ISLAMABAD: Now Federal Board of Revenue (FBR) will get all the required information about the individuals whose names are mentioned in Panama Leaks legally.
Sources told Customs Today that recently Panama gets membership of Organization for Cooperation Economic and Development (OECD), while Pakistan already granted the membership of OECD in September. Federal Finance Minister Ishaq Dar signed the membership on behalf of Pakistan.
Sources said that according to law, FBR already obtained complete authority to get all the relevant information about the individuals who owns off shore companies in Panama. It is also necessary to mention that names of two sons of Prime Minister Nawaz Sharif are also mentioned in Panama Leaks. FBR is already conducting its investigations over the issue while Supreme Court of Pakistan starts regular hearing of this case.
The signing shows that Panama is now implementing its commitment to fully cooperate with the international community on transparency. “Panama’s decision to sign the multilateral Convention is a confirmation of its commitment to take the necessary steps to meet international expectations in the fight against tax evasion,” OECD Secretary-General Angel Gurría said during a signing ceremony.
The Global Fourm on Transparency and Exchange of Information for Tax Purpose is expected to publish in early November a peer review assessment of how Panama’s legal framework and practices over the last three years match up against existing international standards of transparency and exchange of information on request. “The forthcoming report will reflect Panama’s past record on transparency issues. Recently signing, combined with very recent legislative changes opening the door for wide-ranging international cooperation, illustrates the good disposition and commitment by Panama to move forward in the area of tax transparency,” Gurría said.
The convention provides for all forms of administrative assistance in tax matters: exchange of information on request, spontaneous exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection. It guarantees extensive safeguards for the protection of taxpayers’ rights. It also allows automatic exchange of information on option.
The convention is global, and is seen as a critical instrument for swift implementation of the new standard for automatic exchange of financial account information in tax matters developed by the OECD and G20 countries and slated to go into effect from 2017. It will also be critical for implementation of automatic exchange of country by country reports under the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project, and is a powerful tool in the fight against illicit financial flows.
