ISLAMABAD: Pakistan and the United Arab Emirates have agreed to develop better mechanisms to share tax information about Pakistanis investing in the UAE, the chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi said on Saturday, confirming that the tax collecting body had received information about Pakistani citizens who have invested in properties in the Emirates in a bid to conceal illegal wealth.
Under the common reporting system (CRS), which allows for the automatic exchange of banking information between the tax authorities of countries, Pakistan received the data from the Dubai Land Department (DLD) after a three-day meeting between the UAE finance ministry and FBR representatives in Dubai that concluded on October 10.
Zaidi said that the UAE authorities had agreed to cooperate in the sharing of information about Pakistani-owned properties, adding that the two countries would work to revise a 1993 UAE-Pakistan double tax treaty aimed at eliminating fiscal evasion as well as double taxation and additional and indirect taxes.
“The main purpose of our meeting was to develop a uniform and internationally acceptable system of information exchange between UAE and Pakistan... which was not there,” Zaidi said at a joint-presser alongside adviser to the prime minister on finance, Dr. Abdul Hafeez Sheikh, in Islamabad. “This cooperation will provide valuable information to the tax machinery.
UAE authorities could not be immediately reached for comment for this article.
Zaidi said Pakistan also brought up the abuse of a residency permit, called the iqama, which allowed expats to live and work in the UAE. Under UAE law, foreign nationals obtain an iqama on the basis of investment beyond a certain level.
Pakistani tax authorities believe Pakistanis have obtained UAE iqama permits through a Residence by Investment (RBI) initiative in order to park tax-evaded and ill-gotten money in the Emirates.
“We believe that iqama is a visit visa and should not be used as a tax residency substitute,” Zaidi told reporters. “Because when we go for tax information of Iqama holders under the CRS, they [UAE authorities] used to refuse us. After our negotiations, UAE has agreed to correct that position.”
“Now we will have another meeting next month in Islamabad,” Zaidi said.
Islamabad-based economist, Zia Banday, said the UAE’s cooperation with Pakistan on the ease of data exchange would boost its image as a ‘clean’ country.
“It will present us as a clean country... that does not allow dirty money to enter its territory,” Banday said, adding that the move would deter people in Pakistan from evading taxes and moving illegal money to the UAE.
“Pakistan may not get immediate gain by getting its money back tomorrow, but the fear it creates will act as a deterrent for people to follow rule of law,” he said, adding that he hoped the government would expand similar cooperation mechanisms with other countries known to be tax havens around the world.
FBR chief says UAE agrees to share tax information of Pakistani investors
FBR chief says UAE agrees to share tax information of Pakistani investors
- FBR chairman says tax collection body received information about Pakistanis investing in the UAE in a bid to conceal illegal wealth
- Experts say the move could act as a deterrent against tax-evasion and movement of illegal assets
Afghans rally against Pakistan and civilian casualties
- UN says a week of border fighting killed dozens of Afghan civilians, displaced over thousands
- Fighting broke out along the Afghan border after Pakistan launched air strikes targeting militants
GARDEZ, Afghanistan: Decorating their soldiers with colorful garlands, hundreds of Afghans rallied in border provinces to decry Pakistan killing civilians and to show support for their troops battling at the frontier.
A week of border fighting between the two neighbors has killed dozens of Afghan civilians and displaced tens of thousands, according to UN figures.
In Gardez, the capital of eastern Paktia province, residents gathered while some waved the white flag of the Taliban government.
“Today we’re out in central Paktia, Gardez, against the cruel attacks of Pakistan on Afghan civilians,” said Ghamay, a demonstrator who only gave one name.
“We’re out here to defend our land,” he added.
At least 42 civilians have been killed and 104 wounded since February 26, including children, the UN mission in Afghanistan reported.
Islamabad is yet to comment on civilian casualties and said its troops have killed more than 430 Afghan soldiers.
Afghanistan estimated Pakistani fatalities among troops at around 150. Casualty claims from both sides are difficult to verify independently.
Fighting erupted with an Afghan border offensive in retaliation for earlier Pakistani air strikes, which Islamabad said were targeting militants.
A rally was also held in the Gurbuz district of Khost province, which has been hit by fighting.
“Today’s protest is not just for a show, we’re out for those 17 martyrs in Kunar including women, children and old people,” said protester Obaidullah Gurbaz.
“You can see the soldiers standing behind us for the past seven, eight days. They are hungry and thirsty but defending the country strongly,” the 70-year-old added.
Afghanistan’s defense ministry said more than 25 soldiers have been killed.
FIGHTING HITS FOOD AID
Clashes at the border have also displaced nearly 66,000 Afghans, the International Organization for Migration (IOM) said.
At least one of the UN agency’s centers in Nangarhar province “sustained significant collateral damage,” the IOM said.
As well as putting a halt to humanitarian support for Afghans returning from Pakistan, the fighting has also suspended emergency food aid.
About 160,000 people have been affected by the stoppage, the World Food Programme said, in a country already facing a hunger crisis.
One resident in Nangarhar said the UN agency “used to help us a lot,” but now he has cut the amount of bread he eats.
“We search around, sometimes with a full stomach and sometimes with half,” said Farhad, who only gave one name.
“Last night I went to my neighbors and relatives to borrow 1,000 Afghanis ($16) but nobody gave it to me.”
