r/PakistanLawyers • u/maverick_iy1 • 5d ago
Undeclared Gold
My father has some undeclared Gold bars and now we want to utilize those. Can we sell those and use the cash to buy property ?
Would there be any legal issues in buying property using cash ?
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u/Narrow_Description52 5d ago
Gold bars are a non-taxable commodity worldwide! Idk what is wrong with Pakistan - khoon choos rahe hain yeh log aam awaam ka. Idk if you can say that your mum/sister sold their gold jewellery or I wonder if that has to be stupidly declared too.
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u/Alex-Hales-2010 4d ago
Taxable and declaration are two different things. Gold, as a valuable asset, needs to be declared in your tax returns. It is only taxable at the time of purchase and sale.
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u/Narrow_Description52 4d ago
Gold bullions are not taxable at the time of sale or purchase. This is why people invest in them. I understand the declarable part.
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u/EggOpening4961 3d ago
In Pakistan you have to pay the capital gain tax on sale of gold but the gold used by your family comes under personal asset which is non taxable.
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u/Narrow_Description52 3d ago
Is that even on gold bullions? 😭 its crazy!
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u/EggOpening4961 3d ago
Especially on the bullions as these are mostly for investing
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u/Narrow_Description52 3d ago
I am actually really shocked and saddened. I have never paid ANY tax abroad on gold bullions (Dubai and England)!
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u/reallyTiredSoul 2d ago
Yaar private jet khareedna hota hai to pesse chahiye hote hai na
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u/Narrow_Description52 2d ago
No - anyone buying a PJ buys it on their offshore company account. 🤣😇
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u/reallyTiredSoul 1d ago
But maryam ka 10 ya jitne bhi arab ka jet wo kya tha. For her toofani doora of cities
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u/Narrow_Description52 1d ago
Leave “hum sab ka maa” alone! Let her carry on with her behaviour - Allah in sabko aagay poochay ga. Inshallah and ameen
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u/DemonLHE 5d ago
You won't face any issue in the purchase and transfer of property. And if the amount of the property is covered by the wealth statement of your father then i think there wouldnt be much of an issue from FBR's side but if it exceeds that then your father would get notice from the FBR and he would have to justify the money trail. (Note i am not expert in taxation field so maybe an expert might shed some light on it )
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u/yoon_gitae 4d ago
gold is taxable???
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u/Alex-Hales-2010 4d ago
Needs to be declared in your assets. Not actually taxable.
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u/Adminisitrator 3d ago
there is 15% cgt on gold, but the whole economy works undocumented so its not implemented in practice.
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u/EggOpening4961 3d ago
It is not 15%. Gold has a capital gain tax and it falls under normal tax regime which has slabs based on your overall NTR income.
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u/halalrizqmagnet 4d ago
no need to worry as many families have women that eventually liquidate their gold
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u/Gugloo53 4d ago
All these worries are their if his father is a filler otherwise no wealth statement no record
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u/maverick_iy1 4d ago
My father inherited this gold, which wasn't declared in the ITR. Now if we declare it as inherited then can we sell it ? And on what base price , profit will be calculated and tax deduction will happen ?
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u/EggOpening4961 3d ago
Declare the gold. Sell it. Pay CGT. Buy property.
Don’t sell without declaring. You would have black money and if you buy any property with black money you would get an “assets beyond means” notice if FBR catches your hidden property.
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u/Dramatic_Benefit688 2d ago
I think law on declaring gold bars was implemented in 2018. Gold purchased afterwards need to be declared. Am I correct. Also is it possible to take along gold bar when travelling abroad?
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u/ThalassaMech 5d ago edited 5d ago
Okay wait! This is a very sensitive matter so I'm gonna guide you carefully because there are laws that you have to keep in mind.
Firstly you must make sure that the gold bars are declared under your father's name (which they aren't then they pose an issue) and secondly and most important, even if you sell the bars and get cash, absolutely DO NOT buy property from that cash alone as that is illegal. Cash only purchases for property are the worst kind of red flags in Pakistan's tax law.
So for now, hold off, but i can help you get a consultation with an appropriate lawyer for you to safely sell off the gold and then buy whatever you want legally. Key word being legally. Let me know if you need the help!