Goldsmiths & Estate Agents to be ‘Informants’ For FBR

In a bid to bring goldsmiths, estate agents, and charted accountants into the tax net and use them as informants to detect dubious transactions, the Federal Board of Revenue (FBR) has issued notices to 56,000 individuals across the country.

The notices have been served through FBR’s automated system.

The notices are intended to oblige real estate agents, goldsmiths, and chartered accountants to register themselves and businesses under the Non-Financial Businesses and Professionals Act and serve as informants for FBR.

The federal government has taken this decision as a result of legislation done in September 2020 under the Anti-Money Laundering Act to fulfill conditions put forward by the Financial Action Task Force (FATF).

During the registration process, all these individuals will fill a form under which they will pledge to provide details of dubious transactions to the FBR. That is, they will become ‘informants’ for the FBR.

However, all such informants-to-be will first have to register as tax filers.

The basis of this decision is FBR’s notification 924 issued on September 29.

As per the circular, the board aims to register more than two million real estate agents and goldsmiths across the country.

In the first phase, notices have been issued for the registration of 56,000 real estate agents and goldsmiths.

They have been directed to register their business with FBR by January 10 or else face action.

The swerving from terms and conditions of the agreement by ‘informants’ with FBR could lead up to a fine of Rs 100 million.

As per available documents, FBR has also served notices to 250 chartered accountants (CAs) who are not registered with either ICAP or ICMA.

These chartered accountants will also notify the board about suspicious transactions of their clients.

Further, the real estate agents have expressed reservations over the FBR’s decision.

Real Estate Consultants Association (RECA) Chairman Ahsan Malik told News360 that it was difficult for them to label anyone suspicious.

“If we report a suspicious transaction and later the same person becomes a threat to the lives, who would be responsible?”, he asked.

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Ahsan Malik told that all the properties in the country are registered with the government as it collects withholding tax.

Thus, he demanded, the Federal Board of Revenue can obtain information on property transactions from government departments instead of relying on real estate agents.