$200b stashed abroad: Talks with Swiss authorities will begin in August, says Ahsan
Minister, however, doesn’t say how long it will take FBR to reach deal.
Minister for Planning and Development Ahsan Iqbal. PHOTO: EXPRESS/ZAFAR ASLAM
ISLAMABAD:
As the war of words between the ruling Pakistan Muslim League-Nawaz and Pakistan Tehreek-e-Insaf intensifies, the government announced on Monday that negotiations with Switzerland will begin in August to bring back around $200 billion stashed by Pakistani politicians in Swiss bank accounts.
Responding to a fresh tirade by PTI chief Imran Khan, Minister for Planning and Development Ahsan Iqbal said his government would begin formal negotiations with the Swiss authorities in August.
Imran has alleged that the incumbent rulers have stashed their monies abroad while they were pleading for foreign investment in Pakistan.
In an angry retort, Iqbal alleged that Imran’s party wanted to create political instability in the country ‘at the behest of someone else’. He advised Imran’s party to shun the ‘politics of hatred and provincialism’ that could undermine federalism.
Iqbal said the Federal Board of Revenue will enter into negotiations with the Swiss authorities but he wouldn’t say how long it would take them to reach an agreement.
The Agreement for Avoidance of Double Taxation between Pakistan and Switzerland was last ratified in 2008. It saves individuals and companies from paying income tax more than once as money moves between the Swiss Federation and Pakistan. The cabinet has already given a go-ahead to the FBR to renegotiate a bilateral treaty on double taxation with Switzerland.
Stringent secrecy laws in Switzerland helped its banks invite clients from around the world. From large corporations avoiding tax to government officials taking graft money everyone used these banks to keep offshore accounts.
Since global financial meltdown, Swiss banks came under increasing pressure from United States and European Union to share information. Even India has stepped up efforts to catch tax evaders.
Published in The Express Tribune, June 10th, 2014.
As the war of words between the ruling Pakistan Muslim League-Nawaz and Pakistan Tehreek-e-Insaf intensifies, the government announced on Monday that negotiations with Switzerland will begin in August to bring back around $200 billion stashed by Pakistani politicians in Swiss bank accounts.
Responding to a fresh tirade by PTI chief Imran Khan, Minister for Planning and Development Ahsan Iqbal said his government would begin formal negotiations with the Swiss authorities in August.
Imran has alleged that the incumbent rulers have stashed their monies abroad while they were pleading for foreign investment in Pakistan.
In an angry retort, Iqbal alleged that Imran’s party wanted to create political instability in the country ‘at the behest of someone else’. He advised Imran’s party to shun the ‘politics of hatred and provincialism’ that could undermine federalism.
Iqbal said the Federal Board of Revenue will enter into negotiations with the Swiss authorities but he wouldn’t say how long it would take them to reach an agreement.
The Agreement for Avoidance of Double Taxation between Pakistan and Switzerland was last ratified in 2008. It saves individuals and companies from paying income tax more than once as money moves between the Swiss Federation and Pakistan. The cabinet has already given a go-ahead to the FBR to renegotiate a bilateral treaty on double taxation with Switzerland.
Stringent secrecy laws in Switzerland helped its banks invite clients from around the world. From large corporations avoiding tax to government officials taking graft money everyone used these banks to keep offshore accounts.
Since global financial meltdown, Swiss banks came under increasing pressure from United States and European Union to share information. Even India has stepped up efforts to catch tax evaders.
Published in The Express Tribune, June 10th, 2014.