The list of names in Paradise papers is extensive and needs some time to be fully examined by investigators of the FBR. The FBR will examine names of Pakistani nationals appearing in the Paradise Papers. Once the list has been properly securitized, tax authorities would designate one of its departments to issue notices to the owners of offshore companies under relevant provisions of the Income Tax Ordinance 2001.
The FBR will also investigate source of funds held outside Pakistan and payment of taxes in Pakistan on such sources if funds have been transferred from Pakistan. In case of the Panama Leaks, the FBR had issued notices under section 176 of the Income Tax Ordinance 2001 to the owners of offshore companies. There is a likelihood that the assignment would be given to the Directorate General of Intelligence and Investigation Inland Revenue (IR) for this purpose, as it has ample experience of dealing with the owners of companies disclosed in the Panama Papers.
Sources added that the FBR will start the exercise based on available data and within the legal framework empowering the FBR to investigate the matters. The Paradise Papers is a database comprising around 13.4 million documents, which reveal over 25000 companies owned by the world's rich and influential individuals. The list also contains names of Pakistani nationals.
Directorate General of Intelligence and Investigation Inland Revenue (IR) had issued notices to owners of companies in the Panama Leaks seeking information about ownership of companies and details about their tax matters, etc. The FBR had issued notices to the owners of offshore companies under relevant provisions of the Income Tax Ordinance 2001.
Copyright Business Recorder, 2017