ISLAMABAD: The Federal Bureau of Revenue (FBR) has informed the Supreme Court that the board would cooperate with the commission formed to probe Panamagate.
The board also said that besides waiting for the outcome of the political dialogue on formation of judicial commission or determination of terms of reference on Panama leaks, its investigators are tasked with the assignment of ascertaining complete information of those named in Panama Papers, adding investigators are contacting them through various sources.
FBR Chairman Nisar Muhammad Khan assured the court of cooperation through a statement.
The statement is submitted rejecting the allegations of Pakistan Tehreek-e-Insaf Chairman Imran Khan, which he levelled in his original petition, wherein he sought Prime Minister Nawaz Sharif’s disqualification.
Imran Khan’s petition stated that the FBR chairman had failed to discharge his duty as per law in relation to various financial irregularities/misconduct alleged to have been committed by Nawaz and his family.
He said the FBR had done nothing so far and perhaps that is one of the grounds to invoke the original jurisdiction of this court, which is Article 184 (3).
Nisar said in his reply that the legal provisions and mechanism for making investigations into such types of financial issues has been provided in the Income Tax Ordinance (ITO) 2001 and rules regulations issued from time to time.
The reply stated that FBR investigators succeeded in acquiring information regarding whereabouts and addresses of 336 among 600 individuals stated to be named in Panama leaks.
He also said the information of those named in Panama Papers was incomplete as some of the names were incomplete while most of the names were wrongly spelled.
Addresses in majority of cases (only 181 addresses had been published) were incomplete and such vital information as passport, CNIC numbers, dates of birth in respect of the purported investment holders was not available, the reply added.
“However, addresses with respect to 108 individuals/entities are still missing and all-out efforts are being made to trace out the same and notices were issued, under section 176 of ITO 2001 in the first week of September requiring the individuals named in Panama Papers to provide the details of their investments in the offshore companies, the properties owned by these offshore entities and the income arising there from, to as many as 336 individuals allegedly holding investments in offshore entities,” it further stated. According to response from 336 received until October, 34 adjournments were sought while eight people died and 21 investors admitted to have offshore investments. Likewise 24 people, who were named in Panama Papers, denied the allegations and 11 people replied miscellaneously.
Similarly 13 people provided information, six people residing out of country, 11 people raised the question over jurisdiction and five people are non-residents.
It added that reminders have been issued to 92 people and FBR is waiting for their response while 115 did not respond.
The FBR said that it would issue penalty notices under Section 182 of ITO 2001 if responses are not received. The reply also said that Finance Minister Ishaq Dar ordered the FBR to communicate with the governments of Panama, Bahamas, British Virgin Island, Samoa, Anguilla, Seychelles, Mauritius, Nieu and Jersey through the Foreign Affairs Ministry and FBR approached nine tax havens.
However, the Federal Investigation Agency (FIA), through a separate statement filed by Additional Director Law Pir Jaffar Shah, submitted that so far no complaint in respect of Panama leaks has been filed by any person.
It also stated that the FIA has no jurisdiction to initiate legal action against the holders of public office being not defined in the FIA Act 1974 as well as Prevention of the Corruption Act 1947.
It said that Foreign Exchange Act 1947 is on the schedule of FIA Act to take action against any individual involved in money sending abroad or in Pakistan from abroad through unlicensed money-changers hundi/hawala system.
However, FIA assured the court that the agency would extend all possible assistance if any matter is entrusted to it by the court.