The Federal Tax Ombudsman (FTO) has taken serious notice of the Federal Board of Revenue’s (FBR) failure to obtain critical data from the Federal Investigation Agency (FIA) regarding golden visas issued by the United Arab Emirates (UAE) to Pakistani residents making substantial offshore investments. This inaction by the FBR has persisted despite the passage of more than five years since relevant legislation came into effect.
Golden visas are long-term residency permits granted by the UAE to individuals who invest at least AED 2 million (approximately PKR 150 million) in real estate or businesses within the UAE. For Pakistani residents availing these visas, the source of funds and the ownership of overseas assets carry major tax implications under Pakistani law.
However, the FBR has failed to collect or verify this information through FIA’s immigration and travel databases, despite statutory provisions that mandate such coordination.
The Income Tax Ordinance 2001 was amended through the Finance Act 2020, introducing Section 175A, which requires the FBR to establish mechanisms for real-time access to FIA data on international travel, visa issuance, and immigration status of Pakistani citizens.
Sub-section 1(a)/(b) of Section 175A mandates real-time sharing of travel and visa data by FIA.
Sub-section 2 directs the FBR to make arrangements for that access.
Sub-section 3 allows for periodic data reporting in the absence of real-time access.
Yet, despite these clear statutory obligations, the FBR has neither obtained real-time access nor made arrangements for periodic updates from the FIA. This failure has now drawn the attention of the FTO, which has classified it as administrative negligence.
A formal complaint filed by a citizen, Tarik Ahmed, triggered the FTO’s intervention. In response, the FTO has summoned reports from the FBR’s Member Tax Policy and Director General of International Taxes, requiring them to submit comments by July 29, 2025.
The FTO is reviewing the matter as part of its mandate to ensure accountability in public institutions and curb potential tax evasion linked to undisclosed foreign investments.
Speaking on the matter, Karachi-based tax consultant Basharat Qureshi highlighted the dual nature of the issue. He pointed out that it involves:
Ownership of foreign property and its disclosure in tax declarations.
Verification of foreign exchange remittance, which falls under the FIA’s jurisdiction.
Qureshi emphasized that both FBR and FIA must work together to uncover potentially thousands of cases in which:
Pakistani nationals have acquired foreign assets or residency through investment.
These assets remain undeclared in their wealth statements.
The source of funds used for investment may be illegally remitted.
He further recommended that Pakistan’s tax return forms be updated to include mandatory disclosures such as:
Whether the taxpayer holds a foreign passport or resident visa.
The basis for obtaining such documents—be it through naturalization, investment, or other means.
This added layer of transparency, he argued, would help regulatory bodies identify and investigate offshore assets and tax evasion more efficiently.
The FTO’s intervention comes at a time when the government is under pressure to broaden the tax base and tighten monitoring of foreign assets. Yet the FBR’s inability to enforce Section 175A reflects larger structural issues in inter-agency coordination.
According to analysts, this delay has:
Enabled many wealthy individuals to avoid declaring their offshore holdings.
Potentially allowed the illegal flight of capital from Pakistan.
Weakened the tax net by excluding high-value foreign assets from scrutiny.
Without the real-time or periodic sharing of information between the FIA and FBR, the chances of effective oversight remain slim.
To restore public confidence and ensure compliance, experts suggest:
Immediate implementation of data-sharing protocols between FBR and FIA.
Inclusion of mandatory foreign asset disclosures in electronic tax filing portals.
Periodic audits and follow-up on citizens holding golden visas or foreign residencies.
Revisiting Pakistan’s foreign exchange and money laundering laws to plug gaps in capital movement.
The FTO’s directive now puts the FBR under the spotlight, and whether it takes meaningful corrective action by the July 29 deadline will be closely watched.
