ISLAMABAD: The government has decided to seek approval for rules of ‘Benami law’ from the federal cabinet under which authorities will be able to confiscate all properties and bank accounts that would not be registered with the name of real owner.
According to the documents, people found possessing illegal properties could be jailed up to seven years, with a fine amounting to 25 per cent fair market value of the property.
Those providing wrong information or having fake bank accounts could be sentenced from minimum six months to five years in prison.
Read also: Law against ‘benami transactions’ to be operationalized soon: FBR
After the new law, the government will be able to form Federal Appellate Tribuanl to deal such matters. The federal government could also form adjudicating authority.
On Feb 5, member Inland Revenue Policy, Federal Board of Revenue (FBR) Hamid Ateeq, during a press briefing, informed that the Benami Act was passed in January, 2017, and now after finalizing of its rules and regulations, the law would become operational by February 7 or 8.
He said this law would act hard on those who register their properties, bank accounts, or vehicles on other beneficiaries’ name in order to evade taxes.
Ateeq said this was a very harsh law under which the government would confiscate all properties if they are not registered with the name of real owner.
