ISLAMABAD: Former Finance Minister Ishaq Dar has alleged that the Panama JIT had lied to the apex court in his case while the NAB in a deceitful action had avoided sharing with Supreme Court the outcome of its 16 years’ probe against him in “assets beyond known sources” to make a “politically fabricated” case against him.
In a detailed note, emailed to The News after he was approached to get his side of the story, Dar said that the JIT had falsely reported to the Supreme Court that it did not hold Dar’s tax records comprising 20 years.
Dar, who is presently absconder in NAB’s latest reference, said that the JIT had lied to the Supreme Court. He explained that on the day of his appearance before the JIT on Monday 03rd July 2017, he was informed by the JIT that the FBR had failed to provide it with Dar’s FBR Tax Returns covering the tax years ending 30th June 2003 to 30th June 2008, and FBR tax returns prior to 30th June 2003.
Dar said that he had informed the JIT that he could provide personal copies of his FBR Tax Returns for the tax years ending 30th June 2003 to 30th June 2008 in order to assist the investigation. Subsequently, he said, he sent the same by hand to the JIT with a covering letter, from his own personal copies by 8.30pm on the same day, i.e. 03rd July 2017. Dar said that had received an acknowledgement of receipt from the JIT by 8:55pm on the same day.
Dar added that even the FBR through its letters on 07th July 2017 had also informed the JIT that the old records of Dar, prior to the year ending 30th June 2003, had been located at NAB. The FBR took immediate steps to retrieve the said old record from NAB and submitted the same to the JIT on 08th July 2017.
However, Dar lamented, in its final report submitted to the SC the JIT falsely reported to that it did not hold Dar’s tax records comprising 20 years. This very lie of the JIT, Dar insisted, led to false allegations of “assets beyond known sources”. Dar said that he never missed filing of Tax Return in 34 years ending 30th June 2017. He reiterated that the complete record of his tax history was provided to JIT by him and the FBR on 03rd July and 7/8th July 2017 respectively.
He said that the finding of the JIT that he had an “exorbitant” increase in his assets and that source of funds/income and details were not furnished despite repeated requests / opportunities, is false and baseless for the following reasons: i) The previous investigation by NAB which covered 22 years to 30th June 2007 and the Tax Returns, together with ECP Statement of Assets and Liabilities for relevant years, were found in order and Assets matched with the declared sources till 30th June 2007 on which date Dar’s Net Worth was Rs899m. Thereafter, the Net Worth reduced to Rs. 882m and Rs. 832m in years ended 30th June 2008 and 2009 respectively. ii) Furthermore, JIT misreported in preamble to findings that Dar’s assets were Rs. 834m for year ended 30th June 2010 and Rs. 854m for year ended 30th June 2011 as the true figures were Rs. 809m and Rs. 569m for the respective years which clearly indicate decline and not increase from Rs. 832m for year ended 30th June 2009. iii) As for non-furnishing of tax record is concerned, same is untrue as explained.
Dar said that his assets and record for continuous 34 years with FBR/ECP reflect no dichotomies and mis-declaration of assets or hiding of assets and tax evasion as reported by JIT.
He added that the amount indicated in JIT’s finding was duly reported in ECP Return for year ended 30th June 2005 from where the same figure has been picked by JIT. The amount is his credit balance representing foreign professional earnings less his drawings.
He explained that he was a tax non-resident in Pakistan for 6 tax years ending 30th June 2008. “All documentary evidence of said foreign earnings had been provided to NAB in their previous investigation which was closed after due process and was found in order” he said adding, when ha had resigned from UAE in 2008, the then unpaid credit balance of £4.97 Million was given as loan to his son who had returned this gradually between 2009 and 2014 through proper banking channel.
All transactions, he said, have been duly reported in FBR Tax Returns and ECP Statements, despite legal exemption of disclosure of foreign income while tax non-resident in Pakistan, and were bona fide and lawful.
Dar said that the JIT did not understand or maliciously reported the proper legal relationship between him and Baraq Holdings, in which he was paid a professional remuneration. The JIT, he said, had improperly presumed that income as an investment by him.
Regarding his donation of Rs 169.27m to charity in the period from 01st July 2009 to 30th June 2016, he said that he donated PKR 91.21 million to the Hajveri Trust and the Hajveri Foundation which run a full-time orphanage house, free dialysis arrangement for poor patients, educational support for deserving students, food rations to thousands of needy people every year, financing of marriages of poor girls etc. The remaining amount (Rs50m), he said, was donated to the Relief Fund for the IDPs (Internally Displaced Persons) and the fund was used to construct a Kidney Hospital in Swat as very large number of residents, having kidney issues had to travel to Peshawar or Islamabad for their treatment, Relief Funds for the flood victims (Rs. 20m) and contributions to the Senate and National Assembly employees’ Welfare Funds etc.
He said that he made all these charitable donations from his lawful, bona fide and declared income, and duly accounted for in his FBR Tax Returns and Wealth Reconciliation Statements. Dar added that he did not claim exemptions from inclusion in total income on account of these donations.
He said that the JIT finding is primarily whimsical and presumptive mainly based on a lie- non-filing of tax returns by Dar for 20 years.
Regarding NAB’s failure to inform the SC about the fate of the investigation pending against him, Dar said that NAB had previously commenced an in-depth investigation against him on 1st February 2000, following a military coup in October 1999, and ultimately covered the 22-year period from 1st July 1985 to 30th June 2007 into both his known sources of income and resultant assets.
During this investigation, Dar said that he provided copies of his FBR Tax Returns, income tax assessment orders and the Wealth Reconciliation Statements for the 22 years commencing from 01st July 1985 to 30th June 2007 inclusive; his ECP Statements for the years ending 30th June 2003 to 30th June 2007 inclusive; Certificates of his Foreign Income for the tax years in which he was tax non-resident in Pakistan; and copies of foreign bank remittances made by him to Pakistan covering the relevant tax non-residency years.
Following its investigation, he said that NAB had concluded on 15th July 2016 that Dar’s income and resultant assets for the aforementioned period were in order and in accordance with his FBR Tax Returns and his ECP Statements and consequently closed the investigation.
NAB’s closure letter dated 06th September 2016, he said, also confirmed that NAB had conducted a detailed examination of Dar’s sources of income and assets and determined that his assets were not beyond his known sources of income.
Dar said that he was given a clean chit by NAB on 06th September 2016 but the Bureau had concealed this fact from the Supreme Court. He said that the NAB has also failed to disclose in its reference and to the Accountability Court the full facts and details of its previous 16-year investigation covering the 22-years period ending 30th June 2007, in respect of which NAB gave him a clean chit in its letter dated 06th September 2016.
He alleged that both JIT and NAB had acted in a mala fide and malicious manner to deliberately make a false, concocted and unfounded reference against him in order to publicly defame him and cause political persecution.
