benami properties

The federal government has taken the decision of offering an incentive to reward the ones who would be revealing the benami properties.

The Federal Board of Revenue (FBR) has issued an SRO on Monday with respect to the Benami Transactions (Prohibition) Act 2017.

The documents mentioned that the FBR would give handsome reward to the ones disclosing the benami properties.

If the price of the benami property is less than Rs2million, then the amount of reward would be 5percent of the price of the property. The same way if the property worth more than Rs2million and less than Rs5miliion, the amount of reward would be Rs0.1 million plus 4percent of the property price.

Furthermore, if the price of a benami property is more than Rs5million, then the amount of reward would be Rs0.22million plus 3percent of the property price.

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The documents mentioned that the amount of reward should be sanctioned after the benami property is confiscated under the section 25.

Benami means something that is without a name. It is an arrangement where a property is held and used by one person and on behalf of another person who paid for it or a transaction that is made for a piece of property under a fictitious name. It could also mean that when the purported owner of a property is not aware of it or denies ownership.

One FBR official said that there a number of people in the tax net who are also engaged in the benami transactions and own benami properties, if any person reveals a benami property, he would be getting the reward and his name would be kept confidential.

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