An ongoing investigation into a possible use of ‘gift back arrangements’ as a money laundering mechanism suggests that the 18th century slogan, ‘no taxation, without representation’ may need to be turned on its head for Pakistan’s high-net worth individuals. Officials at the Anti-Money Laundering (AML) cell of the Intelligence and Investigation-Inland Revenue suspect that some 2,785 people may be guilty of fleecing the country of a whopping Rs102 billion for tax year 2016 alone, by declaring cash injections and assets as ‘gifts’ from relatives either out of the tax net or with no known source of income. Under Pakistani law, money or assets received in the form of gifts don’t fall under the tax net. Yet the authorities are suspicious and with good reason. The 18th slogan had become a battle cry for American settler colonists in their fight against taxation by the British Parliament in which their interests were not represented. The idea was that citizens should pay due taxes to a political authority representing their interests. In Pakistan, representation of interests throughout various corridors of power has never been much of a problem for citizens of high-net worth in terms of assets and income. However, with the country’s tax-to-GDP ratio hovering around 10 percent at least since the 1970s — when the latest tax collection capacity has been estimated at around 22 percent of GDP — it is apparent that Pakistan’s wealthy have not been keen to reciprocate. Yet even if the AML cell does conclude that those under investigation are guilty – that does not give us the complete picture. Pakistan’s tax evasion problem runs much deeper. According to the latest report by the US State Department’s International Narcotics Control Strategy, Pakistan loses around $10 billion annually to trade-based money laundering. A concerted effort is needed to tackle this issue, starting with strengthening of the tax collection infrastructure as well as accountability of tax officials. A plan evolved with widespread political consensus on documentation of the economy needs to figure prominently in this effort. *