FBR tightens noose around real estate agents, developers

No public or private development authority shall conduct business with agents who are unregistered with the FBR as a DNFBP.

ISLAMABAD: The Federal Board of Revenue (FBR) has ordered real estate agents, builders and developers to obtain registration certificates before January 1, 2022, for continuing business operations.  

FBR is pleased to impose the condition on all real estate development authorities, cooperative housing societies, and all other housing societies, schemes and firms dealing in the real estate, a notification in this regard states. 

As per details, the Anti-Money Laundering Act, 2010 empowers FBR to license or register its reporting entities (R0s) namely, Designated Non-Financial Businesses and Professions (DNFBPs), impose conditions on any activities by DNFBPs to prevent the offences of money laundering, predicate offences or financing of terrorism through issuance of directions or imposing conditions under the relevant provisions of the AMLA, 2010. 

The tax department further added that no public or private development authority shall conduct business activity with any real estate agent for the transfer or registration of immovable property unless the real estate agent is registered with the FBR as a DNFBP.

The above condition shall apply to all real estate agents registered or dealing with the development authorities, housing authorities, cooperative housing societies and other housing schemes dealing in land development for residential and commercial purposes, construction, and sale,purchase or transfer of ownership rights. 

The agents have also been informed that any volition of this condition shall be subject to legal action.

 

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