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`Law bars FBR from probing offshore firm owners`

By Kalbe Ali 2016-05-11
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday expressed its inability to investigate tax-related cases against most of the Pakistanis named in the Panama Papers, putting the blame on the existing income tax regime that the authority says bars it from opening cases dating back to 2010 or earlier.

Speaking before the Senate Standing Committee, FBR`s Inland Revenue PolicymemberRehmatullah Khan Wazir said the tax-collecting body was not empowered to open cases of filers and non-filers of income tax going beyond six and five years, respectively.

Most of the offshore companies of Pakistanis named in the world`s biggest-ever data leal(s were established before 2010, therefore the FBR can neither probe the matter nor impose tax on them if they were based on non-tax-paid money, he informed the committee.

He also informed the committee that some of the offshore companies identified in the leaks were established with the tax-paid money.

`At the same time, nonresident Pakistanis people who have lived for at least 180 days outside the country are not subject to Pakistani taxes.` he added.

On a question by Senator Kamal Ali Agha, the FBR official said parliament amended the law in 2010 on a government-sponsored bill.