ISLAMABAD – The Federal Board of Revenue has sought details from the United Arab Emirates (UAE) authorities, of Pakistani nationals who have acquired ‘Iqama’ (work permit).
In a letter to the UAE Ministry of Finance, the tax regulator said it was seeking data of those who may have ‘siphoned off funds illegally from Pakistan, parked them in the UAE, and are now hiding behind Iqama-based residential status’.
The FBR’s directorate of internal taxes said information already received from the UAE was ‘not very substantial’ as details of only 3,620 accounts were reported and the number of material accounts with ‘substantial balance is negligible’.
FBR said the received information was not only contrary to the expectations but also insignificant in comparison with Pakistan’s other exchange partners.
“The internal deliberations on the matter indicate that it might be due to the UAE’s domestic laws which allow foreign nationals to obtain residency/Iqama on the basis of investment beyond a certain threshold. This may be pointed out that we have absolutely no problem with the Pakistani nationals investing and doing business in the UAE legally with lawfully remitted funds,” the letter addressed to Younis Haji Alkhoori, under-secretary at the UAE Ministry of Finance said.
“Article 26 and 27 of Pakistan-UAE DTA support formal and structured deliberations on a matter of mutual or a unilateral concern,” added the FBR in the letter.
It is also expected that an FBR team is expected to visit the UAE in the first week of September to take up the issue and fetch maximum details.
It bears mentioning that the former Pakistani premier Nawaz Sharif was disqualified on the basis of an iqama which he had not shown in his documents contrary to rules.
Sharif faced an inquiry conducted by the supreme court after the Panama Papers came to the fore, however, his disqualification was on the basis of the work permit which he obtained from UAE.
