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 FBR clarifies Benami property means any Benami transaction

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Our Special Correspondent
LAHORE: After Implementation of Benami Transactions (Prohibition)
Rules, 2019.The Federal Board of Revenue (FBR) has clarified that a
Benami property means any property which is subject matter of Benami
transaction and also includes proceeds from such property.

Benami transaction encompasses where a property is transferred to, or
is 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);A transaction or arrangement in
respect of a property carried out or made in a fictitious name; or a
transaction or arrangement in respect of a property where the owner of
the property is not aware of, or denies knowledge of, such ownership;
or a transaction or arrangement in respect of a property where the
person providing the consideration is not traceable or is fictitious.

The potential types of Benami properties include plots, houses,
shopping plazas, shops, housing schemes, bank accounts, vehicles,
business shares, jewellery, foreign currency, legal documents and
intangible properties having financial value.

Benami Transactions (Prohibition) Rules, 2019have been enforced with
immediate effect and BTB zones of Inland Revenue Service have been
assigned the duty to establish cases against Benami properties and
submit challan to Adjudication Authority within 120 working days.
During this period, sale, purchase and transfer of property will be
banned till further orders. Appeal against the decision of
Adjudication Authority can be lodged with the Federal Tribunal and
after the decision of the Federal Tribunal such properties will be
confiscated and sold out by the Federal Government. Furthermore, if
the crime of Benami transactionis proved, criminalproceedings will be
initiated against accused persons andwhere proven guilty,rigorous
imprisonment of one year to seven years can be awarded to such
persons. Similarly, persons providing false and baseless information
can also be sentenced to rigorous imprisonmentof six months to five
years.

In this regard, the whistleblowers will be entitled to a cash reward
for providing credible information leading to detection of Benami
property or transaction. If property isworth Rs.2,000,000 or less,
five percent of price of Benami property will be given to informer. If
property’s worth is more than Rs.2,000,000 or 5,000,000, four percent
of Benami property will be given to informer and where the value of
property will be more than Rs.5,000,000, three percent of Benami
property will be given to informer.

It is clarified that this reward will be given only if the information
provided is of value and FBR doesn’t already have it and the
information was not available in public records and appeal against
confiscation of property has attained finality.

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