UAE provides particulars of 31 super rich Pakistanis

ISLAMABAD: The United Arab Emirates (UAE) government confirmed particulars of 31 super rich Pakistanis who owned over 55 properties worth around Rs60 billion in hearts of Dubai.

Disclosure was made weeks after Pakistan shared details of these Pakistanis with UAE authorities who had allegedly made investment in real estate in Dubai. The Economic Crimes Wing of Federal Investigation Agency (FIA) requested Ministry of Finance of UAE for exchange of information about filthy rich Pakistanis on November 16, 2017.

“The UAE tax authorities have exchanged detailed information in respect of fifty three Pakistani individuals having a number of investments in real estate along with copies of passports in 31 cases vide letters dated January 22, 2018 and January 28, 2018, respectively,” read an official document prepared by FBR authorities. FIA officials claimed these 31 Pakistanis pumped around Rs60 billion into these 55 properties in heart of Dubai.

Earlier for the first time, Geo News/The News disclosed that some 7,000 Pakistanis have bought properties worth an estimated Rs1.1 trillion in the heart of Dubai in the past one-and-a half decades. Interestingly, the majority of them did not disclose these properties in their annual returns and were said to be moving their assets out of the country to avert getting caught in the event of a serious crackdown on this unaccounted-for money.

“A list of 100 Pakistani individuals, who have allegedly purchased properties in Dubai/UAE, was received in FBR office from the Director, Economic Crimes Wing, FIA HQ which was forwarded to the head of EOI Unit, Ministry of Finance. The UAE Tax authorities through two letters on January 22, 2018 and January 28, 2018, provided the details of 55 transactions of properties made by Pakistani individuals and the copies of 32 passports. Out of these 32 cases, CNIC in 31 cases are available. 29 out of these 31 individuals are registered with the FBR. Only five individuals declared their UAE properties in available FBR record,” read the documents available with Geo News. FBR also requested the Ministry of Foreign Affairs, Pakistan, as an alternative course of action, to arrange his meeting on this issue with the Ambassador of UAE, revealed the documents. The Foreign Office took up the matter with the Embassy of UAE and wrote many letters but the same also remained unheeded.

FBR further informed the apex court on Thursday that according to the data available with FBR, most of these 29 individuals are regular filers of their income tax returns. Some 27 have filed last five completed tax years’ returns, documents further revealed. All 29 of them have filed at least 7 out of last 10 completed tax years returns and most have filed all the 10, they added. The information has been passed on to concerned field formations to ensure the filing of any missing returns from last five completed tax years and also to check whether purchased properties have been declared by the taxpayers in their returns, revealed the official documents. The 02 unregistered individuals have been registered, they added.

Pakistan and UAE have signed the Convention for the Avoidance of Double Taxation in 1993. Article 27 of the said Convention, it is said, deals with the exchange of information. The UAE authorities had earlier requested for amendment to various articles of the Convention in 2012 and amendment to Article 27 was also proposed to align it with the OECDModel 2010. Approval of the Federal Cabinet was sought in this regard to initiate the negotiations for amendment to the Convention between the two countries and after the necessary approval, the matter was taken up with the UAE authorities through the diplomatic channels.

It was requested that an appropriate set of dates and venue for the negotiations to revise the convention may be conveyed to Pakistan at the earliest, but the UAE authorities have not yet replied. It is important to mention here that all the information exchanged under the avoidance of double taxation agreement signed between the governments of Pakistan and UAE is to be treated under the Article 27 of the said agreement. This article provides that any information received by a contracting state shall be treated as secret in the same manner as information obtained under the domestic laws of that state.

However, if the information is originally regarded as secret in the transmitting state, it shall be disclosed only to persons of authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes which are the subject of the convention.

Such persons or authorities shall use the information only for such purposes but may, disclose the information in public court proceedings or in judicial decisions. As such, the information cannot be shared with any other agency or department for any other purpose in view of the provisions of the avoidance of double taxation agreement between the two countries.

Moreover, in a TV programme “Aaj Shahzeb Khanzada Ke Saath” aired on the Geo TV Network on 05-12-2018, the anchorperson stated that he possessed details of around 7,000 Pakistani individuals who have made real estate investment in UAE.

The anchorperson Mr Shahzeb Khanzada and this reporter have been written letters to share details available with them with FBR. As soon as the details are received, the UAE tax authorities will be approached for authenticating the information so that action can be initiated against the resident Pakistani investors, read FBR reply submitted with Supreme Court.