KARACHI: For the purpose of Benami Transaction (Prohibition) Act 2016, Federal Board of Revenue (FBR) will have the same powers as vested in a civil court under the Code of Civil Procedure 1908, according to the copy of the draft of the act available with Daily Times. The government has introduced the bill in parliament with the aim to deal with the problem of tax evasion and black money, especially in the real estate sector, and to target transactions that are carried out in other people’s names. According to the copy of the draft, available exclusively with this scribe, the authority shall, for the purpose of this act, have the same powers as are vested in a civil court under the Code of Civil Procedure 1908. The FBR has approached the Ministry of Law and Justice to vet the Act while the Ministry of Finance has approved the bill. “No person shall enter into any benami transaction. Whoever enters into any benami transaction on and after the date of the commencement of this Act, shall be punishable with rigorous imprisonment for a term which shall not be less than one year, but which may extend to seven years and shall also be liable to fine which may extend to twenty-five percent of the fair market value of the property while any property which is subject matter of benami transaction, shall be liable to be confiscated by the federal government,” the draft bill reads. The federal government shall, by notification, appoint one or more adjudicating authorities to exercise jurisdiction, powers and authority conferred by or under this Act and adjudicating authority shall consist of a chairperson and at least two other members. No person being a benamidar will retransfer the benami property held by him to the beneficial owner or any other person acting on his behalf. Where any property is retransferred in contravention of the provisions of sub-section (I), the transaction of such property shall be deemed to be null and void. ‘The bill seeks to strengthen the law by empowering provisions prohibiting holding property as benami and restrict the right to recover or transfer property held in benami. The bill further seeks to establish adjudicating authority, set up appellate tribunal and specify the penalty for entering into a benami transaction and provisions for confiscation of benami properties,” said Finance Minister Ishaq Dar. The bill suggests that the authority shall have the powers of discovery and inspection; enforcing the attendance of any person; compelling the production of books of accounts and other documents; issuing commissions; receiving evidence on affidavits; and any other matter which may be prescribed. Moreover, any person who is required to furnish information under this Act knowingly gives false information to any authority or furnishes any false document in any proceeding under this Act, shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine which may extend to ten percent of the fair market value of the property. According to the copy of the draft bill, any authority or chairperson or member of the appellate tribunal under this Act shall have power to require any officer of the federal government or provincial government or a local body or an authority or any person or officer who is responsible for registering any property or maintaining books of accounts or other documents containing a record of any transaction relating to any property or any other person to furnish any information in relation to any person, point or matter as in his opinion shall be useful for or relevant for the purpose of this Act. In order to enforce any provision of this Act, any authority defined under this Act shall at all times and without prior notice, have full and free access to any premises, place, accounts, documents or computer. The FBR has proposed power to the authority to impound documents where any books of accounts or other documents are produced before any authority in any proceedings under this Act or the accounts, books of documents or computer are accessed while exercising powers under section 19. After an order of confiscation has been made under sub-section (I), all the rights and title in such property shall vest absolutely in the federal government free of all encumbrances and no compensation shall be payable in respect of such confiscation, the draft added. Under this act, no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which any of the authorities, or the tribunal is empowered by or under this Act to determine, and no injunction shall be granted by any court or other forum in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. 47. However, any party aggrieved by any decision or order of the appellate tribunal may file an appeal in the high court within a period of sixty days from the date of service of the decision or order of the tribunal to him on any question of law arising out of such order.