June 5 2017
In a latest report emerging from the investigative quarters at the Federal Board of Revenue (FBR), there has been a recent hike in the trend of cash transits as gifts. Deemed as yet another way of laundering money, the presents exchanged between a handful of the rich Pakistanis only during the current fiscal year, amount to a massive Rs102 billion. The authorities maintain reasons to believe that amounts transferred as “gifts” employ the ploy as means to tax evasion.
According to the existing laws, there is no tax imposed on exchange of gifts. One of the top tax officials at the FBR pointed out that this loophole is being used as a tool to safely transfer income, assets and money without paying taxes.