Actual worth of PTI top leader’s company over Rs431 million

Aleem Khan has shown company’s worth as Rs2.9m in FBR papers

ISLAMABAD: Although, the Pakistan Tehreek-Insaf (PTI) stalwart Aleem Khan has declared his offshore company mentioned in the Panama Papers at an astonishingly low worth of Rs2.9 million despite admitting that the company owns four flats in a posh London area, the actual worth of his company is Rs431.8 million, according to a third party evaluation report.

According to estimates of UK’s famous property website Zoopla, the current total worth of four flats owned by Aleem Khan’s company is £2.85 million (Rs431.8 million). According to http://www.zoopla.co.uk, Aleem Khan’s Hexam Investment owns Flat No 1102 Balmoral Apartments, 2 Praed Street, London W2 1JN which was bought on 27th November 2006 for Rs153 million.

The company also owns 562 Park West, Edgware Road, London W2 2RA which was bought for Rs45.3 million on 11 October 2007 and is currently valued at Rs73.1 million. Another property owned by the company is flat No142 Marble Arch Apartments, 11 Harrowby Street, London W1H 5PQ which was bought by Aleem Khan on 11 September 2007 for Rs44.1 million and the current price is Rs106.5 million. The fourth property owned by Aleem Khan’s offshore company is Flat 305 West End Quay, London W2 1JB which was bought on 19th October 2007 for Rs61.1 million and currently valued at Rs98.8 million.

Talking to The News, Aleem Khan admits that the worth of his four flats is way above Rs2.9 million mentioned in his FBR papers but he justifies understatement in his assets claiming that he only declared the initial capital of the company in his papers.

However, tax experts believe under the law a Pakistani resident is bound to declare all his assets around the world in his/her wealth statement. “It is obviously impossible to buy or even mortgage four flats in London with a Rs2.9 million company. The person in question would definitely have paid the upfront cost for the mortgage from his other sources or borrowed from someone else. The onus is on him to disclose the source and make it public to establish his bonafide,” said Dr Ikram-ul-Haq a renowned tax expert and a Supreme Court lawyer. “He should have also mentioned liabilities against the said property as admittedly these are mortgage properties and in mortgage his own equity of 25% should have reflected in his assets,” Dr Ikram said.

An FBR official on the condition of anonymity told The News that it was mis-declaration on the part of the PTI leader and the FBR will take action in this connection.

However, while contacted by The News, Aleem Khan said he declared his initial paid up capital of Rs2.9 million in his papers as he was not bound to update the current worth of the company in his papers. “Yes each flat could cost up to £500,000 and the total value of the four flats could be upto £2 million (Rs301 million) but we must keep in mind that it’s a mortgage property and I had deposited only 25% of the price with the bank as upfront payment,” he said. “Even if I have capital worth billions I won’t show all of it when buying a company as initial paid up capital,” he argued.

However even the 25% is more than Rs75 million as opposed to Aleem Khan’s declaration of Rs2.9 million.The PTI leader claimed that the money was sent through legal channels to the United Kingdom and since he is involved in property business abroad some of his customers made payments abroad. He said the actual value of his foreign assets will only be ascertained when he will try to sell it or borrow loan against it.

To another question about not declaring his ABN-Amro bank account in his asset statement in Pakistan, Aleem Khan said the same bank has merged and renamed as Faisal Bank which is duly mentioned in his assets.

Aleem said he should be appreciated for declaring his offshore company. “Out of our 1,000 parliamentarians, around 800 would have offshore properties but 90pc of them never declare the same in their asset statements,” he claimed.

However, tax experts are raising questions about the sources of his additional funding and mode of transfer of money from Pakistan. “If he obtained money from overseas Pakistanis in UK, then the question is whether he declared that money in UK?” asks Dr Ikram.

According to Panama Papers Aleem Khan’s is sole owner of an offshore company Hexam Investment Overseas Limited which has so far purchases eight properties in London. He has declared the ownership of the offshore company in his assets declaration submitted to the Federal Board of Revenue and in the nomination papers filed for contesting the by-elections from NA-122.

In his tax returns shared with The News, Aleem has described the worth of his share in this offshore company as only Rs2.93 million. He insists his wife is also a shareholder.

Following were the properties purchased or being negotiated for purchase in 2007-8 as found in the documents: (1) Flat 1102 Balmoral Apartments, 2 Praed Street, London, W2 1JN; (2) 562 Park West, Edgware Road, London, W2 2RA; (3) Flat 142, Marble Arch Apartments, 11 Harrowby Street, London W1H 5PQ; (4) Flat A, 305 West End Quay, London W2 1JB; (5) 569 Park West Place, London W2 2RA; (6) 369 Water Gardens, Burwood Place, London W2 2DJ; (7) 43 Davenport, Southwick Street, London W2 2DJ; and (8) 5 Water Gardens, London, W2 2Da. However in response to written questions by The News, Aleem Khan only admitted owning the first four properties the value of which is Rs431.8 million.