News

April 22 , 2017

Panama cases referred to relevant officers: FBR


ISLAMABAD: Tax collection machinery on Friday made it public that Directorate General Intelligence and Investigation (I&I) Inland Revenues could not exercise legal powers under Sections 114, 116 and 122 of the Income Ordinance 2001, under SRO 115/2015, for further probing the PanamaLeaks and these cases were now transferred to relevant field formation offices with the approval of the FBR chairman.

In its annual report 2016 launched by FBR’s Directorate General of I&I, IR on Friday disclosed that as this department (Directorate General I&I, IR) cannot exercise the legal powers under section 114, 116 and 122 of the Income Tax Ordinance 2001, under the SRO 115/2015 which governs the jurisdiction and function of this Directorate General, it was decided with the approval of the Chairman (FBR) that these cases (Panama Leaks) be transferred to relevant field formations for further probing, investigation and conclusion of the cases. Accordingly, the cases were transferred to the FBR’s field formation”, the annual report states.

However, the FBR on Friday claimed that their probe into Panama Leaks was underway and the Joint Investigation Team (JIT), going to be established under Supreme Court orders, would be extended full cooperation if they sought any assistance from the FBR.

“The limitation of the FBR under the law convinced the Supreme Court of Pakistan for excluding representative of tax machinery from upcoming JIT but if need arises they are ready to extend full cooperation to them,” Special Assistant to PM on Revenues Haroon Akhtar Khan said while talking to reporters here at the FBR’s headquarters on the occasion of launching different projects on Friday.

Flanked by Chairman FBR Dr Muhammad Irshad and other top officials of the FBR, Haroon Khan said that it was good omen for the FBR that the SC did not include FBR’s representative into JIT for probing the Panama case as the FBR’s stance convinced the honorable judges that the income tax law did not permit the tax machinery to open tax cases beyond five year period.

The FBR, he said, has thoroughly completed its investigations and dully submitted its report to the SC. FBR has fulfilled all the legal obligations and submitted record of all investigations pertaining to the 400 Pakistanis having offshore companies in tax heavens.

To another query regarding some negative remarks of the SC judgments regarding the FBR in the Panama case, he said that the tax machinery followed the required process in accordance with the law.

“We are acting in accordance with law,” he said and added that he respected the judgment of the honorable judges of the SC. The negative remarks of the SC, he said, were uttered by them under the context of limitation of the FBR in accordance with the law whereby the FBR cannot open tax cases beyond five year period.

When asked about section 214-A for opening up cases beyond any such limit of five years, the SA to PM said that there was no clear cut authority given under this section and the FBR required to strike a balance on this front because by using such powers no one would be safe in the country.

Regarding downward revision in tax collection target for the outgoing fiscal year, he said that the FBR had faced shortfall of Rs 122 billion because of not passing on burden of POL prices with domestic consumers, reduced GST on fertilizer, pesticides and other relief measures but the government would not slash down its envisaged target of Rs 3604 billion.

To another query regarding obtaining advance income tax, the Chairman FBR Dr Irshad said that installments of tax was done for facilitating the taxpayers however collection through advances was neither done before nor this time such methods would be used to jack up revenue figures for the outgoing fiscal year.

Meanwhile, the DG I&I, IR in its annual report 2016 stated that they had issued notices to 414 individuals appeared into Panama Leaks. During the spanning of proceedings of five months, 250 individuals responded to these notices as 72 admitted for having links with offshore company, 12 died, 55 denied having any links with offshore companies, 39 non residents and evidence produced to this effect, 72 sought adjournment and 10 were issued penalty/show cause notices. There were 84 individuals remained untraceable and 70 could not be identified.

In 70 cases that could not be identified by the FBR and notices could not be served. The FBR sought assistance from NADRA u/s 176 of Income Tax Ordinance 2001vide letter dated 7-11-2016 for finding identities of Panama Leaks, however, NADRA showed its inability to provide identities.

 

Courtesy www.thenews.com.pk


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