Business & Economy

FBR seeks information of Pakistanis who sought UAE Iqama under RBI schemes

ISLAMABAD    –         Federal Board of Revenue (FBR) has requested Ministry of Finance of United Arab Emirates (UAE) to provide the information of all those Pakistanis who have sought UAE Iqama under Residence by Investment (RBI) schemes.

FBR in its letter to UAE’s Ministry of Finance has stated that such delinquent Pakistan tax resident persons have not only siphoned off funds out of Pakistan, parked them in UAE but also effectively circumvented the OECD-sponsored CRS exchange of bank and financial account information. UAE’s Ministry of Finance has not responded to all earlier written requests of FBR in this regard so far.

The FBR letter further states that the automatic exchange of information framework, in essence, was conceived and implemented to put up a well-coordinated and concerted global fight against organized tax theft and to inject transparency in the international taxes system. In the Pakistan-UAE meeting on EOI held in Dubai on October 9-10, 2019, a commitment was made to come up with a detailed formal response. However, not only that no reply whatsoever has been received from UAE, but also that a few subsequent rejoinders issued by FBR went unanswered, even unacknowledged. The UAE’s persistent silence on FBR’s efforts to develop a robust framework for sharing of structured information of Pakistani Iqama-holders has not been productive so far. The best inter-nation relationships are mutually responsive, symbiotic and empathetic, and are the product of superior diplomatic wisdom, the letter stated.

FBR has requested UAE to provide a well laid out roadmap on UAE Iqama holders’ information. Alternatively, Pakistan would be constrined to seriously consider rolling out appropriate measures, including termination of Pakistan-UAE avoidance of Double Taxation Agreement at an early date.

 

Meanwhile, in order to prevent leakage of revenue, under-reporting of production and sales, and to ensure proper payment of FED and Sales Tax on the manufacture and sale of specified goods/ products, the FBR has decided to implement a Track and Trace System for specified goods/ products i.e. Cement, Sugar, Fertilizer and Beverages  imported into or manufactured in Pakistan.

Project Office of Federal Board of Revenue (FBR), confirmed that they have finalized all bidding documents relating to issuance of license of Electronic Monitoring of Production/ Sales and Track and Trace System of the four major sectors Sugar, Cement, Fertilizer and Beverages, the Press Release stated. Instructions for Licensing (IFL) and related documents will be published in January, 2020 after consulting all major sectors/ Stakeholders. In order to arrive at the best possible solution, FBR plans to hold meetings with all stakeholders for their input, suggestions and recommendations. First meeting in this regard was held on 2nd December, 2019 with Cement manufactures. Second meeting with the Fertilizer manufacturers was held on 5th December, 2019 and third meeting is scheduled on 12th December, 2019.

 

Article source: https://nation.com.pk/10-Dec-2019/fbr-seeks-information-of-pakistanis-who-sought-uae-iqama-under-rbi-schemes

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