Offshore companies: only 133 individuals responded to FBR notices, Supreme Court told

A seven-page concise statement of Federal Board of Revenue revealed on Wednesday that the apex body for collection of taxes has issued notices to as many as 336 Pakistani individuals under Section 176 of ITO 2001, allegedly holding investments in offshore entities of Panama Leaks.
Submitting concise statement before Supreme Court in Panama Leaks case, chairman FBR Nisar Muhammad Khan disclosed that out of total 336 individuals, 133 individuals have so far responded to the notices.
He said that investigators, after considerable efforts, succeeded in acquiring information regarding whereabouts and addresses of 336 individuals stated to be named in Panama Leaks since the media information on Panama Leaks was incomplete in a number of ways. He said that details of names, addresses in majority of cases (only 181 addresses have been published) were incomplete whereas vital information as passport, CNIC numbers, dates of birth of the purported investment holders, were not available.
The report added that addresses with respect to 108 individuals/entities are still missing and all-out efforts are being made to trace out the same.
"For the above mentioned reasons, FBR investigators, tasked to ascertain complete information, contacted various sources, besides waiting for the outcome of political dialogue on constitution of Judicial Commission/determination of TORs on Panama Leaks", the report said.
However, after obtaining sufficient data, FBR initiated formal proceedings in accordance with the provisions of ITO 2001 against the individuals.
The report unfolded that the notices were issued during first week of September 2016, requiring the individuals named in Panama Papers to provide details of their investments in the offshore companies/trusts, the properties owned by these offshore entities and the income arising there from to as many as 336 individuals allegedly holding investments ill off-shore entities.
Chairman FBR said that in accordance with the provision of the ITO 2001, FBR is taking the steps including issuing reminders and if response is still not received, penalty notices u/s 182 of ITO 2001 will be issued. The report added that in case of persistent non-response, provisions relating to prosecution would be invoked.
"132 non-filers or irregular filers among Panama and Bahamas leaks particulars have been forwarded to FBR''s field formations concerned across the country for enforcing immediate filing of their returns and wealth statements", the report said.
FBR chairman said that on October 17, 2016, after a meeting with Deputy Governor State Bank of Pakistan, senior officers of SECP and FBR, Federal Finance Minister Ishaq Dar asked the FBR to communicate with the governments of Panama, Bahamas, British Virgin Islands, Samoa, Anguilla, Seychelles, Mauritius, Nieu, Jersey, through the Ministry of Foreign Affairs for obtaining necessary information and documentary evidence from the revenue authorities of these tax havens.
FBR chairman said that on October 17, 2016, after a meeting with deputy governor State Bank of Pakistan, senior officers of SECP and FBR, Federal Finance Minister Ishaq Dar asked FBR to seek information and documentary evidence from the revenue authorities of Panama, Bahamas, British Virgin Islands, Samoa, Anguilla, Seychelles, Mauritius, Nieu, Jersey, through Ministry of Foreign Affairs.
He said that FBR has approached nine tax havens through Ministry of Foreign Affairs for obtaining details on those involved in holding offshore companies, and replies in this regard are still awaited.
"With surface of Bahamas Leaks in media on 22.09.2016, the Finance Minister convened a meeting the same day and directed FBR, SECP and SBP to immediately initiate inquiry", the report said.
"Investigation conducted by the FBR investigators resulted in issuance of notices, under section 176 of ITO 2001, to 110 individuals named in Bahamas Leaks. Efforts are underway to trace out particulars/whereabouts of the remaining 32 individuals. Information provided by SECP also established that 43 individuals named in Bahamas Leaks are found to be directors in 148 Pakistan companies", the report concluded.