ISLAMABAD  -   The Supreme Court on Thursday directed the authorities to produce on next hearing 20 Pakistanis who hold properties abroad but their source of income is suspicious.

These persons include those who had opted for the previous government’s amnesty scheme, those who disowned the properties, those who responded to notices, and those who disclosed their assets but did not pay taxes.

A three-judge bench headed by Chief Justice Saqib Nisar was hearing the case of foreign assets stashed abroad by Pakistanis without disclosing the same in the country.

The CJP remarked that according to FIA DG foreign properties owned by Pakistanis are estimated at Rs1,000 billion in worth. A dam could be constructed in Pakistan with such a huge amount, he observed.

The court ordered the authorities to produce the above said 20 people in court on the next hearing and they would be asked to provide money trail of their assets.

This came as the government informed the court during the hearing that under the existing laws it cannot arrest such people as have stashed assets abroad without disclosing those in the home country.

The State Bank of Pakistan (SBP) governor also informed the court that it has no jurisdiction over the branches of Pakistani banks opened abroad for getting the details of the account holders and that the Federal Board of Revenue (FBR) cannot prosecute those who have illegally stashed their assets abroad.

Attorney General for Pakistan (AGP) Anwar Mansoor Khan, Federal Investigation Agency (FIA) Director General Basheer Memon, SBP Governor Tariq Bajwa and FBR Chairman Jahanzaib Khan appeared before the court for the hearing.

Memon submitting FIA’s report stated that 894 persons have been identified who own properties in United Arab Emirates (UAE).

Out of them, 374 have declared their properties in Amnesty Scheme 2018 while 150 persons neither declared their properties nor have they paid the tax.

He further informed the bench that 82 persons have disowned the assets while inquiry is underway against 99 persons who did not respond to their notices.

Of the total 374 persons, 150 own 203 properties each of an average worth of Rs50 million, according to FIA report.

The chief justice observed that those who have illegally stashed assets abroad are the enemies of the country.

However, he clarified that those who earned in foreign countries and made properties there are differentiable from the ones who earned in Pakistan but stashed their wealth abroad, he further observed.

FIA DG said that his officers worked day in, day out but due to announcement of amnesty scheme their action was stopped. However, now they have resumed their work on this matter, he added.

The CJP asked SBP governor to suggest how to proceed further in the case. “Should we dispose of the matter and leave it to the executive?” he asked.

Bajwa informed the bench that it has become very difficult to launder the money since the top court took notice of the matter. He asked the bench to consider it a test case and summon the persons apparently having illegal wealth abroad along with their affidavits. Recoveries could be made if someone has not paid taxes, he added.

During the hearing, the AGP informed the bench that those who have not declared their foreign assets cannot be arrested under the present tax regime. As per the Income Tax Ordinance, the government can only recover tax from them.

He informed the court that the government has also established an Assets Recovery Unit for the purpose.

The chief justice remarked that when there are lacunae in the relevant legal provision then amendments must be made.

The CJP inquired from SBP governor if details of accounts can be sought from Pakistani banks’ branches opened abroad.

Bajwa said that the foreign branches of Pakistani banks do not fall under the SBP’s jurisdiction because they work under the licences issued by the countries where they operate.

It means the accounts opened in foreign countries by the Pakistanis cannot be identified, chief justice remarked, and asked whether the same was the case with the Swiss Banks. The SBP chief responded that Pakistan has no such treaty with Swiss authorities but a treaty has recently been signed with the UK.

“If we cannot identify and access the account details then what the FBR had been doing so far?” the judge wondered.

FBR informed the court that it cannot prosecute the foreign account holders.

Also, SBP governor said that if someone has paid the tax to the country where the property is situated then Pakistan cannot claim any tax from the owner.

The top court while summoning the 20 persons having properties abroad adjourned the hearing for November 1.

According to the list of persons who claimed Amnesty Scheme 2018, Waqar Ahmad owns 22 properties, CEO Std Securities (Pvt) Limited Maushad Chamdia 12, Muhammad Amin 12, Zubair Mueen 9, Islam Salim 8, Agha Faisal 7 and Syed Muhammad Ali owns 6 properties.

According to the same list, Sheikh Tahir and Majid Kapur jointly own 8 properties, Nayyar Sheikh 4, Muhammad Ramzan 2, Saeed Minhas 2, Imtiaz Anwar 2, Abdul Aziz Rajkotwala 6, Naureen Sami 3, Hamayun Bashir 2, Shujar-ur-Rehman Goraya 2, Sardar Mumtaz Khan 5, Sardar Dildar Ahmad Cheema 2 and Faisal Hussain owns 4 properties abroad.

 

 

SYED SABEEHUL HUSSNAIN