ISLAMABAD: Federal Board of Revenue (FBR) Chairman Nisar Mohammad Khan on Wednesday briefed the National Assembly Standing Committee on Finance, Revenue about the Panama Papers issue and actions taken in this regard. He said that the main role of the FBR was to monitor the tax related matters on income and transaction of funds by the citizens of Pakistan.
He told the committee that the FBR had taken some important measures with regard to the investigation on Panama issue. The Directorate General of Intelligence and Investigation has been tasked to investigate the issue,” he added.
The National Assembly Committee met here with Qaiser Ahmad Sheikh in the chair to get briefings from the FBR chairman, the chairman of the Securities and Exchange Commission of Pakistan (SECP), and the president of the State Bank of Pakistan (SBP) on Panama Papers issue. Moreover, a briefing by the FBR chairman regarding imposition of tax and its implementations on real estate transactions in the light of amendments made in the Finance Bill, 2016-17 was also part of the agenda of the committee meeting.
Director General, Intelligence and Investigation informed the committee that certain constraints were there before starting the assignment on Panama Leaks, because incomplete information was published by media. However, 444 cases were found by Intelligence & Investigation, accordingly FBR investigated and traced 303 addresses. He further informed that notices were issued under income tax section 176, Ordinance, 2001, to these 303 individuals asking about different information. However, FBR has received 94 responses in this regard, so far.
The chairman SECP Zafar Hijazi informed the committee that SECP had provided required information to FBR about the companies registered with SECP. SECP was regulator for inland companies only and SECP has no concerned with foreign companies. However, SECP has been issued the directions to the local companies for providing the details of their companies registered abroad in the name of same directors.
The Governor State Bank of Pakistan (SBP) Ashraf Wathra informed the committee that applications under equity investment abroad up to $ 5.00 million were approved by SBP and applications for equity investment abroad above $ 5.00 were recommended to ECC for their approval. He further informed the Committee that $85 billion have been invested in offshore companies with the intimation of SBP. He added that SBP was working as regulator not an investigator. However, SBP will provide required information to FBR in this regard.
