Imran’s hypocrisy

It was only recently when Imran Khan, castigating the PML-N leadership for having offshore companies, said: “There are only two reasons for having or forming offshore companies: to hide ill-gotten wealth and, ii) to hide taxes.” After having been found to be involved in forming an offshore company as far back as 1983, Imran said with a straight face “that the company was formed only to hide taxes in Britain – and not in Pakistan”. As if hiding taxes was a crime only in Pakistan.

Not that one holds any brief for the ruling party, but a legitimate question to ask would be: why did Imran keep mum about owning an offshore company till it was revealed by the press? If the PM’s family has offshore companies, Imran wants his head on a platter without giving him a chance to defend himself. But if Imran, his sister and cronies are found to have similar companies, then that is no big deal. Moreover, Imran’s request of constant change of forums of inquiry – from the commission headed by the chief justice to NAB – is also perplexing. Any forum whose findings are not to Imran’s liking will be at the receiving end of his follower’s abuses.

Akbar Jan Marwat

Islamabad

*****

Soon after the Panama leaks, Imran Khan tweeted: “Only reason ppl open offshore accts through Panama is to either hide wealth, esp ill-gotten wealth, or to evade tax or both.” Now that Imran has admitted to owning an offshore company and justified having it to avoid paying taxes, his tweet needs a correction. It should include one main reason for the formation of offshore companies – ‘tax avoidance’. There is a clear difference between tax evasion and tax avoidance. Tax evasion is a crime but tax avoidance is perfectly legal.

After the Panama leaks, an impression has been created in the media as if all offshore companies are formed to hide ill-gotten wealth or evade taxes. That is not always true. People need to be explained that offshore companies are mainly formed because they are tax efficient. In London, there are a lot of builders that are working under the umbrella of offshore companies to save income tax. The UK government allows builders to work under the umbrella of offshore companies. Although it loses tax on the income of these builders, yet it allows them to operate because they create huge economic activities in the country. So, offshore companies provide a win-win situation for both the UK government and builders. However, it is important to clarify that offshore companies formed to hide ill-gotten wealth and evade taxes are illegal.

Ejaz Ahmad Magoon

Lahore