FBR sends notices to owners of 600 offshore companies

ISLAMABAD: Pakistan’s tax authorities have sent out notices to around 600 owners of offshore companies, including the family members of Prime Minister Muhammad Nawaz Sharif whose names appeared in the PanamaLeaks.

“Yes, we have dispatched tax notices to all those individuals/companies who own offshore companies and their names had appeared in the Panama Papers,” a top official of the Federal Board of Revenue (FBR) confirmed to The News on Saturday.

The FBR dispatched tax notices during the last couple of days and all of them would receive these notices in the next 24 to 48 hours.

The son and daughter of PM Nawaz Sharif are also among those whom notices have been sent.

Talking to The News, FBR spokesman Dr Iqbal confirmed that notices had been dispatched to all those mentioned in the Panama Papers.

He said the number of total sent notices would be known when all would get these dispatches.

“We have issued notices to all of them in the cases where their names were shown in the Panama Papers,” he added. However, the sources said the FBR had contacted the Nadra where postal addresses were not available with it.

Federal Minister for Finance had written letters to the SBP, FBR and SECP to assist the upcoming Inquiry Commission by undertaking an investigation into the Panama Papers by May this year. As the establishment of commission got delayed, so the FBR decided to move ahead against the owners of offshore companies.

The FBR’s Directorate General of Intelligence & Investigation Inland Revenue (IR) has issued notices to persons whose names have been mentioned in the reports to obtain their version regarding the reports so as to authenticate the reports.

The notices were dispatched under Section 216 (notice to obtain information or evidence) of the Income Tax Ordinance 2001 to verify information with the FBR’s database.

The FBR wanted to get the viewpoints of the offshore companies’ owners. The persons concerned have been asked to explain within 15 days if they are owners of offshore accounts, source of investment and whether the same have been declared in their income tax returns.

Another official said the notice under Section 176 of the Income Tax Ordinance 2001 was just a hearing or third parry notice.

Detailed information has never been sought under Section 176. When the notice under Section 176 has been served, the process of investigation gets started.

Therefore, specific details would be asked during the course of hearing with the person concerned or his appointed lawyer.

However, the commissioner shall have the same powers as are vested in a court under the Code of Civil Procedure for investigation of the matter, he added.

Under Section 216 of the Income Tax Ordinance 2001, the commissioner may, by notice in writing, require any person, whether or not liable for tax under the Ordinance to furnish to the Commissioner or an authorised officer, any information relevant to any tax leviable under this Ordinance as specified in the notice; or attend at the time and place designated in the notice for the purpose of being examined on oath by the Commissioner or an authorized officer concerning the tax affairs of that person or any other person and, for that purpose, the Commissioner or authorized officer may require the person examined to produce any accounts, documents, or computer-stored information in the control of the person .

The commissioner may impound any accounts or documents produced and retain them for so long as may be necessary for examination or for the purposes of prosecution.