, 2018
0
68

ISLAMABAD: The Federal Board of Revenue (FBR) will send tax notices to 600-700 people receiving rental income from owning expensive properties in the UK after failing to declare these assets under the tax amnesty scheme.

FBR received the data from their counterparts in the United Kingdom (UK), which includes details of Pakistani’s owning properties and earning rental incomes alongside their telephone numbers and addresses, reported The News.

The information has been obtained under an agreement signed with the Organisation of Economic Cooperation and Development (OECD), as the exchange of information portal became live.

This would allow the FBR to find tax evaders and fine them in a big manner.

Officials from the tax regulator said since the incoming PTI government is targeting a rise in tax collection from Rs4 trillion to Rs8 trillion hence preparations were being made to move ahead with the policy of name and shame for tax evaders.

However, they added it would be contingent on the incoming PTI government how much independence does it grant to the tax collection machinery.

And every relevant Large Taxpayers Units (LTUs) and Regional Taxpayers Offices (RTOs) have been issued directives to dispatch tax notices to 600-700 individuals living in Lahore, Islamabad and Karachi and other parts of Pakistan and unearth whether they were tax filers or not.

Sources said, in case they were found to be non-filers, then appropriate action would be taken against them under the law.

Also, the official shared the FBR had established a centralized system to track progress on the tax notices sent in order to eliminate an element of harassment.

The official said information of hundreds of Pakistani nationals who own immovable properties in the UK has been received.

As per the confidentiality clauses, the FBR isn’t permitted to share the exact number and details retrieved from the UK tax authorities under the OECD agreement.

The sources added in case the confidentiality clause was broken, then the tax regulator would be unable to receive any information in the future, hence they have ensured foolproof arrangements to safeguard against any leaks.

And the FBR has setup a standardized software for fetching the first number of thousands of cases of Pakistani’s via automatic exchange portal from the OECD to retrieve financial data of assets and bank accounts starting September 1st, 2018.

Fcccckng bureau for rich..FBR

 

[maximuswarrior]

FBR requires heavy changes from top to bottom, but which institute doesn't in Pakistan.

This is a golden opportunity for the new government to take all the bad apples to task. Time to reform, legislate and bring justice to the common man. Don't let this opportunity slip. Rule with an iron fist. Zero compromise and zero leniency. A ruthless approach is required.

 

[I.R.A]

The official said that the FBR developed centralised system to monitor progress on these dispatched tax notices in a bid to remove the element of harassment. “We will track down progress on these tax notices while sitting at our offices in Islamabad,” said the official sources.

As long as it remains within the same department, you cannot remove the element of harassment. This is no rocket science, the only first neutral forum available to the tax payer is Appellate Tribunal, but by the time appeal reaches that forum the tax payers end up paying money which may or may not necessarily should have been paid. There should be totally separate 24x7 independent neutral judicial institute that should hear the tax cases, decide and dispose off ..... no appeals to be entertained in any other court or fora.

 

[Dark-Destroyer]

These notices will be illegal Both UK and Pakistan have taxation agreements to prevent dual citizens or investors from being taxed simultaneously in both countries .
If UK is collecting tax from a Pakistani citizen investing in UK on his investment in UK then Pakistan cannot claim tax on his income from the same investment.
Likewise if Pakistan is taxing a property in Pakistan belonging to a British Pakistani or a Pakistani living in UK then British government won't put tax on his income from Pakistan as its already been taxed by Pakistan.
FBR should abide by these international agreements.

Why is it these Pakistanis have not declared their assets

 

[Trango Towers]

If the taxpayer is resident then his income from every source is taxable in Pakistan. The geographical spread of source of income doesn't matter. Apparently all the people who are to be served notices are resident per Pakistani tax laws and are receiving rental income from overseas, those properties should have been disclosed in their wealth statements.

Property assets should be disclosed. Under double tax treaty he/she cannot be taxed twice

 

[I.R.A]

Property assets should be disclosed.

The disclosure of those assets would mean disclosing of sources ...... how those assets were bought, where the money came from.

Under double tax treaty he/she cannot be taxed twice

Depends where these individuals are living and if they are resident per Pakistani tax laws. And if they have ever filed their returns or notified the commissioner inland revenue before leaving Pakistan. Double tax treaty is mutual.

 

[Trango Towers]

The disclosure of those assets would mean disclosing of sources ...... how those assets were bought, where the money came from.



Depends where these individuals are living and if they are resident per Pakistani tax laws. And if they have ever filed their returns or notified the commissioner inland revenue before leaving Pakistan. Double tax treaty is mutual.

Source disclosure is the biggest proble.

 

[I.R.A]

Source disclosure is the biggest proble.

That's why its necessary that you keep your last 5 year returns straight and complete. Anything you owe to anyone or any receivable just put it there, any outflow and inflow .... keep your record straight.