133 ‘Panama’ individuals reply to FBR notices

PML-N, PTI submit terms of reference in SC today

ISLAMABAD: As the five-judge bench of the apex court is resuming hearing in the Panamagate case on Thursday, the Federal Board of Revenue (FBR) has told the Supreme Court that out of 336 individuals, only 133 have responded to the notices served on them to seek details of their investments in offshore companies.

In pursuance of the court’s directions in the Panama leaks case, FBR Chairman Nisar Muhammad Khan, while submitting a concise statement before the Supreme Court in the Panama Leaks case, said the bureau has issued notices under Section 176 of the Income Tax Ordinance-2001 in the first week of September.



“Till October 31, 115 notices have been undelivered, while 92 reminders have been issued.”

The FBR states that 34 persons have sought time for submitting their replies while 21 persons have admitted having offshore companies.

The FBR chairman submitted that in accordance with the provision of the ITO 2001, the bureau is taking steps – including issuing reminders and if response is still not received, penalty notices under Section 182 of the ITO 2001 will be issued.

The report added that in case of persistent non-response, provisions relating to prosecution would be invoked.

The court was informed that “132 non-filers or irregular filers among the Panama and Bahamas leaks particulars have been forwarded to the FBR’s field formations concerned across the country for enforcing immediate filing of their returns and wealth statements”.

The chairman said on October 17, 2016, after a meeting with the SBP deputy governor, senior officers of the SECP and FBR, Finance Minister Ishaq Dar asked the FBR to communicate with the governments of Panama, Bahamas, British Virgin Islands, Samoa, Anguilla, Seychelles, Mauritius, Niue, and Jersey, through the Ministry of Foreign Affairs for obtaining necessary information and documentary evidence from the revenue authorities of these tax havens.

The chairman said after obtaining the approval of the finance minister on October 18, 2016, the FBR has approached nine tax havens through the Ministry of Foreign Affairs for obtaining details of those involved, saying their replies are awaited.

Similarly, the court was informed that after the Bahamas leaks on September 22, 2016, the finance minister convened a meeting in his office on the same day and directed the FBR, SECP and SBP to immediately initiate an inquiry into the matter.



The court was informed that the investigation conducted by the FBR resulted in the issuance of notices, under Section 176 of the ITO 2001 to 110 individuals who were named in the Bahamas leaks.

The report concluded that efforts are under way to trace out particulars/whereabouts of the remaining 32 individuals. Information provided by the SECP also established that 43 individuals named in the Bahamas leaks are found to be directors in 148 Pakistan companies.

FIA reply

Meanwhile, the Federal Investigation Agency (FIA), while submitting a reply in the apex court, states that under Section 2(e) of the FIA Act 1974, the agency exclusively deals with corruption/corrupt practices of alleged public/government servants (BS-1 to BS-22) relating to the federal government.

“An authorisation to conduct enquiries/investigations against public servants is provided under FIA Rules 2002. The FIA has not been conferred any powers to investigate and prosecute matters relating to the holders of public office.”

The FIA states that it has the authority to take action against any individual involved in sending money abroad or in receiving it in Pakistan from abroad through unlicensed money-changers, but so far no complaint has been received from any person with the FIA.

PTI to give new ToRs

Meanwhile, legal teams of the PML-N and the PTI will submit their terms of reference (ToRs) in the apex court on Thursday.



The PTI legal team held a meeting on Wednesday, wherein Hamid Khan, Naeem Bukhari and Babar Awan gave their input for finalising the ToRs.

A senior PTI leader told The Express Tribune that the PTI will give new ToRs, formulated in view of the questions raised in the petitions.

“We are not giving the ToRs prepared by the joint opposition because their scope has been widened.”

He said that specific questions have been formulated in new ToRs so that investigation into the matter could be completed in the shortest possible period, adding the burden of proof will lie with Nawaz Sharif.

Published in The Express Tribune, November 3^rd, 2016.