A. Background: (1) 3044 of 5.3.25 about Dubai Land Department: Revolutionary Smart Rental Index (2) Other relevant TLQCs are in para D.

B. Updated Commentary

Further to KQU 3993 dated 16.7.2026, being an important matter, we would inform you about Mr. Hamza Shahnawaz Article of LTO Karachi targets 174 taxpayers in foreign assets scrutiny drive (Attachment 3641.1) in the ensuing paragraph, with emphasis in bold & Underline for quick reading.

2. The LTO Karachi has launched a major scrutiny exercise targeting 174 high-profile taxpayers over their foreign assets under Pakistan’s Automatic Exchange of Information (AEOI) framework, as the FBR intensifies efforts to detect undisclosed offshore wealth and strengthen tax compliance.

3. According to sources, the AEOI Zone of LTO Karachi has initiated a comprehensive review of the foreign assets and overseas financial holdings of the selected taxpayers. The tax authority will also seek information from partner jurisdictions through international information-sharing arrangements to verify whether foreign assets and income have been properly declared under Pakistan’s tax laws.

4. Sources said LTO Karachi has assigned the selected cases to Assistant Commissioners and Deputy Commissioners Inland Revenue for detailed audits and investigations.

5. The officers will conduct proceedings under Sections 108 and 165B of the Income Tax Ordinance, 2001, which empower the tax authority to obtain information and exchange financial account data with foreign jurisdictions under international agreements.

6. In addition, the taxpayers will be monitored under Sections 182(1A), 182(7), 182(17), 182(25), 182(26), 182(27) and 182(28) of the Income Tax Ordinance, 2001, which prescribe penalties for various forms of non-compliance with tax documentation and reporting obligations.

7. Tax officials have also been directed to examine compliance with Chapter VIA (Documentation and Country-by-Country Reporting Requirements) of the Income Tax Rules, 2002.

8. The chapter sets out documentation standards and reporting obligations for multinational enterprises and other qualifying taxpayers involved in cross-border transactions.

9. According to sources, many of the taxpayers selected for scrutiny are linked to the fund management, securities, real estate investment trust (REIT) and financial services sectors, where overseas investments and foreign financial assets are relatively common.

10. The investigation forms part of the FBR’s broader strategy to utilise information received through the AEOI framework to identify undeclared offshore assets, improve voluntary tax compliance and combat cross-border tax evasion.

11. Under the AEOI mechanism, Pakistan exchanges financial account information with partner jurisdictions in accordance with internationally recognised tax transparency standards, enabling tax authorities to verify offshore financial holdings and foreign income reported by taxpayers.

C. Kasbati & Co Views and Recommendation

1. Although the above news is in respect of LTO Karachi, however, in our views, this will be done by other major tax offices too, 

2. Those who directly or indirectly deal in Foreign Assets, whether Residents or Non Residents be ready and careful.

D. List of relevant TLQCs

(a) 2993 of 8.1.25 about Pakistani tax residents' UAE & UK Property Capital gain & Rent taxability.

(b) 3006 of 20.1.25 Resident Pakistanis in UAE & UK – Rent & Capital gain not taxable- ATIR DB

(c) 3035 of 19.2.25 about Capital Gain Tax on Property & Shares KTBA, etc Seminars

(d) 2757 27.5.24 about Dubai Leaks, etc Ex Minister & Ex FBR Chairman views and KCR

(e) 2746 of 21.5.24 about Dubai Leaks, etc: Unlocked Pakistan’s USD 20+ billion Property pie

E. Further Details & Services 

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Advisory, Statement or Return Filing or Review services, or related accounting matters like the above, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com. Your Goodself may continue to get other services from your current Tax & Legal Advisors.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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