ISLAMABAD - The Federal Board of Revenue (FBR) on Tuesday said no decision has been taken to issue notices to the concerned, who did not disclose their foreign wealth and having offshore companies in their tax returns.
“We have not taken any decision in Panama Leaks disclosures yet, as we are making strategy that will take a week or so,” said Dr Muhammad Iqbal, official spokesperson of the FBR, while talking to The Nation. He further said that FBR is examining whether tax department could take any decision on the basis of Panama leaks or not as per tax laws of the country.
Chairman FBR Nisar Khan informed the National Assembly Standing Committee on Finance that FBR would recommend to check the method for tax avoidance after the disclosures of offshore companies. . “We are very carefully looking into the issue. We are in the process of proposing changes in tax laws to control tax avoidance in Pakistan””, he added.
Sources informed that FBR could not take a decision to inquire into the Panama Leaks disclosures without getting approval from the government. “The FBR will start investigation if Prime Minister or Finance Minister give approval,” said an official wishing not to be named.
Sources further informed that FBR does not have official papers establishing that they really stashed their wealth abroad. Similarly, there should be a bilateral avoidance of double taxation and exchange of information treaty, which FBR does not have.
Panama leaks had identified over 200 Pakistanis so far. The data from the Panama Papers, available on the website of the International Consortium of Investigative Journalists - one of around 100 news organisations - also reveals the offshore holdings of members of Prime Minister Sharif’s family, brother-in-law of Chief Minister Shahbaz Sharif; Senator Rehman Malik and Senator Osman Saifullah’s family.
The Senate Standing Committee on Finance has summoned FBR, State Bank of Pakistan, Securities Exchange Commission of Pakistan on April 28 to brief the committee on their role and responsibilities on offshore companies.
Meanwhile, opposition parties are ostensibly making all-out efforts to establish a unanimous stance against government in terms of Panama leaks issue.