In the correspondence to the Ministry of Finance UAE,” Mr. Zaidi said he would like to attract attention towards approaches such as RCI (Residence by Investment), which can be later utilised to prevent reporting of bank and financial account information under OECD’s Common Reporting Standard (CRS) framework.
“The proceeding is of import to us since Pakistan is perhaps not having the ability to gain access to actionable bank account information in regard to our tax-resident persons that are supposedly hiding behind UAE-Iqama established residential status” — that the chairman FBR states in his correspondence.
He on said there’s just really a devotion and that tax evasion through such procedures and strategies have a big impact on the perception of a taxpayer, and also fix at a top level of government to address such issues.
Previously, Pakistan had asked UAE to talk about details of the Pakistanis have spent into properties worth billions of dollars. The choice to move and establish mutual cooperation is not yet been made. It will be a benefit, if UAE decides to share the information with Pakistan on such things.
UAE agreed to give appropriate reply in time
FBR’s chairman also remembered how at a interview on Exchange of Data between Pakistan and UAE, this issue was mentioned with a devotion made by UAE to give a response in a particular time, which remains pending. While referring to the significance of the matter, Mr. Zaidi additionally contacted FBR this issue was increased by Pakistan’s Finance Minister using OECD too.
The OECD replied they are resolving the problem using a two-pronged system at the authority level, first, during implementation of SEOI (Spontaneous Exchange of Data ) and secondly, at a Financial Institution level, through the due diligence tips of RBI.
The OECD urged that:
“In the near Future, where authority has adopted the SEOI mechanism, even the Pakistani capable jurisdiction Ought to Be made aware in cases where its tax-residents obtains citizenship or residence status by Means of a foreign CBI/RBI programme”
His suggestion is an urgent meeting to plan trainings to help overcome RBI problem, including operationalization of both SEOI mechanics, between UAE and Pakistan.
Iqama holders that are currently residing in UAE, do not possess their accounts/balances shared with governments. From 29 jurisdictions, Pakistan gets data under information exchange from OECD it has increased to 44 states however the data is insignificant.