ISLAMABAD: Federal Board of Revenue (FBR) has requested Ministry of Finance of United Arab Emirates (UAE) to provide the information of all those Pakistanis who have sought UAE Iqama under Residence by Investment (RBI) Schemes.
FBR in its letter to UAE’s Ministry of Finance has stated that such delinquent Pakistan tax resident persons have not only siphoned off funds out of Pakistan, parked them in UAE but also effectively circumvented the OECD-sponsored CRS exchange of bank and financial account information. UAE’s Ministry of Finance has not responded to all earlier written requests of FBR in this regard so far.
The FBR letter further states that the automatic exchange of information framework, in essence, was conceived and implemented to put up a well-coordinated and concerted global fight against organized tax theft and to inject transparency in the international taxes system. In the Pakistan-UAE meeting on EOI held in Dubai on October 9-10, 2019, a commitment was made to come up with a detailed formal response.
However, not only that no reply whatsoever has been received from UAE, but also that a few subsequent rejoinders issued by FBR went unanswered, even unacknowledged. The UAE’s persistent silence on FBR’s efforts to develop a robust framework for sharing of structured information of Pakistani Iqama-holders has not been productive so far. The best inter-nation relationships are mutually responsive, symbiotic and empathetic, and are the product of superior diplomatic wisdom, the letter stated.
FBR has requested UAE to provide a well laid out roadmap on UAE Iqama holders’ information. Alternatively, Pakistan would be constrined to seriously consider rolling out appropriate measures, including termination of Pakistan-UAE avoidance of Double Taxation Agreement at an early date.