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FBR identifies 50,000 potential cases in real estate

By Mehtab Haider
May 22, 2018

ISLAMABAD: The Federal Bureau of Revenue (FBR) has identified 50,000 potential tax dodgers through mapping of plazas in posh areas and getting data from land registration authorities, directing under filers to avail themselves of Tax Amnesty scheme and warned those to face dire consequences who would not declare assets after expiry of amnesty from July 1, 2018.

With identification of massive 50,000 cases of real estate all over the country, the Tax Amnesty at domestic front can achieve success provided the Supreme Court puts its weight behind this amnesty by clearing all existing confusions and doubts about it.

First time in the country’s history, the FBR has undertaken broadening to tax base exercise seriously and got some positive results. After massive reduction in income tax rates and jacking up taxable ceiling up to Rs1.2 million, the FBR has been left with no other option but to simplify its tax system and ensure compliance of new taxpayers otherwise the whole tax structure will be at stake from the next fiscal year, said the official. “There are some glaring examples where owners of plazas have sold hundreds of flats and malls but did not bother to declare in their returns,” said top FBR official while talking to The News here on Monday.

No stern action will be taken against them till the expiry of existing Tax Amnesty scheme on June 30, 2018. After July 1, 2018 the FBR will move its long arm of law against potential tax evaders. “We have identified 50,000 potential cases in real estate where massive under declaration have been found. For instance there are owners of shopping malls and plazas having units in the range of 200 to 1000 in one plaza but they have declared peanuts in their filed returns. The record shows transactions of billions of rupees having no record with tax authorities,” top FBR officials confided to The News here on Monday.

The FBR, the sources said, had done mapping of plazas in posh areas of major cities where 50 to 100 big investors invested money on average in each such plaza. “We have obtained records of around 1000 members of Association of Builders and Developers of Pakistan (ABAD) with details of projects executed by them in whole of the country,” said the official.

The FBR has also got details from Sindh Building Control Authority about 2,500 projects which they approved in last five years. “The FBR has also managed to get details from DHA Karachi, Bahria Town Karachi and others,” said the official. “We have obtained transaction detail about 50,000 cases and confronted with them. We have directed the taxpayers to avail tax amnesty scheme and whiten the undeclared assets otherwise the FBR will move with iron hand against potential dodgers from July 1, 2018,” said the official.