Daily Times

KARACHI: The Federal Board of Revenue (FBR) may initiate legal proceedings against the builders and developers who refused to provide details of allottees of shops, flats and other commercial and residential units, Daily Times learnt on Wednesday.

Earlier, the tax authorities have issued notices to property registration authorities and housing societies to obtain details of investors directing them to submit all details including National Tax Numbers (NTN) of all the allottees.

However, the builders, developers have refused to share the details of the aloottees saying that this move will not only sabotage the proposed Tax Amnesty Scheme of the federal government but also badly affect foreign investments, which will damage the already ailing economy of the country.

In this connection, the FBR’s Director General for Broadening of Tax Base (BTB) Tanvir Malik, on Thursday (today), will meet Chairman and members of Association of Builders and Developers Association (ABAD) at ABAD house.

Sources in the federal bureau said the purpose of the meeting is to carve out a workable solution of pending BTB proceedings under section 176 of Income Tax Ordinance 2001.

Sources added that the DG BTB will try to convince the Chairman and members of ABAD to share the details of the allottees at the time of booking of flat/apartment/shop, however, if the meeting did not bring any fruitful changes and failed to meet the bureau’s expectations, the tax authority may consider taking legal action against the builders.

On the other hand, Chairman ABAD, Arif Yousaf Jeewa, has denied receiving any such warnings from the FBR saying that a meeting is being held for the purpose to find an amicable solution.

Jeewa said, “We have spoken to Special Assistant to the Prime Minister on Revenue Haroon Akhtar Khan and Chairman FBR Tariq Mahmood Pasha on the matter and they have assured us that the tax authority will not take action against any builder/developer in the country”.

The Chairman ABAD further said that the association has asked the authority to stop harassing builders/developers by sending such notices as the builders are already paying huge taxes to the government and also acting as Withholding Tax Agents for the FBR.

He said the FBR authorities have assured us that they will find suitable directions in today’s meeting. “The FBR is seeking details of alottees of the shops, flats and other residential units at the time of booking, which is not feasible because they intending buyers are mainly from lower middle class and they may discontinue their deals on receiving such notices from the FBR”.

Jeewa, said we will propose a solution to the FBR that our members can provide details of allottees of shops, flats and other commercial and residential units only, at the time of registry, not on booking.

Published in Daily Times, April 19^th 2018.