No amnesty scheme for offshore companies’ owners

ISLAMABAD: At a time when the government is considering granting extension in tenure of the incumbent Chairman Dr Mohammad Irshad on the eve of his retirement during third week of April 2017, both the government and FBR have distanced themselves from preparing controversial amnesty scheme for benefiting those owning offshore companies abroad.

The incumbent chairman of FBR is going to touch age of superannuation on April 23, 2017 and relevant authorities have been directed by the government to prepare draft summary for seeking approval of PM for granting extension in tenure of Dr Mohammad Irshad till presenting of next budget for 2017-18 and its approval from the Parliament.

The official circles are tight lipped on both these developments as when The News contacted FBR’s spokesman Dr Iqbal for seeking his comments, he said that they did not even know about any tax amnesty scheme. To another query regarding preparation of summary for extending the tenure of chairman FBR, he said that he did not have knowledge about any such development.

On proposed amnesty scheme, the sources said that Prime Minister Nawaz Sharif had recently visited Karachi wherein business tycoons demanded of the premier to come up with such amnesty scheme benefiting all those who had invested abroad.

Without issuing any formal notification, it was decided to constitute a committee under chairmanship of Governor Sindh Mohammad Zubair for preparing consensus draft for the proposed amnesty scheme. So one firm had prepared a draft which was basically a wish list containing many controversial proposals such as giving incentives by proposing zero tax for those who had invested money abroad five years back.

The proposed rate ranges between 2 to 20 percent depending upon the timeframe of making investment abroad.

Pakistan’s law enforcing agencies including NAB has been undertaking inquiry for providing consultancy to certain companies who obtained exemption certificate from the central bank at the cost of national exchequer. The official circles believed that deliberate leaks were made to prepare ground for this controversial amnesty scheme. Finance Minister Ishaq Dar also told his close confidants that he did not know about any such scheme.

Earlier, the government had thought to introduce amnesty scheme for offshore companies but politicians and bureaucrats would be barred from availing this facility.

With OCED’s Multilateral Taxation Agreement for moving against tax evasion and bilateral agreement with Swiss authorities for ensuring access to bank accounts have enabled FBR to take stern actions against evaders but such scheme should not be aimed at giving clean chit at the cost of national exchequer.

Any proposal for benefiting owners of offshore companies should not discourage those who have paid their due taxes fully and honestly in Pakistan so amnesty can be considered but with certain carrot and stick policy aiming to collect more taxes who had deliberately kept their money abroad.