FTO Challenges FBR on UAE Golden Visa Data Access
The Federal Tax Ombudsman (FTO) has issued a notice to the Federal Board of Revenue (FBR) in Pakistan, questioning the board's inability to secure data on UAE golden visas granted to Pakistani residents. This inquiry highlights a significant lapse in policy enforcement and data acquisition, which has persisted for over five years despite legal provisions mandating such access.
Understanding the UAE Golden Visa Program
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UAE's golden visa program is designed to attract investors by offering long-term residency in exchange for substantial investments. Typically, a minimum investment of AED 2 million is required, often through real estate purchases. However, the program also accommodates various investment options, including business and fund investments.
Legislative Framework and Policy Failures
Under Section 175A of the Income Tax Ordinance 2001, amended by the Finance Act 2020, the FIA was required to provide the FBR with real-time access to international travel and visa data. Despite this mandate, neither real-time access nor periodic data transfers have been realized, prompting the FTO to demand accountability from the FBR.
Implications for Pakistani Investors
The lack of data on Pakistani
investors benefiting from the UAE's golden visa program raises concerns about transparency and oversight. Without accurate data, the FBR's ability to monitor international investments and ensure tax compliance is severely hindered, potentially impacting the fiscal landscape.
Broader Context: Golden Visa Programs Worldwide
While the UAE's program is under scrutiny, golden visa programs are available globally, including in
Portugal and other countries, each with unique investment criteria and benefits. These programs are often leveraged by wealthy individuals seeking residency and investment opportunities.
Conclusion: Need for Action and Transparency
The ongoing challenges faced by the FBR in acquiring necessary data underline the need for improved policy implementation and transparency. As the FTO seeks explanations, the spotlight remains on ensuring that the provisions of the Income Tax Ordinance are effectively enforced to support national interests.
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