Islamabad: The government-initiated Benami Act is now operational, allowing tax officials to confiscate properties, expensive vehicles and bank accounts registered in the name of fictitious individuals, a news source reported.
Reportedly, the planned confiscations will involve all kinds of immovable and movable assets registered under fictitious names for tax evasion purposes.
The law was passed almost two years ago, and its implementation had been much awaited since. The delay had been caused due to the authorities’ inability to finalise the rules of the framework in accordance with the Benami Traction Act 2017. FBR notified the rules through a notification numbered SRO326 of 2019.
The term ‘benami’ refers to the practice of holding property/assets in the name of one person for the benefit of another. This is usually done to avoid taxes and fees.
Under the newly announced rules, the government has also announced hefty cash rewards for the whistle-blowers who identify benami assets.