Dar spurns JIT findings
Says allegations of tax evasion and misdeclaration of assets baseless
ISLAMABAD:
Finance Minister Ishaq Dar on Tuesday rejected findings of the Panamagate Joint Investigation Team regarding tax evasion and misdeclaration of assets against him.
“I am not a tax evader and the allegation of misdeclaration of assets is also baseless and mala fide,” said Dar while explaining his position a day after the JIT raised serious questions over the financial integrity of the country’s finance minister.
He was addressing a press conference along with Federal Minister for Railways Khawaja Saad Rafique.
Responding to the JIT findings that Prime Minister Nawaz Sharif was the chairman of a Dubai-based company, FZE Capital, the finance minister claimed that the PM became the chairman only for visa purposes.
The JIT report shows that this fact was not disclosed in any statutory returns or declaration before the authorities in Pakistan.
In a first detailed explanation from any member of the ruling elite, Dar said all his declared assets were justified and perfectly reconciled. He claimed that he did not know that the Federal Board of Revenue (FBR) had not provided his complete tax record to the JIT.
Discrepancies in JIT report shall be contested in SC, says Dar
“After the JIT informed me during my appearance on July 3 that the FBR had not provided the tax record, I asked the FBR chairman [Tariq Pasha] to take disciplinary action against the FBR officials,” he said.
In its final report submitted to the Supreme Court, the JIT has written that “limited tax record of Ishaq Dar was available with the FBR. His income tax returns are missing from 1981-82 till 1985-86. Wealth statements were not provided by FBR from assessment year 1994-95 till 2001-02 and tax year 2002-03 till 2007-2008 despite repeated requests”.
“Ishaq Dar did not file income tax returns from 1981-82 to 2001-02. Being an expert in economics and part of ruling elite is, prima facie, tantamount to tax evasion,” according to the JIT.
The JIT further says that “in his wealth statement in 2008-09, an increase of 91 times in his assets was seen from Rs9.11 million to Rs831.7 million. This exorbitant leap in assets is not clarified, supported through any plausible financial documents”.
Dar said that after his appearance, he provided tax returns for the period of 2003 to 2006 to the FBR. He also said that his tax record for the period of 1981 to 2002 was in custody of the National Accountability Bureau (NAB). He said that the FBR chairman retrieved this record from NAB custody and handed it over to the JIT on July 8.
Maryam Nawaz ‘beneficial owner’ of London flats
The finance minister also said that the JIT did not confront him about its claim of 91 times increase in his assets during his appearance on July 3.
The JIT report states that Dar did not declare source of his 5.5 million pounds investments in Baraq Holdings Limited (investment with Shaikh Nahyan). “Prime facie, this capital became the source to build his empire in Dubai as well as his assets in Pakistan,” the JIT added.
However, Dar said that the 5.5 million pounds was not an investment rather his earnings as salary in his capacity as chief executive officer of the UAE fund. He added that out of that amount, he gave 4.97 million pounds to his sons as loans who subsequently returned the amount through banking channels, which was declared in his returns.
“Analysis of financial details of his assets and record of FBR reflects dichotomies on misdeclaration of assets is tantamount, prima facie, to hiding assets and tax evasion,” according to the JIT report.
Dar also rejected the JIT’s findings that the purpose of Rs169.3 million donations was aimed at evading taxes. “I had set up Hajveri Trust in 2005 that is taking care of 92 orphan children,” he explained.
According to the JIT findings, these donations gave him tax exemptions while keeping in such huge amounts within his own access, amounts to tax evasion. “Available record of FBR reflects that Ishaq Dar possesses, prima facie, assets disproportionate and beyond known source of means,” says the JIT report.
But Dar said that allegations of assets beyond means were “false and mala fide”.
Finance Minister Ishaq Dar on Tuesday rejected findings of the Panamagate Joint Investigation Team regarding tax evasion and misdeclaration of assets against him.
“I am not a tax evader and the allegation of misdeclaration of assets is also baseless and mala fide,” said Dar while explaining his position a day after the JIT raised serious questions over the financial integrity of the country’s finance minister.
He was addressing a press conference along with Federal Minister for Railways Khawaja Saad Rafique.
Responding to the JIT findings that Prime Minister Nawaz Sharif was the chairman of a Dubai-based company, FZE Capital, the finance minister claimed that the PM became the chairman only for visa purposes.
The JIT report shows that this fact was not disclosed in any statutory returns or declaration before the authorities in Pakistan.
In a first detailed explanation from any member of the ruling elite, Dar said all his declared assets were justified and perfectly reconciled. He claimed that he did not know that the Federal Board of Revenue (FBR) had not provided his complete tax record to the JIT.
Discrepancies in JIT report shall be contested in SC, says Dar
“After the JIT informed me during my appearance on July 3 that the FBR had not provided the tax record, I asked the FBR chairman [Tariq Pasha] to take disciplinary action against the FBR officials,” he said.
In its final report submitted to the Supreme Court, the JIT has written that “limited tax record of Ishaq Dar was available with the FBR. His income tax returns are missing from 1981-82 till 1985-86. Wealth statements were not provided by FBR from assessment year 1994-95 till 2001-02 and tax year 2002-03 till 2007-2008 despite repeated requests”.
“Ishaq Dar did not file income tax returns from 1981-82 to 2001-02. Being an expert in economics and part of ruling elite is, prima facie, tantamount to tax evasion,” according to the JIT.
The JIT further says that “in his wealth statement in 2008-09, an increase of 91 times in his assets was seen from Rs9.11 million to Rs831.7 million. This exorbitant leap in assets is not clarified, supported through any plausible financial documents”.
Dar said that after his appearance, he provided tax returns for the period of 2003 to 2006 to the FBR. He also said that his tax record for the period of 1981 to 2002 was in custody of the National Accountability Bureau (NAB). He said that the FBR chairman retrieved this record from NAB custody and handed it over to the JIT on July 8.
Maryam Nawaz ‘beneficial owner’ of London flats
The finance minister also said that the JIT did not confront him about its claim of 91 times increase in his assets during his appearance on July 3.
The JIT report states that Dar did not declare source of his 5.5 million pounds investments in Baraq Holdings Limited (investment with Shaikh Nahyan). “Prime facie, this capital became the source to build his empire in Dubai as well as his assets in Pakistan,” the JIT added.
However, Dar said that the 5.5 million pounds was not an investment rather his earnings as salary in his capacity as chief executive officer of the UAE fund. He added that out of that amount, he gave 4.97 million pounds to his sons as loans who subsequently returned the amount through banking channels, which was declared in his returns.
“Analysis of financial details of his assets and record of FBR reflects dichotomies on misdeclaration of assets is tantamount, prima facie, to hiding assets and tax evasion,” according to the JIT report.
Dar also rejected the JIT’s findings that the purpose of Rs169.3 million donations was aimed at evading taxes. “I had set up Hajveri Trust in 2005 that is taking care of 92 orphan children,” he explained.
According to the JIT findings, these donations gave him tax exemptions while keeping in such huge amounts within his own access, amounts to tax evasion. “Available record of FBR reflects that Ishaq Dar possesses, prima facie, assets disproportionate and beyond known source of means,” says the JIT report.
But Dar said that allegations of assets beyond means were “false and mala fide”.