ISLAMABAD: Federal Board of Revenue (FBR) categorically conveyed to the National Assembly Standing Committee on Government Assurances that it has not held in abeyance 242 cases of offshore assets appearing in the Panama Leaks on “time-barred” pretext.
The committee met with Malik Muhammad Amir Dogar in the chair at Parliament House. Director General International Taxes Dr Muhammad Ishfaq informed the committee that it is factually not correct that FBR has held in abeyance 242 cases appearing in the Panama Leaks “on the pretext of being time barred.” He said that limitation of five years within which to amend an assessment has been provided by the law under section 122 of the Income Tax Ordinance.
He said however, through amendment in the Finance Act 2018, this limitation has been changed for concealed foreign assets/income, only. He said that now, consequent to the aforesaid amendment, any amount representing investment, money, valuable article or expenditure situated or incurred outside Pakistan and foreign sources undisclosed income are required to be added to the income of the person in the immediately preceding tax year of discovery.
The director general said that FBR could have traced 150 cases out of 444 cases. He said that FBR recovered Rs6.5 billion out of Rs14.5 billion from the cases. He said that 21 people of Panama Leaks cases have taken amnesty last year through amnesty scheme while 2 people have taken amnesty this year. He said that a total of 291 cases are pending.
Answering a question, he said, “We have traced cases only from 11 foreign countries. We could not get information of assets but only names of people, company and country could be achieved.”
Answering another question, he said that Switzerland is not included in 11 foreign countries. He said, “We can get some information from year 2016 but before this year, information is time barred.” He said that there is need of legislation to remove time bar limitation. Moulana Abdul Akbar Chitrali of Jamaat-e-Islami (JI) said that there is discrimination, as cases of those people who got the National Reconciliation Ordinance (NRO) are not being pursued.
Minister for Parliamentary Affair Ali Muhammad Khan seconded Chitrali and said that is not an issue of Chitrali but all of the members. “There is no law and we will pursue these cases. We are ready if there is need of any legislation for this purpose,” he said. The committee summoned the finance minister and the chairman FBR to its next meeting.
