5-C, 2nd Floor, Khayaban-e-lttehad, Ph'lse VII, Defence Housing Authority, Karachi. ~TRANSPARENCY Tel: (92-21)-35390408, 35390409, Fax: 35390410 ~ INTERNATIONAL-PAKISTAN E-mail: ti.pakistan@gmai l. com Website: www.transparency.org.pk
5111 December, 2016
Honorable Justice Anwar Zaheer Jam ali, Chief Justice of Pakistan, Supreme Court of Pakistan, Constitutional A venue, Islamabad.
Attn: Human Rights Cell
Sub: Prayer for taking SUO MOTO action on Financial NRO in form of perpetual Tax Amnesty Approved by the National Assembly legitimize 97% illegitimate income (collections from Bribery, Bhatta collection, Tax Evasion, Black Marketing Ransom), by paying 3% Tax to FBR.
Respectfully Sheweth,
I. My Lord, the Transparency International Pakistan is requesting the Honorable Court to take action on the financial NRO in form of perpetual and open ended tax amnesty approved by the National Assembly on 30111 November 2016.
2. On November 28, 2016, the Standing Committee on Finance and Revenue ofthe National Assembly approved yet another amnesty scheme facilitating dirty money in real estate sector, despite protest and walk-out by the Opposition. This amnesty is included in Income Tax (Amendment) Act, 2016, approved by the Parliament on November 30, 2016 as Money Bill (Annex-A). 3. This Money Bill, presented in the National Assembly by Senator Muhammad Ishaq Dar, Minister of Finance, Revenue, Economic Affairs, Statistics and Privatization, was passed on 30.11.2016. It cleverly avoids use of any word like, "Tax Amnesty", "Investment", "Whitening Scheme", as has been the case in most of the previous Amnesty Schemes. Announced by the Federal Government. The exact provision providing for 3% amount as advance income tax to legitimize the remaining 97% illegitimate income (collections from Bribery, Bhatta collection, Tax Evasion, Black Marketing Ransom), is called the Income Tax Amendment Act 2016.
4. The most lamentable and shocking aspect of this provision is blatant discrimination under Article 25 ofthe Constitution oflslamic Republic of Pakistan--it is a slap on the face of all honest taxpayers, who have been paying taxes diligently. Gross violation of supreme law of the land has committed by passing Income Tax (Amendment) Act, 2016 under provisions of Para 2, Amendment of Ordinance XLIX of2001, (2), (c); Explanation (2). And Para 4 new section 236W.
i. Para 4. 236W Tax on purchase or transfer ofany immovable property shall at the time of registering or attesting the transfer shall collect from the purchase or transfer advance tax at the rate ofthree percent ofthe amount computed under clause (c) ofsub section (4) ofsection III.
ii. Para 2, Amendment of Ordinance XLIX of2001, (2), (c); Explanation (2) where a person has paid tax under section 236W the person shall be entitled to incorporate in the books ofaccounts the amount computed under this clause in tangible form. 1
A '"lr\t.l DADTI~At..l IU" .. I """"r-•T ,....,.... . ,,..... ,,... .. ,a- • ••· ------· ·--·-·· ~TRANSPARENCY Continuation Sheet No ...... ::;/INTERNATIONAL-PAKISTAN
5. The Income Tax (Amendment) Act, 2016 allows people to keep 97% oftheir tax evaded money, a move which tax and legal experts say grants a free license for earning black money through Bribery, Bhatta collection, Tax Evasion, Black Marketing and Ransom.
6. The Income Tax (Amendment) Act 2016, financial NRO, is not limited to a specific duration, but is timeless and perpetual incentive of Corruption and License to earn illegal money through Bribery, Bhatta collection, Tax Evasion, Black Marketing and Ransom
7. Standard maximum income tax on individuals is 35%. Failing to pay the tax within the given time gets a 100% penalty. You are then liable to pay 70% of your income as tax. Because ofthis new scheme, people will only be required to pay 3% of their income.
8. Another serious burden on honest tax payer, who is already paying tax to FBR annually, and he/she will also have to pay 3% as advance tax to FBR. Is this a penalty imposed on Honest Tax payers by the National Assembly, and is it not a warning to everyone not to be HONST.
9. This tax amendment has the potential to destroy Pakistan' s tax infrastructure completely. It will encourage the tax evaders and the corrupt as it has put premium for being honest.
10. The Income Tax (Amend men)Act 2016 extend yet another amnesty for owners of dirty money by amending section 111 of the Income Tax Ordinance, 2001 giving them facility to pay just 3% of difference of valuation as per FBR's rate and that of local authorities and no question would be asked about the source of money for purchasing property is simply despicable.
11 . On October 18, 2016, the Chairman FBR, Nisar Muhammad Khan, informed the Senate Standing Committee on Finance that no amnesty scheme was under consideration for the real estate sector ('Real estate sector: No amnesty scheme under study: FBR', Business Recorder, October 19, 2016). He asserted: "We must know about the source of difference amount between DC rates and the FBR notified rates". The Chairman FBR revealed that Standing Committee on Finance of National Assembly wanted either one time exemption in respect of difference between the two rates or that a fix tax should be charged. He said the tax authorities were not in agreement to suggestion of National Assembly Standing Committee on Finance of giving one time exemption or imposing a fix tax. While assuring that no amnesty scheme was to be announced, he added that "the FBR has no powers to introduce tax amnesty scheme and if government ever decides to do so, she would route through the Parliament". Chairman FBR claimed that some sectors have been very hard to bring into the tax net and real estate sector under valuation was one of them. The government, he said, introduced some measures to address the issue of under valuation and sector raised objection to them. 12. Haroon Akhtar Khan, Special Assistant to the Prime Minister on Revenue, on November 17, 2016 made a public statement in Karachi that "the Government is against any amnesty" and "after passage of the Finance Bill 2016 property would be brought into the tax net and price of property would be evaluated by third party under notification of State Bank of Pakistan and real estate will no longer be a safe haven for black money". The nation has been deceived and fooled by FBR and Mr. Haroon Akhtar Khan.
13. Mr. Umar Cheema has informed in his article in January 2016 about how the TAX Evaders availing Tax Amnesty Scheme in 2008 transferred his illegitimate money, whitened by FBR in Pakistan, to US and invested in real estate. Annex-B.
2 ~TRANSPARENCY Continuation Sheet No ...... :I INTERNATIONAL-PAKISTAN
i. A budding entrepreneur of a leading business family in Pakistan popped up on the radar ofAmerican tax authorities in 2008 to invest 23 million dollars in the real estate ofNew York. ii. Upon questioning about his funding source, he said the money was brought from Pakistan. The investigators subsequently wrote to Federal Board of Revenue inquiring whether the transferred funds were taxed in Pakistan or not.
iii. An amnesty scheme of the PPP government was in the offing by the time allowing rich Pakistanis to whiten black money by paying only two percent taxes. It could generate only Rs. 2.8 billion; of this amount, Rs. 40 million was contributed by the scion of the rich family facing the inquiry in America. iv. The FBR, instead of using this opportunity to recover the due amount of tax, wrote to its counterpart in the US that the money was taxed in Pakistan without mentioning that the person under question was the beneficiary of an amnesty scheme and had not paid a penny before, revealed an official privy to details. v. Here questions arise about the efficacy of amnesty schemes and whether the latest move by the P ML-N government for luring traders into the tax net through yet another amnesty will be beneficial in the absence ofFBR reforms. Note: In 2008 it is reported that no individual paid Rs. 40 million to whiten US $ 23 million, as the highest payments received was from Media Group Company which paid Rs 24.95 million on unexplained income of Rs 1247.499 million and from Individual Anver Majeed paid Rs 7.44 million to whiten Rs. 372 million tax evasion on account of Salary, and case against ITS 2008 is lingering on in FBR on FTO Orders since last 6 years. Many renowned politician, hoteliers, business tycoons also were benefitted to whiten their illegal money. Annex- C. FBR statement quoted by Umar Cheema in 13.iv above also needs to be probed on the role of FBR as Collection from ITS 2008 was Rs 1542 Million and how one individual alone contributed 2.8%. Annex-D. Also FBR has to explain whether in the 2008 Amnesty Scheme, the illegal money was allowed to be remitted after FBR whitened it? lf not, why FBR did not took action on report from US Government. 14. Transparency International Pakistan on 2.1.2016 also sent a leer to the Honorable Court, SUO MOTO action on forthcoming Financial NRO in form of tax amnesty scheme, voluntarily tax registration and voluntary declaration of assets, in the HRC No 38448-S/2013. Annex-E.
15. In October 2016 the similar Amnesty granted to Corruption Accused (including Tax Defaulters) under NAO 1999, Section 25, Voluntary Return, has been stopped by the Honorable Court, in the Suo Mota Case 17 of 2016, (Action taken by this court to examine the vires of Section 25 (a) of NAB Ordinance 1999).
Following remarks of the honorable court in its Order dated 24.10.2016. speaks itself on such Amnesties.
• The Supreme Court on Monday restrained the National Accountability Bureau (NAB) chairperson from exercising the provision ofvoluntary returns (plea bargain) under Section 25 (a) ofNAO, 1999.
3 TRANSPARENCY Continuation Sheet No ...... INTERNATIONAL-PAKISTAN • The court sought list ofthe people entering into voluntary returns and said those who have availed it should be proceeded against so that they could not hold public office. • A three-judge bench, headed by ChiefJustice Anwar Zaheer Jamali, heard suo motu case on the plea bargain and voluntary returns. • The court ordered the NAB prosecutor general to provide detail ofthe amount received in plea bargain which the NAB deposited in the national kitty. • Justice Ameer Hani Muslim said the provision ofvoluntary returns extended to the NAB to eradicate corruption from the society had rather encouraged the corruption. • He said through Section 25 (a) the NAB had multiplied corruption, adding in the first instance they would stop the chairman from exercising this power.
16. Transparency International Pakistan request the Honorable Chief Justice ofPakistan to consider the new Income Tax (Amendment) Act, 2016, and orders appropriate actions so that this and all such Tax Amnesty Schemes are banned future in Pakistan, as this scheme in incentive to do corruption and then legalizes the ill gotten money.
Transparency International Pakistan is striving for across the board application of Rule of Law, which is the only way to stop corruption.
An indulgence ofthe Honorable Court in the matter is prayed for.
Yours Obediently,
Enclosed Annex-A, B ,C, 0 & E
Copies forwarded for the information of;
l. Chairman NAB, Islamabad.
4 [AS PASSED BY THE NATIONAL ASSEMBLY]
A Bill further to amend lhc Income Tax Ordinance, 2001
WHEREAS it is exp
(2) It shall come into force at once.
2. Amendment of Ordinance XLIX of 2001. - In the Income Tax Ordinance, 200 1 (XLIX of2001),-
(I) in section 68, (a) in sub-section ( 4), for the expression "the fair market value of immovable propt:rty shall be dl!termined on the basis of valuation made by a panel of approvc:d valuers of thl! State Bank of P:tkistan", the expression "the I3oard may, from time to time, by notification in the official Gazene, determine the fair market value of immovable property of the area or areas as my be :;peci fied in th<.: notification", shall be substituted; (b) after sub-section ( 4 ), amended as afores::tid, the following new sub-sections shall be added, namdy: - "(5) Where the fair market value of any immovabk property of an area or ureus has not been determined by the Board in the notification refcrn:d to in sub-section (4), the fair market value of such immovable property shall be d~emed to be the value fixed by the Distri~t Ofiicer (Revenue) or provincial or any other authority JUthorized in this hehalf for the purposes of stamp duty. (6) In respect of immovable pr~p:rty- (i) component A of the,iormula in sub-section (2) of section 37; "consideration received" as mentioned in Divison X of Part (ii) IV of First Schedule; .. lu. of itnmovable property" as mentioned in Divisons (iii) w ~ . XVIII of Part IV of the First Schedule; and ..
. . . :.~ ~ c_arrj'Scanner. $c .anne~ . ~y · . . . :;h:1ll not be less than th ~ . (iv J valuation for the purpo!>cs of s~ction 111, J<\11 t . ~.~e mark t! \a 1ue as detcrmtnl.!d· tmder sub-scctwn· (~)-. or ("):> . 'fi tl th · '"· · mark . cxplanatio, n. - (1) for the removal of doubt, 1t· 1s· can1 1e d 1at t: 1a1r ct \ ::tlue us d . . . the ~ : eterm1ned undt'r sub-section (4) or (5) shall be tor carrymg out purposes ,)f this C) d' . (, , . r m (2) in sccti~n II J. in sub-s~:c.tion (4) after cl::~us~ (a). the following new clause (c). shall be msc.:rtcd, namely:- ' "(c) to an amount investt.:d in at:quiring immovable property and c.:omputl.!d according to the following formula, namely: - t\- B Where.- A is thl.! value of immovable property determined under s~:ction 68; 13 is the value recorded by the authority registering or attesting the transfer; Provided that this clau!>e shall only apply if the value as computt!d under section 68 is greater than the value recorded by the authority registering or attesting the transfer; E:rplanation: For the removal of doubt, it is clarified that: (I) Sub section (I) shall continue to npply to the amount representing value recorded hy the authority rt:gistering or attesting the transfer. (2) Where a person has paid tax under sl!ction 236\V, the person shall be entitled to incorporate in the books of accounts the amount computed under this clause in tangible form ." (3) in section 236C,- . (a) in sub-:;ection (3), for the ~vords "five years'' the words"three years'' shall be substituted; (b) nfter sub-section (3), amended 35 aforesaid, the following new sub~scctibn shall be added, namely: - "(4) Sub-section (I) shall not apply to:- . (~) - a seller, if the seller is :.d~pendent of: , . . . . .' ~ .. ' \ ~ 2 scanned by ·CamS.caiiner- ·.- .... (i) <1 ~elle · to Pak~: tf the seller is dependent of: .a Shaheed belonging (ii) u •stan Armed h)rct:s' or f\ Person Who dies while in the service of the Pakisttm · rtned Porces or the Federal and Provincial Governments· (b) a~ ' to lh~ 11rst I . or allot SJ c of Jtnmovable property which has been acquired ted as . . allotl1le a.n anginal allotlee. duly certified by the official nt authority."; Alter S('Clion 236V tl , ., . , 1c 101 Jow , 111 g new section shall b..: inserted, namely:- "236\\'. Tnx <'n JHtr·dl'lSc o t . . • r t'~lnsf('r of . - . fL)f rt!);IStenng or attesting tr·t r trntnovahle propl·rty.-( I) I.: very person responsible:! . ' llSH:r of am· ...... at!t'SllllQ the transfer shall coli. • • unmovable property shall at the tame of reg.tstcnng or .. . cct 1roan the . I per Ct'lll of the amount co d PliiC laser or transferee mlvance tax at the rate of three mpute under ci ( ) . . nusc: c of sub-section ( 4) ot section 111 . (2) Tax collected under sub·scction (S) . , , s1 1a 11 not be adJustable. ; (5) in the First Schedule - ' (a) in Part 1, 1n Division Ylli, for the Tnble, the following shall be substituted, namely: _ "S.No., Period Rate of tax j _( 1) (2) (3) For immovable property allotted to persons mentioned in sub-section (4) of section 236C. l. j lmmo\'ahle property is held irrespective of the 0% r. holding p_cr iod. I 1 For immovable prop erty acquired on or after July I, 2016, other than those I mentioned against S .No.1 I 2. / \Vh~re hold ing period of immovable property is up 10% to one 1 y_:_ar. J. \Hwre hold ing period (>f immovable property lS 7.5% I I morL' than or equal to one )'l.!nr but less than two I Iyears. . Where hold ing period o~ . immovable property is 5% more than o r equal to tY.;O years but less than three years. ' L1~ 5. Where hold ing period · of immovable .property lS 0'~ I ' mon: than th rc:e years. I ~- - - erty acquired b:eforc July I, 20 16 other than those ! For immo\·nbl~ prop 1 ' mentioned ~gmnst S :~ o.l ' --·- ' 6, l\Vh.;;:ei,olding penod of '":"'ovable property 15 ;;pf 5% , ro three years. . ______j_ J ··-·-·-·---1 ·- . : ~ ,• . .~ S~~~nned by CamSca· nh.ef,: · :~ · .··...... '• • . . • . ·"~. :\~): ?- : ;~, ""-:.... \. ,~-- ... • Annex-B INTERNATIONAL THENfWS Traders ' tax amnesty: Facts and future challenges By Umar Cheema January 05, 2016 Ayub Khan's amnesty scheme succeeded as 7pc revenue contributed to GDP and 71,289 persons brought into tax net; out of 3.5m traders, only 135,000 in tax net; tax on banking transactions likely to increase up to one percent after grace period ISLAMABAD: A budding entrepreneur of a leading business family in Pakistan popped up on the radar of American tax authorities in 2008 to invest 23 million dollars in the real estate of New York. Upon questioning about his funding source, he said the money was brought from Pakistan. The investigators subsequently wrote to Federal Board of Revenue inquiring whether the transferred funds were taxed in Pakistan or not. An amnesty scheme of the PPP government was in the offing by the time allowing rich Pakistanis to whiten black money by paying only two percent taxes. It could generate only Rs2.8 billion; of this amount, Rs40 million was contributed by the scion of the rich family facing the inquiry in America. The FBR, instead of using this opportunity to recover the due amount of tax, wrote to its counterpart in the US that the money was taxed in Pakistan without mentioning that the person under question was the beneficiary of an amnesty scheme and had not paid a penny before, revealed an official privy to details. Here questions arise about the efficacy of amnesty schemes and whether the latest move by the PML-N government for luring traders into the tax net through yet another amnesty will be beneficial in the absence of FBR reforms. To answer these questions, a brief review of the past schemes will be instructive. lfthe history of tax amnesty schemes in Pakistan is any guide, only the one offered in 1958 had turned out to be productive. Being a maiden initiative and announced by the first-ever military ruler Ayub Khan, it succeeded in inspiring fear among the public contributing seven percent revenue to the GDP, the doctoral research of Shoaib Suddle, former Federal Tax Ombudsman, had found. (As many as 71 ,289 individuals were then enrolled in the tax net, according to FBR data.) The second amnesty granted by Gen Yahya Khan in 1969's revenue contribution to the GDP was only 1.52 percent and 19,600 persons were brought into the tax net. The third was offered by Zulfikar Ali Bhutto that collected revenue of 2.2 percent of GDP. The fourth scheme was during 1 Gen Zia's regime in 1986 that contributed not more than of the 1976 amnesty, Dr Suddle's research completed in 1986 indicates. That followed an amnesty by the PML-N government in 1997. Although no analysis in terms of the revenue contribution to the GDP is available, yet this money-whitening package generated a meagre sum of Rs 141 million tax revenue. Genindividuals into the net and revenue around Rsl 03 billion. A collection of Rs2.8 billion through amnesty scheme of 2008 by PPP government has also been mentioned.As far as the recently announced amnesty is concerned, it is not general in nature but only traders' specific. A lot has been written in the newspapers and debated in talk shows about it. That it will disillusion the honest taxpayers is a predominant argument being advanced. There is no second opinion about this contention but whether we have an honest taxpayer or not should be the foremost question. Other than salaried class that can't avoid paying tax and the compulsory indirect tax, there is hardly any Pakistani claiming to be honest taxpayer. This correspondent has asked the same question over a time to serving and retired FBR officials in search of an honest taxpayer but failed to find any. Also the fact remains that the rich are granted amnesty in different forms and one of such was announced during budget of 2015-16 declaring tax exemptions to industry in Khyber Pakhtunkhwa for five years. The amnesty for traders can't be better described than a carrot and stick policy. The government first imposed withholding tax of 0.6 percent tax on the banking transactions of non-filers and then reduced it to 0.3 percent by bringing traders to the negotiation table. Official figures have found 3.5 million traders throughout Pakistan and only 135,000 are in the tax net. Trading sector constitutes around 19 percent of the GDP but traders' tax contribution is only 0.05 percent meaning thereby they are virtually out of tax net. Same goes with agriculture sector that forms 21 percent of the GOP but zero tax contribution. Bringing traders to tax net will be a major achievement of the PML-N government as they are the ruling party's constituency and deadlock is not affordable politically and financially. The scheme has been announced with a modest expectation of enrolling one million traders. The optimism is not out-rightly misplaced. A refusal to enrolment under this amnesty means an escalating business cost in form of withholding tax of 0.6 percent at each transaction of Rs50,000. That will follow notices from the FBR on the basis of banking data and any protest by non-availing traders attracting no attention. This tax on banking transaction is likely to increase further up to one percent after the grace period of benefiting from amnesty is over. While opposition parties are dismissive of this policy, including PTI leader Imran Khan, Asad Umar is supportive of it and firmly believes that the energy should be directed towards its improvement instead of politicising it. However, his major objection during conversation with 'The News' was on levying mere one percent tax for whitening the business capital by traders. The missing point in his argument is 2 that the tax rate of one percent has been fixed keeping in view all-weather amnesty granted through section 111 (4) of Income Tax Ordinance that bars the FBR from questioning foreign remittances. Majority of the businessmen in Pakistan have been routinely sending money through different channels abroad and bringing it back in shape of foreign remittances with only two percent tax on banking transaction. 'The News' have already highlighted it in a story entitle 'Money laundering flourishes under the garb of remittances' basing report on some case studies where billions have been recycled through this channel. Thus enhancing tax rate for traders under this scheme means defeating the purpose of amnesty as they are likely to whiten money through other channels and remain undocumented. Instead of questioning one percent tax rate, amendment in tax law should be demanded for empowering tax officials to question the source of remittance. Presently, a political appointee in the FBR is under NAB inquiry for receiving Rs700 million through remittances but is reluctant to disclose who sent the remittances.Another point in the scheme worth highlighting is the clause relating wealth statement. Under the present scheme, any trader declaring income less than one million rupees don't have to declare assets that will likely to encourage mis-declaration by traders. This preferential treatment to the traders unlike other taxpayers who have to declare assets no matter the declared income is less than one million, should be abolished. Other issues meriting consideration are the reforms of tax administration. What if traders are brought into the tax net but the FBR is not capacitated enough to ensure due recovery from them. While the government is bent on bringing them into the net, a matching number of rich individuals discovered by Nadra have gone unaccounted by the FBR since there are many influential figures enlisted. A study by Nadra in 2012 found 3.5 million rich Pakistanis who frequently travel abroad, live in posh areas, operate multiple banks accounts with more than one vehicles registered in their names but are out of tax net. Instead of training guns at the government for this scheme, the media, civil society and parliamentary opposition should focus on making this a successful attempt through demanding reforms in tax administration that include its autonomy having tenure-protected chairman who could perform duty diligently and independently in absence of any political pressure. Less than that, business will remain as usual. No amount of reform commissions will help without implementation of recommendations. Like amnesty scheme, many commissions have been set up before. The commission formed by the PML-N government is not the first one. 3 -· ·---=--. . - ; 7. ·rw:-h- I ! \\' ll(!r\,! }1 -:--1, ·------.-----·--·· , ' 0''~0 !__ 1 "" .0 dm. g pt>Yiod of immovable prop~rt) IS --...... ore thun . L - ·- --- _ three vears: - Provide<..! ~ ---=--- -- · r~duc~d b\ filh t lut I ate of t:Jx to be 'd d b t'ot1 (\A) of section 37 shall be . · • Per c.•tu pm un er su -~~c 1 · ex-scr\'tC~nlcn - . . on the first " I' (' . " bl ·· propcrtv ncquir~d or (\llottcd to ttnu sc r\'· .,a l: o 1tnmo .a t.: • • personnel of Fed.··] lng per~onnel of ·\rmed Forces or ex-employees or scrvmg · ~~ n 'Ln I p · f h umno\'able propen , .l , <. rovincial Go,·t:rnmcnts, being original al\ottecs o l e ) ' uuly cenif . ,, led by the allotment authonty. ; (b) in Pnrt IV · . . , and 2 . , In Dlvtson XVIII, in th:: Table, in column ( 1), against both S.N. l . ·• 111 C0lumn (T f , 'll' "t\ foure and word ''4 ·11' .. -) orthefigun;:-~ndword'3ml 10n 1e lc I 1ll lOll shall b . . c substituted·, STATEMENl' 0 ~-- F OB.JF.CTS AND HEASONS In order to bring u d . · ~ · 1 t:c I • . . n OCUillented part of transactions of immovable property mto ~rma o 10ni~ _and to ~locumt!nt transactions at fair market value, amcndmt!nts were introduced m the l nc11mc . I ax Ord mancc · '00- 1 ·1~ uough I·mance.. Act ?() J6 whereby the powers o r c· omnussroner· · '~:t:~~ ~vllhd,~a,~·n and valuation was to be made by ,a-pan~l of approved valuers of s:ate Bunk of I aktst.tn. Sunrlarly, the b '!ding nature of the valu~.: determined by the Provincwl Revenue authorities for the purpose of collecting stamp duty has also b(!en withdrawn. ~ - To resolve the conce1 ns of business community in gent!ral and realtors, real estate developers and properLy dealers associations in particular, regarding valuations to be made by the valuers of the St:He Bani\ of Pakist:!n, Federal Government illtl!nds to notify fair market valuation t.ihks through Federal Board nf Revenue in order to remove ambiguity and to bring transparl!ncy with rl.!gard to the fair values <•f the propt!rties. The objective is being pursued in such a way so ns to rromok documentation nnd to !-!,eneratt: fair and du~: revenues for the state. - . . .. ,.. .. \ ... . This seeks to amend Income Tax Ordinance, ~00 l. Senator Mohamm:ul Ishaq Dar Minister for Finance, Revenue, Economic Affairs, . Statistics and Privatization ·Sca·nned by CamScanher 5-C, 2nd Floor, Khayaban-e-lttehad, Phase VII , Defence Housing Authority, Karachi. TRANSPARENCY Tel· (92-21)-35390408. 35390409, Fax: 35390410 INTERNATIONAL-PAKISTAN E-matl: [email protected] Webstte· www transparency.org.pk 2nd January 2016 Honorable Justice Anwar Zaheer Jamali, Chief Justice of Pakistan, Supreme Court of Pakistan, Constitutional A venue, islamabad. Attn: Human Rights Celi-HRC No 38448-S/2013 Sub: Prayer for taking SUO MOTO action on forthcoming Financial NRO in form of tax amnesty scheme, voluntarily tax registration and voluntarv declaration of assets Respectfully Sheweth, , My Lord, the Transparency International Pakistan on 14th November,2012 prayed for taking SUO MOTO action on forthcoming Financial NRO in form of two blanket tax amnesty schemes, voluntarily tax registration and voluntary declaration of assets. Annex-A HRC No 38448-S/20 13 was registered by the Supreme Court. On FBR's reply to Supreme Court dated 151 January 2013 in the HRC No 38448-S/20 13, Tl Pakistan submitted its comments on 26th February 2013. Annex-B. 1 On 5 h January 2013, TI Pakistan while requesting the honorable court again to take up its request, also submitted Senator Ishaq Dar's statement on the Tax Amnesty Bill. Annex-C .. Taking the floor, leader of opposition Muhammad /shaq Dar charged that the bill would promote tax evasion and this would further hit the already dwindling tax-to-GDP ratio. He said the FBR had indicated to Lake aclion after identifying 2. 9 million rich people. He claimed through adopting a normal procedure of bringing these people into tax net, FBR could collect at least Rs. 1500 billion instead ofmere Rs. 108 billion by charging just Rs. -10,000 from 0. 2 million persons. ". However, Senator I shag Dar has against his own statement as Leader of the Opposition in Senate in 2013,, on 18th December 2015 Tax has announced following Amnesty Scheme for tax evaders. "Unregistered traders are to be offered an official tax amnesty if they declare their assets, business leaders said Friday. Under the scheme, full tax liability on up to Rs50 million earnings will be waived in 1 A NON-PARTISAN, NON-PROFIT COALITION AGAINST CORRUPTION Donattons exempted from tax U/S 2 (36) (c) of I. Tax Ord1nance 2001 ~TRANSPARENCY ~ INTERNATIONAL-PAKISTAN Continuation Sheet No ...... favour of a one per cent payment. They will also be exempted from auditing their businesses for three years. Transparency International Pakistan sent a Jetter to the Prime Mister of Pakistan on 26 111 December, 2015, with following objections on the Tax Amnesty Scheme. Annex-O: Earlier in the year 2012, such effort was also made by previous government preferring short-cuts to extend a major relief to the elite ahead of the General Elections; the PPP led coalition Government introduced a controversial Tax Amnesty Bill in the National Assembly to whiten black money and assets at home and abroad within three months against a nominal one-time charge. But the Tax Amnesry Scheme was not approved by the Parliament when it was strongly opposed by Civil Society and specially by TIP and the matter ofthe Tax Amnesty Scheme was taken up with the ChiefJustice Supreme Court of Pakistan Another very crucial aspects of proposed amnesty scheme is that the author/creator of the scheme is treating the other organs of the state like NAB, FIA, Anti Corruption, Money laundering (Stare Bank of Pakistan) as impotent like the functionaries of FBR and the most important and vigilant organs of the state have been turned toothless rigers under the garb ofproposed amnesty scheme Transparency International Pakistan strongly requests the Han 'ble Prime Minster of Pakistan not to process this proposed Tax Amnesty Scheme which will amount to Financial N. R. 0 with Ta.'< Evaders and big tax dodgers. At the same time it will also discourage the honest, loyal and fully compliant taxpayer citizen of this poor nation. Similarly National Exchequer shall also suffer huge loss in tax collection when untaxed money upto Rs.50 Million is offered to be cleared by paying pennies i.e., 1% while as per law said untaxed, ill-gotten money may be taxed at 35% with IOO% penalty. Unfortunately, no action was taken on Tl Pakistan's objections, and on 1.1.2016 the Ministry of Fiance has introduced a Tax Amnesty Bill, as published in newspapers. Annex-D. This Tax Anmesty Scheme with nan1e of Tax Incentive Package of the government is unconstitutional under the Article 2-A, the Objectives Resolution, which guarantees the principle of equality, as stated " wherein the principles ofdemocracy, freedom, equality, tolerance and social justice as enunciated by Islam shall be fully observed. ". How can the government penalize the honest tax payers? The Tax Amnesty Scheme announced in 2008 was also misused, and Federal Tax Ombudsman had also warned FBR vide letter dated 20 March 2010 to ensure proper monitoring of tax payers who filed declaration, and also monitor for mandatory 3 years tax filing requirement, failing which anmesty claimed is to be rejected . It is reported that FBR did not identify a single case of violation out of more than 10,000 claimants. Sincerity of FBR is doubtful. 2 ~TRANSPARENCY ~ INTERNATIONAL-PAKISTAN Continuutioll Sheet No ...... Transparency International Pakistan request the Honorable Chief Justice of Pakistan , 1. To take a consider the new Tax Amnesty Scheme Bill2016 in HRC No 38448-S/20 13 and orders appropriate actions so that such Tax Amnesty Scheme are banned ..for future also. 2. Or the honest tax payers who have paid income tax on taxable income of up to 50 million in last four years shall be refunded all the tax paid, , while retaining 1% on the taxable amount of less than Rs 50 million. Transparency International Pakistan is striving for across the board application of Rule of Law, which is the only way to stop corruption. An indulgence of the Honorable Court in the matter is prayed for. Yorrr c~:ntly, syen~ani, Ad vi;, Enclosed Annex-A, B, C and D Copies forwarded for the information of; I. Secretary to Prime Minister, Islamabad. 2. Mr. lshaq Dar, Minisre ofFinanace, Islamabd 3. Chairman, Prime Minister's Inspection Commission, Islamabad. 4. Chairman, FBR, Islamabd 3 l - ANNEX-A 5-C, 2nd AOOf", Khayaban-e-lttehad, Pn.ase VII, TRANSPARENCY Oerence Housing Authority, Karachi. Tel: (92-21}-3539040e. 35390409, Fax: 35390410 INTERNATIONAL-PAKISTAN E-maU: [email protected] Wabslle: www.transparency.org.pk 1 14 h November 2012 Honorable Justice Iftikhar Muhammad Chaudhry, Chief Justice of Pakistan, Supreme Court of Pakistan, 'Constitutional Avenue, Islamabad. Attn: Human Rights Cell ub: Prayer for taking SUO MOTO action on forthcoming Financial NRO in form of two blanket tax amnesty schemes. voluntarily tax registration and voluntary declaration of assets Respectfully Sheweth, , My Lord, the Transparency International Pakistan prays that the Honorable Chief Justice of Pakistan to take a consider a Suo Moto Case on FBR proposal of two blanket tax amnesty schemes, voluntarily rax registration and voluntary declaration of assets, to raise a few extra billions, irrespective of its adverse implications, and at the cost of honest tax payers. FBR claims to collect Rs 150 billion through this amnesty is false and a total lie, as it will require Rs 7,500 billion illegal money declaration, whereas in 2008 only Rs 1.54 billion were collected by FBR on Rs 77 billion illegal money declared under that amnesty scheme. TI1e news clippings, containing serious objections of this move of the Ministry of Finance ts enclosed ( Annex-A). This move of the government is also unconstitutional under the Article 2-A, the Objectives Resolution, which guarantees the principle of equality, as stated " wherein the principles of democracy, freedom, equality, tolerance and social justice as enunciated by Islam shall be fully observed.". How can the government penalize the honest rax payers? Following are the serious objections raised by various quarters, which need to be looked into seriously; Business Recorder 19 September 2010 I. A study conducted by the Federal Board of Revenue (FBR) on black economy has shown that frequent amnesty schemes, including "Tax Investment Scheme", have protected the tax evaders, increasing the size of Pakistan"s informal economy manifold. A research, conducted by FBR Directorate ofTraining and Research, headed by Abdul Wadood Khan, on "Black Economy" is an eye opener for the government to tackle the informal economy through a national documentation strategy. The most disturbing aspect of Pakistan"s tax system is weak enforcement. Whereas FBR"s perspective is that fault lies with tax legislation, it is a proven fact that the promulgated laws are not enforced effectively and whenever any shortcoming is pointed out, FBR stalwarts blame tax legislation. A NON-PARTISAN, NON-PROFIT COAUnON AGAINST CORRUPTION Donations exempted from tax U/S 2 (36) (c) of l. Tax Ordinance 2001 ~TRANSPARENCY Couti11ua1ion Sheet Nu ...... ~ INTERNATIONAL-PAKISTAN TIP Letter to tbe Prime Minister of Pakistan 3 October 2012 (Annex-B) 2. Tl-Pakistan would refer to the news reports about the proposed Tax Amnesty Scheme which allows the tax evaders to whiten their money after declaration of their wealth at 01% rate only. 3. Pakistan cannot afford any tax amnesty scheme which deprives all those law abiding citizens who are paying the taxes regularly in accordance with the law. This Tax Amnesty Scheme will result in continuing the corruption and tax evasion by the businessmen who have in 2008 declared billions of rupees in such schemes at 2% rates only. 4. TI-Pakistan also forwards the objections raised on the Tax Amnesty Scheme by various forums including IMF, daily ·•oawn" and daily "Jang". 5. lt has also been reported to TI-P that there are businessmen who have availed the 2008 Tax Amnesty Scheme, and who are today doing thriving business, taking billions of rupees' loans from the banks, avoiding FBR duties and taxes and also getting their loans written off as non-performing loans under political pressure. 6. This is also to inform the Prime Minister that on 27m August 2012, Tl-Pakistan proposed to the Chainnan FBR to devise a mechanism to collect 19.5% GST I Excise Duty and l 0% With-holding Tax on prepaid cards for cellular phone companies, internet service providers and WLL phone services, prior to their sale in market, which would result in additional FBR Revenue of over Rs. 250 billion, presently evaded by all the companies. Dally D.awn 1 October 2012 7. "One needs to remind the government of its solemn promise to the Parliament in 2008 that after 'Tax Investment Scheme 2008' it would not introduce any more amnesty schemes -though it offered thereafter the same to stock exchange investors in April 2012 and all kinds of concessions to tax evaders in the months of May and June 20 l 2 to achieve the budget target of Rs 1952 billion, but missed it by over Rs70 billion. 8. Dr lkramul Haq told Dawn that there was no practice in the world to give blanket exemptions to tax dodgers. He recalled that recently the US not only recovered due taxes from its citizens who kept their money in the Swiss bank but also collected 50 per cent penalty. 9. The proposed schemes would also exempt tax dodgers from investigation by the National Accountability Bureau and the Federal Investigation Agency about the source oftheir incomes. I 0. Such schemes provide exemption from investigating the source of money earned from varied sources including from smuggling, terrorism, kidnapping for ransom, narcotics trade, extortions etc., says Dr lkramul Haq, a tax consultant. I I. Voluntary declaration of assets: Under this scheme, tax evader will be allowed to pay one per cent tax of the value of assets both non-transferable {plots, houses, plazas, bungalows, factories, industrial machinery, industrial investment, flats) and transferable assets (cash in banks, any other deposits, jewellery, shares etc) until October 31. 12. In similar cases, this one-time facility can be availed with a payment of 1.2.5 per cent on declaration of concealed assets from November I to 30 and 1.5 per cent on assets declared between December l to 31. This scheme apply on both domestic and foreign assets value, and will expire by January l, 2013. 13. Lnterestingly, the declarers would themselves evaluate their assets and the tax authorities would not be able to challenge that value either now nor in future under the proposed guaranteed legal cover 2 ~TRANSPARENCY Cominuation Shl!el \ (! ...... ~ INTERNATIONAL-PAKISTAN Busi.ness Recorder 9 Oct 2012: 14. There are three elements of the amnesty scheme periodically launched in this country with an inordinate focus on generating resources on a one-time basis that necessitate a revisit. First, an amnesty is a fmancial National Reconciliation Ordinance (NRO) that cannot and must not be repeated after every few years as the government's budget deficit becomes unsustainable ~ it must be a one-time deal. Instead, the focus of the FBR must be on plugging the sources of black money generation and the major source remains the incomplete sales tax chain in the country. 15. Secondly, and equally pert.inently, amnesty schemes have the potential of being taken advantage of. In the past amnesty schemes were used to declare future black money earnings by showing cash in hand and prize bonds which are bearer instruments. J6. In this context an amnesty scheme sends an unsavory message to honest taxpayers namely that they are fools and should follow the example of those operating in the parallel illegal economy as an amnesty scheme, based on numerous such schemes in the past, is just round the comer. Daily Times 2 January 2009 17. Black money worth Rs 77 billion was turned into white by 10,828 people under the Tax Amnesty Scheme introduced by the Federal Board of Revenue (FBR) (in Six Months), a private TV channel reported on Thursday. A citizen from Karachi legalised the highest amount of illegal assets, the channel reported. An FBR spokesman said Rs 1.542 billion were deposited in the national exchequer under the scheme. The Trust in Tax Evasion 2 Nov ,2009 18. "The Scheme of "Investment Tax- 2008" is a voluntary scheme through which government has reposed trust in the taxpayers and an opportunity has been provided to legitimise the unexplained and undisclosed assets at a nominal rate of two per cent of the fair market value ofthe assets as declared." However, the trust reposed is not in 19. taxpayers but in the tax evaders. The fair market value shall be declared as on June 30, 2008. 20. Once it is declared and brought on balance-sheet, the taxpayer can also claim depreciation with effect from July 0 I, 2008 as per Sec 23 of the ordinance. Suppose there are two private limited companies. One is honest taxpayer who has paid tax over the last five years and the other a tax evader now lured by investment tax scheme to declare his undisclosed assets. Suppose that each company has income ofRsiOO in each ofthese following years. The tax liability in each of these cases will be as under: Tax Year Taxable income* Rate of tax Tax paid Honest Tax evader company taxpayer opting Investment company tax scheme Rs. % Rs. Rs. 2003 100 43 43 0 2004 100 41 41 0 3 ~TRANSPARENCY Coutinuutio11 Sheet S o...... '(1::/tNTERNATIONAL-PAKISTAN 2005 100 39 39 0 2006 100 37 37 0 2007 100 35 35 0 500 195 0 Tax paid under 0 10 investment tax on income scheme Total tax paid 195** 10 Percentage tax 39% 2% • Effect of re-investment of income has not been taken which otherwise would have increased tax liability of the honest taxpayer. • Tax compliance cost, opportunity cost, additional taxes on late pa The 2008 Tax Amnesty Scheme was misused, and Federal Tax Ombudsman had also warned FBR vide letter dated 20 March 20 I 0 to ensure proper monitoring of tax payers who filed declaration, and also monitor for mandatory 3 years tax filing requirement, failing which amnesty claimed is to be rejected . ( Annex-C) . lt is reported that FBR did not identifY a single case of violation out of more than I 0,000 claimants. Sincerity of FBR is doubtful. Transparency International Pakistan request the Honorable Chief Justice of Pakistan to take a consider a Suo Moto Case and stop the ministry of finance to announce this alleged illegal scheme. Transparency International Pakistan is striving for across the board application of Rule of Law, which is the only way to stop corruption. An indulgence of the Honorable Court in the matter is prayed for. Yours Syed A ilani, Adviser Encl: Annex A, Annex B. Annex-C 4 ~ ANNEXX-B 5-C, 2od Floor, Khayaban-e-lttehad, Phase VII, TRANSPARENCY Defence Housing Aulh~. Karachi. Tel: (92·21 )·35390408, 35390409, Fax: 35390410 INTERNATIONAL-PAKISTAN E-mall: [email protected] Website: www.transparency.org.pl< ~ 03rd October 2012 Mr. Ayub Qazi, Principal Secretary to the Prime Minister, Prime Minister House, Islamabad. SubJect: Forthco!lling Tax Amnesty Scheme an<;! TJ-Pnl A NON-PARTISAN, NON-PROFIT COAUTION AGAINST CORRUPTION Donations exempted from tax UIS 2 (38) (c) oil. Tax Ordinance 2001 ANNEX-C t'~~ ~··~~,.~;.(. l - ~·~""!..'.di Qb~!!) ·~ FEDERAL TAX OMBUDSMAN SECRETARIAT No.1/730/09-lmpl. Dated: 20-03-2010 Complaint No. 188/lsd/IT(129)730/2009 To, The Secretary, Revenue Division, Islamabad. Subject: IMPLEMENTATION OF FINDINGS -- DECISION OF THE HON'BLE FEDERAL TAX OMBUDSMAN. A copy of the Findings/Recommendations/Order of the Hon'ble Federal Tax Ombudsman dated 13-03-2010 in the complaint cited above is sent herewith for compliance. 2. Compliance report be submitted withiCl prescribed time mentioned in the Findings/Recommendations. . ~ e:;d (Mirza Rafi-uz-Zaman) Advisor (I&M) Federal Tax Ombudsman Secretariat Islamabad A copy of the Findings/Decision/Order is forwarded for information to : 1 ~ Mr. Moin Aziz Mirza Pi , Suite No. 2-A & B, Plot No. C-10, 10 h Zamzama Commercial Lane, Phase-V, DHA, Karach i. (ii) Sardar lrshad Shaheen, Advisor, Federal Tax Ombudsman Secretariat, Islamabad. ,.;-v- ) (Mirza Rafi-uz-Zaman) Advisor (I&M) Federal Tax Ombudsman Secretariat Islamabad JSLAMA6AD:- LAHORE : KARACHJ:- Siole En t orprl~es Complex. 5-A. Con1tolvt•on Avenue. Bungorow No IB6-A. NIC lll.'oldlng I~"' Floc<. f·.S/1. lllomobod ~co lc h CCfner. Abboloi Shoheod Rood. Ph 9212316,9212318,9212321 9212328 Upper Molt, LOI'IOIO Oft Shohloh-e-Foisol. Fox 9205553 Tel: ?201894·95 Korodw f-moo: [email protected] Fox: 9201893 Tel: 9206780.84 I>..A"r'VVt.l llnlhrGmoll c.om Fox· 92067B5 FEDERAL TAX OMBUDSMAN ISLAMABAD . Complaint No.l88/Isd/IT{l29)/730/2009 (Dated 19-11-2009) Mr. Moin Aziz Mirza PI, Karachi Complainant Versus Secretary, Revenue Division, Islamabad Respondent Dealing Officer: Sardar Ir... had Shaheen, Advisor Authorized Representative: Complainant in person Departmental Representative: Dr. Tariq Maqsood, Additional Commiss~oner, RTO Karacj1 ' FINDINGS/RECOMMENDATIONS The Complainant has alleged maladministration by the FBR on account of introducing Tax Amnesty Scherrte/ Investment Tax Scheme in 2008, and for not utilizing information provided by the Complainant as Informer. According to the Complainant, he lodged the complaint in public interest since massive misuse of Investment Tax Scheme .was resulting in evasion of tax running into billions of rupees. He claimed that there were 6214 cases of tax evasion pending with the Department and the appellate authorities, involving an amount of Rs. 82784 million. He comends that instead of deciding these cases and recovering the evaded revenue, the FBR introduced Investment Tax Scheme, allowing declaration of moveable and immoveable assets by paying tax at a -==---____,===---:= ---=--::._._.__..;:==--~ .2 C J88/lsd/11'(!".l9!17:J0/09 petty rate of 2% only. thereby rewarding the big tax evaders in whitening their ill-gotten ~ealth at the cost of national exchequer. He emphasized that this action on the part of the P'BR was gross maladministration ufs 2(3) of the FTO Ordinance. 2. The Complainant further claimed that- (i) He wrote a letter to the Income Tax Depart~ent and Sales Tax Department on 16-l 0-2008 providing information in a case of misuse of Investment Tax Scheme. But the Income Tax Department did not respond to his offer which was an aspect of maladministration on the part of the Department. (ii) He provided information to the Internal Auditors of Sales Tax Department which resulted in detection of evasion of sales tax amounting to Rs. 4.1 million in the case of Pakistan 'Metal Industries. The Contravention Report prepared by Sales Tax Auditors also revealed that M/s Pakistan Metal Industries suppressed sales of Rs. 27 million and purchases of Rs. 32 million in the returns of income filed with the Income Tax Department fo~ tax years 2007 ·and 2008. (iii) Three Directors of the Company had declared cash of Rs. 20 million each under the Investment Tax Scheme in December 2008. This example clearly indicated the fact that Investment Tax Scheme could be misused by the taxpayers due to negligence of FBR. 3. .Rebutting the contention of the AR, the DR argued that: (i) The Complainant was not an aggrieved .person m terms of Section 9('1) of ITO Ordinance 2000, as the I .\ - =--======--- 3 C 188/lsd/ll1129!/730/09 Complainant's personal interest had not been affecLed . ' by any proceedings of the FBR or its subordinate offices. (ii) The complaint was also barred by time uf s 10(3} of the FTO Ordinance since .the Investment Tax Scheme was introduced in 2008 and complaint was filed on 19-11- 2009. (iii) [nvestment Tax Scheme 2008 was passed/approved by the National Assembly through Finance Act .2008 and so the Complainant had challenged the v.·isdom of the Legislature. (iv) The FBR used delegated powers to implement the J Scheme through Circular No. 3 of 2008 and fixed the rate of tax at 2%, which had neither been challenged in any court of law nor disputed at any other level. (v) The letter of the Complainant addressed to the Department was of general nature and had no specific/material substance or worth for consideration by the Department. (vi) The suppression of sales and expenses ~!aimed to have been discovered, as per Contravention Report based on the material provided by the Complainant in M/ s Pakistan Metal Industries1 was not factually correct. The Report prepared by Internal Auditors of the Department was not only u~umbered and unsignec;l (except the last page), but the figures mentioned in that Report regarding suppression of sales and purchases by M/ s Pakistan Metal Industries were incorrect. 4 C.l88/lsd/1If!291 1730/09 (vii) The Company filed return for the first time m tax year 2008 by declaring sales at Rs. 30 million and cost of goods/purchases Rs. 27 million. The Contravention Report was not authentic as . adjudication on this Report was still pending. M/s Pakistan Metal Industries was a Registered Firm which was converted into Company in September 2007, and its first income tax return was due for tax year 2008, and no proceedjngs were pending in the case, and therefore, Investment Tax: Scheme could not be misused by this Company. (viii) The Company did not declare any assets through Investment Tax Scheme, but cash declare~ by each of the three Directors of the Company was m their individual capacity being separate legal entity, which was permissible under the law. (ix) The return of the Company for t~ year 2008 was selected for audit by FBR through balloting, and its audit had been outsourced to M/s Yusuf Adil & Co, reputed Chartered Accountants, and the audit would not be conducted. by the Department. · (x) The information about any t~payer could not be disclosed to the Complainant by the Department u; s 216 of IT Ordinance 2001, and Disclosure or Access to Public Information Ordinance 2004 relates to the disclosure of expenditure only. The DR emphasized that the complaint had no legal or factual substance and there was no act of maladministration on the part of the FBR or lhe Income Tax: Department. He prayed that the complaint be filed. 5 · C !88/lsd/IT!!29l/730/09 4 . The Complainant did not agree to the contention of the DR that M Is Pakistan Metal Industries filed first return of income tax for tax year 2008. He claimed that the Company existed as a firm before tax year 2008, and he had offered to provide information before the issuance of Circular No. 07 of 2008 dated 19-07-2008, which did not provide protection under Investment Tax Scheme to the taxpayers in relation to issues already raised/detected and where proceedings were pending. He claimed that there were instances where Investment Tax Scheme was misused even by those taxpayers whose proceedings were pen'ding with the Department or the appellate authorities, and M/s Pakistan Metal Industries was one of those cases. 5. Both the parties have been heard and record perused. The DR's contention carries force that Investment Tax Scheme was introduced through Finance Act 2008, against which no objection., could be raised at the !?TO's forum. The FBR only implemented the Scheme through delegated powers as per provisions of law. The rate of tax at 2% flXed by the FBR is also contestable before appropriate judicial fora. The Complainant could not be termed as an aggrieved person for lodging complaint in the strict sense of the word. However, maladministration of a general nature could be · poin.ted out by any person if it casts aspersion on the conduct of F'BR or the institution subordinate to it. Findings: -· 6. The contention about misuse of Investment Tax Scheme by M/ s Metal Industries, as pointed out by the Complainant, does n - ~ . -,·· 6 ~sdll111:l9t l 730 / 0 9 vigilant in monitoring the Scheme ~ The FBR was duty bound to ensure that the Scheme was not misused. It appears to be a systemic issue which needed to be tackled appropriately considering the number of taxpayers (6214) whose cases were pending involving substantial revenue of over Rs. 82 billion. The Sales Tax Department responded to the Complainant's letter, but the Income Tax Department did not bother to reply; and such inaction and negligence is maladministration as defined uj s 2(3)( ii) of the FTO. Ordinance 2000. Recommendations: 7·. ln view of foregoing, it is recommended.that FBR to- (i) properly monitor cases ·of taxpayers who filed declarations under Investment Tax Scheme 2008; (ii) adopt fool-proof measures to forest~) the chances of misuse of Investment Tax Scheme; and (iii) take deterrent action in any case(s) of misuse of the ·Scheme. 8. Compliance be reported within 60 days. ------~ l 4 (Dr. Muhaiiim~Cf Shoaib Suddle) · Federal Tax Ombudsman Dated: f} ..-oJ» -2010 M.l. I. \; 'I ..-...... •• -t ~- Mirza Rafi-uz-Zaman· (R. Dlstnct & St~o~ion1 Judgt AdVIS04' (lmptemtfltatlon & Wonltori"111 Ftdnl Tu Ombudaman Secnuriat ltllfl1jb&d J GOVERNMENT OF PAKISTAN (REVENUE DIVISION) FEDERAL BOARD...... OF REVENUE C ..N0.1 (24 )Ex/2008 Islamabad, the 19lh July, 2008. CIRCULAR NO. 07 OF 2008 (INCOME TAX) SUBJECT: INVESTMENT TAX SCHEME. 2008- CLARIFICATION REGARDING. Through the Finance Act, 2008, Government has introduced Investment Tax Scheme 2008 with effect from July 1, 2008 under section 120A of the Income Tax Ordinance, 2001 for the payment of tax on unexplained income/assets @ 2% of Fair Market Value as on 30.06.2008. In this regard various queries/issues have been raised which have been considered by the Board and are clarified hereunder:- S.No. QVRIY RAISED CLARIFICATION I. Whether the scheme comes only for This scheme is applicable to every person the resident taxpayers or the non- whose income is chargeable to tax under the resident as well, and whether it Income Tax Ordinance, 2001. extends to FATA/Northern Areas/Azad Jammu and Kashmir also. This may kindly be clarified. 2. No formula is prescribed for No formula or basis ha.s been given for determination of fair market value of determination of the Fair Market Value in the various classes of assets scheme because Government of Pakistan has reposed full confidence in the tax payer in stating the value of the assets as on 30.06.2008 tn the declaration form. It is expected that the taxpayers would declare the fair market value of the assets as only nominal tax of 2% of the value has to be paid in lieu of a much higher tax and penalties payable on the value of assets/investments under the deeming provisions of the Income Tax law. 3. Scheme does not elaborate the types As mentioned in para 6 (ii) of the scheme, of deficiencies covered under the "deficiency'' refers to any mjstake in sub para (ii) of paragraph 6. It calculation of tax or filling in of columns of appears that under-declaration of fair the declaration form etc. The scheme does not market value also constitutes prescribe any method of valuation of Fair deficiency. Market Value as was available in the earlier amnesty schemes. Accordingly fair market value as declared by the taxpayer is liable to be accepted. 4. (i) Cut off date for conveying tbe (i) The declarant is required to meet the deficiency under para-6(ii) is deficiency within 10 days of the receipt of the not prescribed. intimation letter as mentioned at para 6(ii) of the scheme. (ii) Valuation date (30-06-2008) has (ii) It has been mentioned in para 2(b) and 7 been mentioned in the proforma of the main circular that valuation date would of declaration but the same bas be 30.06.2008. not been mentioned in the main circular. 5. Whether declaration can be filed (i) The scheme is applicable to all with regard to the issues pertaining undisclosed assets/income which to audit and already communicated somehow or the other could not be to the taxpayer or not? Moreover, disclosed and remained un-explained. the cases where concealment rssues pending m appeals or raised proceedings/NAB proceedings are /detected by the department would be pending are also not excluded. dealt with under normal law and not under specific provisions of the scheme. 2 (ii) Its scope is limited to the proceedings covered by the Income Tax Ordinance, 2001 only. The declaration made and tax paid under the scheme, therefore, shall not absolve the declarants from any action under the provisions of other applicable laws. 6. Whether any action can be taken if Under para 4 of the scheme, a new taxpayer is the declaration subsequently proves obliged to file retum of income for the tax wrong. Similarly, it is not clear year 2008 and succeeding three tax years. In about the fa te of declaration if the case the taxpayer fails to do so, then taxpayer fails to file returns of immunity under the scheme shall not be succeeding three years. available in his case. 7. The language of para 2, sub-para (b) The scheme primarily applies to income of the Circular, which defines represented by any undisclosed/unexplained unexplained income/assets proposes investment made or asset acquired in the past. that any person can also declare his Normal income relating to tax year 2008 uncaxed income for the tax year which is required to be included in the total 2008. income and chargeable to tax under the ordinance, is obviously not covered by the scheme. It will cover the period upto tax year 2007 where tax payer is prevented under the law to make good any under declaration or non-declaration of income/assets. All incomes and assets pertaining to tax year 2008 are to be declared in the rerurn of income/wealth statement for the tax year 2008 and tax paid on normal rates. 3 8. Whether income or assets covered The scheme covers all assets/investments under the repealed Income Tax pertaining upto the tax year 2007 and the Ordinance, 1979 are covered by the period falling within the ambit and scope of scheme? the repealed Income Tax Ordinance, 1979. 9. Investment Tax is payable @ 2% of Had the tax payer disclosed such income/asset the fair market value of the assets at in relevant·tax year in the past a much higher the time of declaration which seems tax rate/tax liability would have been attracted to be illogical. including invoking of the penal provisions of the Income Tax Ordinance. Since the scheme provides a fair opportUnity of making true declaration at a very nominal rate of 2% the fair market value, as declared by the tax payer, bas been made the basis of declaration. The taxpayer, obviously, knows the market value of his assets and is expected to declare it in all fairness. 10. The purpose of mentioning member It is to identify the person who will sign the of AOP/Principal Officer/Chief declaration on behalf of AOP or Company. Executive Officer of the Company at The portion not applicable may be struck off S.No. 5 of the declaration form is by the declarant. nor understandable. 11. For vehicles and other assets not The value of assets including a motor vehicle shown in column A, B and C part·l is to be declared on the basis of fair market of Annexure I the information value as on 30·06·2008, therefore, mentioning regarding the tax year in which these of the year of acquisition, is for reference assets were acquired is required purposes <:nly and will have no material only. Whereas for all other ki.nd of bearing on the declaration. Even otherwise assets the condition for the tax year complete particulars of the assets declared in which assets are acquired is not under the scheme should be provided as these required. This requires explanation. are subsequently entered in the books of the taxpayers. 4 12. What will be the criteria to The criteria for de.claration of these assets determine the fair market value m should be the accounting and legal practice case of the followings:- followed for valuation of such assets and any deviation therefrom could not be suggested in I. Shares of Private Limited the scheme. Companies. 2. Investment in Government Securities. DSC. Behbud certificates with maturity period of ten years. 3. Stock-in-Trade. (SARFRAZ AHMAD) SECRETARY (EXEMPTIONS) 5 - 5-C, 2nd Floor, Khayaban-e-lttehad, Phase VII , Defence Housing Aulh0i1ly, Karacha. TRANSPARENCY Tel : (92·21 }-35390408, 35390409, Fax: 35390410 INTERNATIONAL-PAKISTAN E-mail: [email protected] Webstte: www transpareocy.org.pl< slh January 2013 Honorable Justice !ftikhar Muhammad Chaudhry, Chief Justice of Pakistan, Supreme Court of Pakistan, Constitutional Avenue, Islamabad. Attn: Human Rights Cell Sub: Prayer for taking SUO MOTO action on forthcoming Financial NRO in form of two blanket tax amnesty schemes. voluntarily ta.x registration and yoluntarv declaration of assets Respectfully Sheweth, , My Lord, the Transparency International Pakistan prayed on 14th November 2012 that the Honorable Chief Justice of Pakistan to take a consider a Suo Moto Case on FBR proposal of two blanket tax arnnest)' schemes, voluntarily tax registration and voluntary declaration of assets, to raise a few extra billions, irrespective of its adverse implications, and at the cost of honest tax payers. In 2008 only Rs 1.54 billion were collected by FBR on Rs 77 billion illegal money was declared under that amnesty scheme, whereas FBR estimates to collect Rs 150 billion through this amnesty is false and a total lie, as it will require Rs 15,000 billion illegal money declaration. Daily Dawn has reported on 5 January 2013, that the Controversial tax amnesty bill finds way to NA (Annex-A). Following arc the excerpt from the news report; The comroversial bill meant to provide opportunity to millions to whiten their black money finally found Us way to the National Assembly on Friday, butthe fale ofthe bill still hangs in the balance with two key partners ofthe ruling coalition including MQM and PML-Q joining hands with the main opposition PML-N in rejecting the proposed amnesty scheme. The opposition by the coal ilion parmers has at least blocked prospects for a smooth sailing ofthe bill in the National Assembly. The lfouse adopted tflrouglt voice vote a motion seeking to approve recommendation to the National Assembly on tax laws (amendment) bill 20 I 2. The same news has also been reported on 5 January 2013in another newspaper, The NEWS, (Annex-B) and following are the excerpt from the news report The ruling PPP was 011 Friday left high and dry in rhe Senate on the Tax Laws (Amendmem) Bill, 2012 (also known CIS Tax Amnesry Bill), for not only the opposition parties but also its ow11 allies strongly opposed it, saying it was an undue favour to the elite in the run-up to general elections. The govermnenJ allies alleged that through these amendments the Federal Board of Revenue (FBR) was being made an SHO and the government was surrendering its powers to it. The senators on both the sides of the divide said the bill could not be called a money bill. A PML-N senator described ir I A NON-PARTISAN, NON-PROFIT COALITION AGAINST CORRUPTION Donations exempted from lax U/5 2 (36) (c) ot I . Tax Ordrnance 2001 ~TRANSPARENCY Continuutiou S!tl'et .\'o ...... '(~:/INTERNATIONAL-PAKISTAN a financial NRO, which would meet its fate. In loud and clear voices, PPP allies- MQM, ANP and PML-Q- opposed the propoj·ed bill, questioning the haste the government was showing for its approval from Parliament, and cautioned this would encourage the tax evaders. The proceedings were marred by token walkouts by the government allies, including ANP and BNP-Awami. The Senate's standing commiuee on finance, headed by Ms. Nasreen Ja/il, also remained divided on the issue but it approved the proposed bill a majorily vote i.e . .f-2. The Awami National Parry senators walked out ofthe House after Senator Nasreen presented her committee's report on the bill and made it clear that her party was opposed to the amnesty to those who had assets worth millions ofrupees but they would pay merely Rs-10,000 to whiten them. Abdul Nabi Bangash said they would not become part of the proceedings. Taking the floor, leader ofopposition Muhammod Jshaq Dar charged thai the bill would promote lax evasion ond this would further hit the already dwindling tax-to GDP ratio. He said 1he FBR had indicated 10 take action after identifying 2.9 million rich people. He claimed through adopting a normal procedure of bringing these people into tax net, FBR could collect at least &1500 billion instead ofmere RsJ08 billion by charging jus/ &40, 000 from 0.2 million persons. "On this particular issue, my party stonds with the opposition. Tax amnesty is in comradiction ofthe principles ofequal taxation. The bill should be deferred, as we will oppose it when it is put to vote," asserted PML-Q Senator Mushahid Hussain Syed MQM's parliamentary leader Tahir Hussain Mashhadi said his party would strongly oppose this a/tempt ro protect what he called thieves, landlords, capitalists and businessmen. He wondered how the lawmakers could be law-breakers, as this law would encourage the rich to break the law at will to evade taxes". P ML-N 's Rafiq Rajwana said that all those silling in the House know that through this bill the biggest thieves would get token punishment for their crime. According to the Center for Investigative Reporting in Pakistan (CIRP); tax report of MNAs and Senators prepared by Umar Cheema for CPDI ( Annex-C), out of I 04 Senators 62 Senators are non filer of Tax Return. (page 39-44). The llonorable Court is requested to examine the unconstitutional act, that the Tax Laws (Amendment) Bill, 2012 has been passed by Senate, majority of which (over 60%) are Tax defaulters according to the ClRP report, who should have been dealt by FBR according to the provisions of Income Tax Ordinance, 200 I, section 191, and resultantly the Election Commission of Pakistan under the Constitutional provisions of Articles 62 & 63 should take action to de-scat all parliamentarians who are proved to be tax defaulters. 63 (o) e or his spouse or any of his dependents has defaulted in paymem of government dues and utility expenses, including telephone, electricity, gas and water 2 TRANSPARENCY Co11rinuarion Slll.'t'l .\o...... INTERNATIONAL-PAKISTAN charges in excess of ten thousand rupees, for over six months, at the time offiling his nomination paper A repon by Dr lkramul Haq Advocale Supreme Court International Tax Counsel published in Business Recorder of 4th January 2013, ( Annex-D) has stated following laws for ta-... evaders; As we mentioned in our column of 21 December 2012, on discovering lapse on the pari of legislators, il was the duty of FBR lo promptly issue notices under the Jmv to all rlw:>e who failed to file their tax returns with wealth statements. If it is tme that 70% of Pakistani legislators- members of Senate and National Assembly- violated section 1 I -1 and 116 of !he income TaY Ordinance, 2001 then FBR is equally guilty what has prevented the concerned Commissioner(s) to issue notices under section I 14(3) and I 16(1) of the Income Tax Ordinance, 2001to these defaulters? The act of non-filing of return and wealth statement attracts prosecution proceedings as well ll'hich are contained in section 19/(l)(a) oftlte Income Tax Ordinance, 2001. It reads as under: 19/. Prosecutio11 for 11011-compliallce with certain statutory ob/ig(l(ious Any person who, without reasonable excuse, j(1ils to- (a) comply wilh a notice under sub-section (3) of section Il-l or sub section (1) ofsection I 16; (b) ...... ······ ·· ···· shall commit 1111 offence puuisltahle 011 ctmvicthm with a tine or imprisonment for a term 110t exceeding ane year, or botlr. The 2008 Tax Amnesty Scheme was misused, and Federal Tax Ombudsman had also warned FBR vide letter dated 20 March 20 I 0 to ensure proper monitoring of tax payers who filed declaration, and also monitor for mandatory 3 years tax filing requirement, failing which amnesty claimed is to be rejected. It is reponed that FBR did not identify a single case of violation out of more than 10,000 claimants. Sincerity ofFBR is doubtful. Transparency International Pakistan again request the Honorable Chief Justice of Pakistan to take a consider a Suo Moto Case and stop this alleged unconstitutional bill to become an Act of parliament, whicb is supported by only ONE Political Party in Senate on S Jan 2013. Transparency International Pakistan is striving for across the board application of Rule of Law, which is the only way to stop corruption. An indulgence of the Honorable Coun in the matter is prayed for. Encl: Annex A, Annex 8, Annex-C, Annex-O 3 1/5/13 Controver$ial tax armesty bill finds way to NA I Newspaper 1 DAWN.COM 0•"'" oorn I Down Urdu I OawnN ws 1V I ePaper Hetllld j Cll;f'MB9 I Ewnl& I Dawn Rell"f I Saturday ~Ill Janu1ry 2()1 J j Saf;u 22. 1434 ANNEXURE-A HI:.AOUNES ~~ Controversial tax amnesty bill finds way to NA From me P~ews paper flllikhar A Khan 18 ho~ 1go 0 o r T~0 ISLAMABAD, Jan 4: Tho controversial bill meant to provide opportunity to millions to w hiten tholr black money finally found Its way to tho National Assembly on Friday, but the fate of the bill still hangs In the balance with two key partners orthe ruling coalition including MQM and PML·Qjoinlng hands with the main opposition PML·N in rejecting the proposed amnesty scheme. The opposa\ion by the coalition parlners has allea&l blocked prospeciS for a smooth sailing of lhe b1llln lhe Nahonal As:serl'tlly. The House adopted through voice vote a motion seeking to approve reC01mlendatlon to the National Assembly on lax laws (aroondmenl) ball 2012. Fmanca Minister Or Abdul Hafeez Sherkh. In his reply to objections raised by friends afld foes, brushed aside an imptession lha t the biU aimed at protecting the rich. He argued that there were only 800.000 taxpayers in the country and the stop would bnng a subslantiel nurnoor of people into the tax not. He sa!S IJH) b~l oould be thoroughly debated rn the National Asseni>ly and a elocted representatives alone 'M>uld make a declston. The minister said the governiT'II!Int dld not want to give unbriclled po1M!rs 1o the Fuderal Soard or Re11enue (FBR) v.tlich could be used to harass th .. people. Dr Sherkh said the people to be brought lnlo the tax net v. Re,ecllng crrhC1sm or the government for corring up ....tlh tho plan only allhe fag end of liS tenure, he said members of the parlrament "-QUid continue to draw salarres ror legislahon. "We v.IU continue to parform our duty tsll the last di!y In governroont." Ha said !he move would not benefit the lncurnt>ont government. but would certainly be benenclal for the ,ncorring government after the polls. The l1nance mn1ster said tho tax- to-gross dome·suc product (GOP) ratio had improved and revenues generated through taxes nsen by Rs 350 billion lasl year He agreed that honosl taxp;~yers should be respected and grven incentives. Hale~~ Sheikh satd the governmont ....anted to l~trllt the number of taxes to two. The number or income lax slabs had been re ------Earlier, chairperson of the senate's standing corrvnlttee on finance, Senator NiUireen Jal~. presented a report of the committee on the tax lav.s (amendment) bill 2012 in the House. She said she and her party were against the blll and the Senate should not make any reoommendalloo to lhe National Assembly on it EVEN-HAN)ED APPROACrt Opposing the bJI, leader of opposition in the Senate, Mohammad ls.haq Dar. said the CBR had a credible data of 2.9 million people to be brought Into the tax net. ·we plan to adopt the normal process for 0.2 million and give armesty to rest of tlhe 2.7 rrilllon at the cost of Rs 1 to 1.5 mlaion of undeclared money: He was of the view that an evon-handed approach should be adopted for all the 2.9 mlioo potential taxpayers. A bill th9t discnrrinates betv.een tax evaders was bound to be set aside by the court even after passage. the ~nator said. He said Jt should no I have been declared as n'Kl'ney bl~ . lshaq Dar said the law the government Intended to pass at the end of Its tenn could be misread as a concession for partiamentarians. He said it was M>t n prerooativa of lhe outgoing assembly to pass IGglslatlon IM'lich was flav.ed otherv.lse as v.en The government v.ented to get around Rs 100 b~liOn from people v.no should pay Rs 1 to 1.5 trl~lon instead. "The FBR should proceed against a• potentiallallpayers under the normal law and reconsider Its amnesty &<:heme." Mt Has~ 812enjo of 1he ~tional Party also opposed tile proposed amnesty s.cheme and observed that (t should be left for tha next government to decide. Col (Retd) Tahir Mashhadl, opposing the biN, said a mooey bill under Article 73 of the Constitution had to be simullaneoosly tabled in both the houses of parliament. Potnltng out that the National Assembly was not even in aession, he saidlt v.es a blatant violation of the Conslltutton. "How can la\\makers be law-breakers,' he \\Ondered. HO>.tt. LATlST riEWS PN Opluio~ Slog Forum .tt~lws ln-deplh Crltkot Fooll>all Tho Year End: Dawn :W 12 Newspa~r Yeat End Sfl RafJQ R;~jwane of PML·N termed the proposed 5dleme a "financial NRO". He said he was at a loss to understand under v.hat compulsion the out{l<>mg government -.nte Mushah1d 11Jssain Sayed. sec:Tetary general of the PML_ a. concurred "'lh the opposition, declaring thai his party \\0\lld vole against it. lntenor Minister Rehman Malik told the house thai 90 par cent ol slum dwellers 'M'tre Afghan refugees. He said footprints of many handlers and facilitators of suick:le bombll\gs led to sh.lms. MOBILE PI-ONES: Rehman MaUk defended the decision to suspend rnobie phone service, sayin Chaudhry Jatfar Iqbal. v.ho has been elected unopposed as Senator on a seal In Punjab that fell vacanl otter the death of PPP's Salahuddin Dogar, took oatlh as mell'ber of the House. Another. highlight of the proceedirJgs was a token walkout by PPP stalwanllllan Raza Rabbanlln protest against the "attitude of the KESC management". He accused the KESC of running a state 1'-ltlhin a state. The senators from Awani National Party also Joined tl18 walkout The session was prorogued sine die. Sher• thla: Uk•lhls: j*LbJ S.lhelrstto likAI thlt. ANNEXURE-B e-pAPER IFc;;_ro-se_W_In-do-w-, Saturday, January 05, 2013 Allies abandon PPP on tax amnesty bill I Uke Be tl1e first of your friends to lil • ISLAMABAD: The ruling PPP was on Friday left high and dry In the Senate on the Tax Laws (Amendment) Blm, 2012 (also known as Tax Amnesty Bill), for not only the opposition parties but also its own allies strongly opposed it, saying it was an undue favour to the elite In the run-up to general elections. The government altles alleg.ed that through these amendments the Fedel(!l Board of Revenue (FBR) was being made an SHO and the government was surrendering lts powers to it. The senators on both the sides of the divide said the bill could not be caled a money bill. A PML-N senator described 1: a financial NRO, which wouk:l meet its fate. In loud and clear voices, PPP anies- MQM, ANP and PML-Q - opposed the proposed bil, questioning the haste the government was showing for its approval from Parliament, and cautioned this would encourage the tax evaders. The proceedings were marred by token walkouts by the government aiDes, Including ANP and BNP Awami. The quest ion hour was also given a lacklustre attitude ~due to non-availability of the ministers. But despite repeated requests by the treasury and opposition senators, chainman Senate Syed Nayyar Hussain Bokhari declined to suspend any absentee minister for a day from attending the House proceedings. The chair instead asked the leader of the House Jehanglr Badr to take notice of the unfortunate trend, who in return again asked him to exercise his powers on thiS count. Senator Mian Raza Rabban i reminded the chair about his powers but the chairman saK:J he wouk;l first talk to the prime minister on the Issue. The Senate's standing committee on finance, headed by Ms. Nasreen Jam, also remained divided on the ISSue but it approved the propose.d b~l a majority vote I.e. 4-2. The Awami National Party senators walked out of the House after Senator Nasreen presented her committee's report on the bll and made it clear that her party was opposed to the amnesty to those who had assets worth m~llons of rupees but they would pay merely Rs40,000 to whiten them. Abdul Nab i Bangash said they would not become part of the proceedings. Taking the fbor, leader of opposition Muhammad Ishaq Dar charged that the bill would promote tax evas10n and this wouk;l further hit the already dwindling tax-to-GDP ratio. He saK:J the FBR had indicated to take action after K:Jentifying 2.9 mill'ion rich people. He claimed through adopti"lg a normal procedure of brlngtng these people into tax net, FBR coul::l collect at least RslSOO billlon instead of mere Rs108 billion by charging just Rs40,000 from 0.2 million persons. "On this particular issue, my party stands with the opposit'ion. Tax amnesty is in contradiction of the principles of equal taxation. The bill should be deferred, as we will oppose it when It is put to vote, " asserted PML-'Q Senator Mushahid Hussarn Syed. MQM's parliamentary leader Tahir Hussan Mashhadi said his party wouk;l strongly oppose this attempt to protect what he called thieves, landlords, capitalists and businessmen. He wondered how the lawmakers couk;l be law-breakers, as this law would encourage the rich to break the law at wm to evade taxes". PML-N's RafiQ Rajwana said that aU those sitting fn the House know that through this bill the biggest thieves would get token punishment for their crime. F111ance Minister Dr. Abdul Hafeez Shlekh strongly defended the bill and assured the House that the committee's recommendations wouk;l be accommodated when it were to be ta~en up by the National Assembly. The minister said that only 0.8 mUllan people in Pakistan paid taxes and noted the basic aim of this law was not to give amnesty to the rich but to bring him into the tax net. He clarif.ed that the beneficiaries thereon would continue paying taxes after availing this one-time opportunity. He sought the parliamentarians' help In netting the 2.9 million rich people, who held multiple bank accounts, lived in posh localities and tl(!velled abroad frequently but did not pay taxes. He also noted the government was not giving sweeping powers to FBR and would l1ke to continue giving respect and honour to the honest tax-payers and Incentives too. The miniSter said that the tax-to-GDP ratio increased last year by Rs350 biDion. He added 392 duties A ll~ · abanctoo PPP 0<1 ta• am nos ty bill and 100 special duties were abolished, as the government wanted there should be only two taxes. He also made it clear that it was the government's utmost effort that the tax authorities should not harass people . On a po tn t of order, PML-N Senator Syed Zafar All Shah raised the isSlJe of Increase in Prine Ministe r's discretionary fund by slashing funds for other projects, including Bhasha dam. In this connection, he quoted a report by The News economic correspondent Mehtab Haider. He lauded that the reporter managed to get the Information while his simple question about how much was the Prime Minister's discretionary fund was dumped by the Senate Secretariat, as the question was declared vague. The senator wanted the finance minister to clarify what exactly was the Prime Minister's discretionary fund and said he was not asking how much he had spent tn his Gujar Khan constituency. The ministe r, however, did not respond. BNP-Awami senators walked out of the House against Prlme Minister's inab~ity to give them t ime for a meeting. During the question hour, Rabbani wal Be the f•rst of your fnends to hke this. Share 1m age~ .tt\ene·;.,. com. pkl05-0 1-20 13Jelhene'Milt-20023.htm #. U OeV I Jf zn s.gmail 2. ANNEXURE-C R E p R E sr- ~:J TQ ~I I r- T . · ~ ~ . axatton ~ AN ANALYSIS OF MPs' INCOME TAX RETURNS FOR 2011 Appendix 1: Income Tax Status of the PM and Federal Ministers # N.1me Portfolios Tax Paid (Rs.) 1 Raja Pervez Ashraf Prime Minister 142,536 2 Ha)l Gnu lam A:hmad 611our Railway5 Non· filer 3 Dr Arbab AJamtw Khan CommunlcatloM Non· flier 4 Mir Changez Khan Jamall Science and Technolot~Y Non·f,ler s Engr. Shaukat Ullah States and Frontier Regions Non·f1ler 6 Ch . Parvez €lah1 Dl!puty Prtme Mlni$ter (i} Industries Non·f1ler 7 Ch. Anwar All Cheema Production 67,024 8 Ran a Muhammad Farooq Saeed Khan Olmate Change 97,3&8 9 She1kh Waqqas Aktam Education and Trainings 470,906 10 Ch. Uaqat Abbas Bhatti Works Non·f•ler 11 Ch. Wajanat Hussain Human Resource Department Non·Filer 12 Ch. Ahmad Mukhtar Water and Power 1,090,902 13 Ch. Qamar Zaman ICai~ Information and Broadcasting 83,837 Capltill Admlnlstnltion and 14 Nazar Muhammad Gondal Non·Filer Development 15 Dr. firdous Ashiq Awan National Regulations and Servk:e.s 101,651 16 Sa min a Khalld Ghurki National Heritage and Integration Non-Filer 17 Sar 22 Syed Khurshid Ahmed Shah Religious Affairs 43,~33 23 Ghous Bux Khan Mahar Privatiz.ation 131,052 24 M1r Hazar Khan Bijar;~ni Inter-Provincial Coordination Non-Filer I 25 Makhdoom Muhammad Amin Fa him Commerce Non·Filer 26 Syed Naveed Q~tmar Defense 95,966 27 Haji Khuda Bux Rajar Narcotics Control Non-Filer • 28 Dr. Muhamm•d Farooq Sattar Overs;eas Pakistanis 101,232 29 Sardar AI-Hai Mohammad Umar Gorgage Postal Services N()('l·filer 30 Jam Mlr Muhammad Yousar No Portfolio Non-Filer 31 I F;,rzana Raja Benazio ln t ~--~~------ 32 A. Rehman Malik Interior Non-Filer f) finance, Revenue and Planning and 33 Abdu l Hafeez Shaikh Development ill Economic Affairs & 174,076 Statistit:s 34 Babar Khan Ghauri Ports and Shipping 555,104 I) Law and Justlce,ll) Parliamentary 35 farooq Hamid Naek 8.5,491 Affair 36 Mir l~rarullal'l Khan Zehrl National food Security and Rese<~rch Non-Filer ·- 37 Moula B<~khsh Chandra Ponllcal AHalr> Non-filer Appendix II: Income Tax Status of the State Ministers i N Name Portfolio la• Paid (Rs.) 1 Sardar Shah Jehan Yousar Prolesslonal & Technkal Training Non·flter 2 Malak Atmat Kl'lan Inter-Provincial Coordination Non·fller 3 Sarclar Salim Halder Khan Defense Non-Flier 4 Ch. Ghlas Ahmed Mel a Human Resources Development Non·fller s Tasneem Ahmed Qureshi Water & Power 91.069 6 Nawabzada Malik Amad Khan Foreign Affairs 166.479 7 Rahela Baloc:h S.dence & Technology Non-Filer s Rana As.Jf Tauseef Works Non-filer 9 Ch . lmtiaz Safdar Warriach Interior Non·Fiter 10 Syed Sum~m All 5. Bukhafl Information and Broadcasting Non· Flier 11 Malik Niluman Ahmad Langrlal Housing Non-Filer 12 KhawaJa Sheruz Mahmood Production Non-Flier 13 Mir Oos1 Muhammad M:uarl Communications Non-Flier 14 Muhammad Moazam All Khan Jato1 National Food Security and Research Non-Filer 15 Or. Nadeem Ehsan Ollerseas Paklstanls Non·FIIer 16 Akram Masih Gill National Harmony Non· Fifer 17 Abbas Khan Afrldi Commerce 11,528,292 18 Sae Appendix Ill: Complete List of the Senators and their Income Tax T;ur Paid jj Name Party NTN CNIC Remarks I (Rs.) ;- 61101- 1 A. Rehm01n Mal1k f>PPP 0660490·7 Non-Flier 6693646·3 •. • I .. '. 22401· 2 Abbas Khan Afrldl Independent 11,528,292 1068268·6 Filer 1805262-3 I 43102- - 3 Abdul Hi!feez Shaikh PPPP 174,076 1506252.() Filer 3851334·1 .. 42201· 4 Abdul Haseeb Khan MQM 1,245,197 0655251.() filer 7147924-1 90406· 5 Abdul Nabl Bange»h ANP 3258513--6 Non-Filer 114105-5 61101· 6 Ad nan Khan pppp 70,435 2711578-o Filer 8592662-1 Muhammad Oaud Khan 54202· 7 ANP 2643998·7 Non-Filer Achakza1 I 1096202-7 I 17301 · 8 Afras•ab Khattak ANP 2713095·9 Non-Filer 8046238·5 t-·-~ 15302· - 9 Ahmed Hassan PPPP 1625615·8 6262319·5 Non·Fil~ r Non- I filer(Tax 35202· 10 Aitza.z Ahsan PPPP 12,975,996 0454209·6 datafram 2514439-7 nomination paptrs} 42301· 11 Almas Parveen PPPP 2070525 Non-Filer 0585881-6 15602· 12 Amar Jeet ANP Non-f1ler 1163070-7 42101· 13 Baba r Kha" Gha uri MQM 555,104 2342639·0 Filer 0279984·7 11101- 14 B;u Muhammad Khan ANP 2713034·7 Non-Filer - 2781024·1 Chaudhry Shujat 61101· 15 PML 0226166-9 Non-Filer Hussain 8085268·7 Non-Fil;-1 (Tax dot a I Col (R) Syed Tahir 42201· 16 MQM 78,000 0992247-4 from Hussain Mashhadi 0754931-1 ' nomination f-· paper~ -~· -·-- 42101- ·- Or, Asim Hussa1n pppp 673,387 0537332·8 Filer ' 11 I 0992023·7 Or. Muhammad faro:gh 42301· 18 MQM 4,565,137 0782432·7 Flier I I Naseem 1247735-9 Engr. Malik Ra>hid 61101· 19 Independent Non-filer Ahmed Khan 743160Q-9 Engr. Muhammad 42301· 20 Hamayun Khan Independent 30,104 1161776-4 Filer 9520191-7 Mandol(hel I 17301· 21 Farah Aqll ANP 3646765-7 Non-Filer 1288479·6 - 17301· 22 Farhat Abbas PPPP 1147050-0 Non-Filer 9083618-2 40 Non-Filer I (Tax data 61101- 23 Farhatul lah Babar PPPP 455,195 0336549·2 from I 54 54793·9 nommation I I papets) T -- - · ~ -- -- I I 42301 - 2.: Farooq Ham1d Naek I pppp 85,491 2096071-9 F1ler - --- - 6345946·9 ·- -·- 42301 25 Gul Muha mmad Lot pppp 1227468-2 Non-Filer I 5716621-1 12101· 26 Guizar Ahmed Khan pppp 193,368 I 0329604-7 Filer I 0972886·5 - I 54201· n Hafiz Ha mdu llah JUI-f Non-Filer t • I 4851397-7 . -·-- - ~·-- L 17301· 28 Haj1 Ghulam Ali JUI-F 1197630·6 Non-Filer I 1675961· 1 ·- - 21201 - 29 Haji Khan Arnd 1 Independent 1772039-7 Non-Filer 9166262·1 - 17301· 30 ANP 55,024 0713005·8 Frier "''' Mohommod Ad"l ~ -·- 1661796-3 l --- 61101 31 - ~usha hid Hus sa1r1 ~e d_ _ f> ML 82 29 55343·1 F•ler 214695F ·9 ------33301 -~ n HJmza PML ·N 1887605-6 Non-Filer I 77539&9- 3 ·- ···------.-- - I - - I Non-Filer (Tax dora 42301 33 Han Ra m pppp 14,144 3351341-4 from 3688710·7 nomination papers) I f- • 3~- -- 53402 - Heman Dass JUI ·F 18865810-0 Non-Filer - -..- 9589849-5 I 21105· H1dayat Ullah Independent 1068190-6 Exempted 35 L I 1993779-7 I - r -- I - 17301- 36 Hdal-u r-R ehman Independent , 3944200-4 Non Ftler 7922609-7 --1 - _L ---· ~- 17301 · 37 lly as Ahmad Bilour ANP 280,241 0800930-9 Filer 1584493-9 - ·- pppp 45504 38 Is lamuddin Shatkh 407,374 0903137-5 Filer T 2238311·9 --..., - 54400- 39 Ka lsoom Perveen BNP-A I 2.515276-9 Non-Filer I 4917952-0 35202- JQ Kamil All Ag ha I PM L 12,525 868672 Flier 7280568·9 - I Non Filer (Tax data I 352.02. amran Mtehael I PMl·N 157,933 1433780·7 from 3699448-7 I nominatiOn I I -papers) j Non -Flier I I (Tax: dora 42201· 42 Kanm Ahmed Khawaja PPPP 3,636 1506264-3 from 0752087-7 nommoflon ~-- I papers) 43 Khalida Parveen pppp 6ll0l· Non·Filer 8102887-4 l 36302 14 Malik Muhammad PML·N 1 118 599 0111966·4 . Ftler Rafique Ra)wana ' • 5200664·? l... ~ 14301· I 45 Mahk Na)mul Hassan lflde~ndent Non-Foler 6239074·5 _j -r- Non·Filer 1 (Tax. data Hajt Sail Ullah Khan PPPP _ .0 61101· from r45 4 063 2804410 Bangash 2026225·5 nommar;an 1 I ------papers) I 42000· .... •l7 M1an _Ra_l_a_R_a_b_b_M__ ' _-l---P-P_P_P__ +-_8A_6_.4_7_4_+-_l_s_o_s_88_9_·_1_+-_ 7...;1:....4""2.:..50.:..2;;...._,_1-- F1ler l 42201 ~ •IS _ M~r Hasd Khiln Btzenjo NP 2780959·5 ' Non-Filer 7656509·7 Mlr lsrarullah Khan 51401 49 BNP·A 1805636-9 " Non-Filer Zehn ---·,.---- 4684159·9 Mir---- Muhammad Ali -·--·1------~·------+------~------~52204 ;- BNP·A 2304241·9 ' Non·ftler Rind 1057188·1 M•r wan Muhammad 54102· l f 51 lndependl!nt 88 556 0685158·4 L ---F1ler I- -~S~a~d~ifl~i ____r------+----·--4!------+~5~8~0~35~6~1~·1~4------M h d I h 0 PML·N 32,750 0657857 8 JSZOO· filer ~ -52 o amma s aq ar . 0593685·9 I I 5~:olam) ~~:~~Ghafoor JUI·F 0823049-8 3:318~3~·9 Non·F•Ier 41303 54 Moula Sakhsh Chand•o PPPP 2920979-0 . Non·Filer 1j 6600427·1 ss Moulana Muhammad JUI·F 56503· Non·fller ~ Kh~a _rl~S_he~r~a~n_i---4------+------+------+---94_9_0~5-1_7·_7 __ +------~ 51602 56 -~ Muir• Abd- ul S 42 Muhammad Talha 61101· 53 JUI·f 7,603,719 1711789·5 flier Mehmood 7299962-7 42301· &4 Muhammad Yousaf pppp 12,660 0613855·1 filer 9524204·7 Muhammad Zalar Ullah 38101· 55 PML·N Non-Filer Khan Dhandla 0592358-3 . 15302· 66 Muhammad Zahtd Khan ANP 3822380-5 Non-Filer 0928335·1 Mukhtiar Ahmed 44204- 67 pppp Non-Filer Dhamrah 7943393-5 S44()(). 71 Naseema Ehsan BNP·A 4,280 2823780·3 Filer 2820536·0 61101- 69 Musnahlcl Ullah Knan PML·N 0607049·3 Non-Filer - 9012988·1 37405- 70 Najma Hameed PML·N 1534006·6 Non-Filer i 4158939·2 Malik Salah-ud-Din 36302· 71 PPPP 8,659 1370802-3 Flier Dogar I 5549639·5 • 42301· 72 Nureen Jalll I MQM 0531548·4 Non -Filer ! 2551892-8 I Nawabzada Haji Mir 25-02· 54400· 73 pppp Non-Filer Lasnkari Rai sam 9232624-7 - --- 2029161 Nawabzada 53302· 7~ Muhammad Akber Independent 2582498-8 Non·FIIer 3173437-5 Magsi Nawabzada Saifullah 54400· 75 pppp 3930266-7 Non-Filer Magsi 2374759·3 17301· 76 Nisar Munammad PML·N 2388017-1 Non-Filer 8303615-9 i 61101- 77 Nuzhat Sadiq PML-N 605,946 3008517·9 Filer . - I 0844061-4 61101· 78 Osman Saifullah Khan pppp 1,795,874 0006494-7 Filer 1787746-3 ---; 35201· 79 I Pervaiz Rashid PMl·N Non-Flier 0637920·1 34603· -;-1 Prof Sajid Mir PML-N 125,588 0394415-.8 Filer 2114344-5 Raja Muhammad Zalar· 61101· 81 PML·N 46,804 0660530-3 Filer ui·H~q 6232697-5 Non·Fller (Ta11data 54400- 82 Razl Khan Kakar pppp 297,831 1459018·2 from 6638979-9 nomination papers} - 54400- 83 Rubina lrfan PML 2210706-1 Non-Filer 9596015·8 . . Non-Filer (Tax data 61101· 84 Rubina Khalid pppp 2.90,000 2210706·1 from ! 2301761 nomlnatioll po~rs) 54400. S.lblr Ali Baloch Pi>PP Non-Filer l 85 098746!-3 42301· 86 Saeed Ghani PPPP 0828679·5 Non-Flier 3600342·1 61101· 87 Saeeda Iqbal PPPP 3687973 Non·FIIer 1824309-6 Saeedul Hassan 54400· 88 PML 1806938·0 Non-Filer Mandokhail 0725370-9 17201· 89 S.lrdar Ali Khan PPPP 2387550.0 NOil·Filer r- 1374520·7 Sardar Fateh 54400· 90 Muhammad PPPP 3661164-6 Non-FI~r 1833660·1 Muhammad Hassanl . 42000· 91 Sehar Kamran PPPP Non-filer 6157665-4 42301· 92 Shahl Syed. ANP 0294146-5 Non-Filer 0749021-7 42301· 93 Shlrlti 0.09 OAWH JG.l21500 0.23 OOKC 50 1811000 1.35 OSR. 1.9011600 o.oa ENGRO 96 601300 0 91 AJI /j> !search ... l'akist;111's l'n:m•~.:r Fmancial D.:uly unlimited CALLS Just ln: lb.dw.t~ns.ka has Auckl1nd tW• ht the b1g (O" :ll) Tax delinquents 'Jr•u The real test I'I OW \\ill be thai of Chal.rman FSR - v.he ther he co~ l les \\lth the recolt'lrl'MlndaltOn of FTC or chooses to Ig nore IL lklfortunately. many people v.tlo clolm to be authority on the Consbtubon or Pakssta n reaffirm the \'ASdom C011Lalned 1n an age-okl Urdu Idiom neem hakeom khatra-e-Jaan (a qu ack poses threat to human ~re ). On the basis of their half-cooked kno-Medge, we ""II have lo substitute the v.ord haio.oom 1\Uh al •m (scholar) - one having lnadoquale knov~edge of \he supremo law of the lan(j posing disastrous resuils ror the democratlc setup and rul& of law In a counlry thai has al\\ays been vulnerable to dictatorial and authoritarian dlspensallons. The teJ i1 re al1ty, TV archer did not say th at lhere w;;~s nothing m tho law to deal \Mth tax delinquents. He v.'clS JU St saying tha t th•s counuy Mel " pnme rran 1.5ter v.ilhout NatiOnal Tax number (NTN) and nothing htlppened. That anchor further a1gued that even the knooo corr~pl agaln&t vtlom the apex courl ordered proceedings under the law survi\leo and ro~MJr!led, v.nal to talk of punishin!J non-filers or tn come tax returns . Responding to th1s. Dr Tahlr-ui·Qadrl quoted Article 62(() of Conslitullon that debars such elementS from conlesHn g elections in the Income Tax Ordinance, 2001, the following specific punltlvo provisions exist that deal with tax delinquents who foil to fil• their tax returns: Section 182(1 ) - olfences and penalt•es "Any person v.Mo commts any offence specllled in coi\Jmn (2) of the Table b-elow shall, In addition lo and not W1 derogat.on of any punishment to \'Allcl1 he may be tiable under this Ordinance or any other law, be liable to the penalty mentioned against that offence In column (3) thereof: "Elqllanation.- For the p1Jrpo5es ol this entry, It Is declared that the elqlresstOn "t3x payable" means tax chargeable on the taxable ncon1e on the basis of assessment made or treated to have been made undorsecllons 120, t21, 122 or 122C". wbroccrde r. com'arllcles-a·letters/18 7:aruclesl1 139619:tax-deilnquenlsl?dateo:2013-01-04 1(5 15113 Tax del1nquen\sj Business Recorder e..... , X49 SectiOn 182(2) reads as under· S1•r\tlg lf. "The penaltlo~ spec:.fied unoer sub-section ( 1) shall be applied In a consistent manner and no penalty Yon 11.1:.00 shall be payable unless an order In \\fitlng ls pas5ed by the Commssioner, Commissioner (Appeals) a. ... \~$4 )(.tO or the Appellate Tnbunal after providing an opportunity of being heard to the person concerned: c.,... TSOSpa)•er adm1ts. his default he may voluntarily pay the amount of penalty due 0<1 u.u under th 1s seCtion·. As v.e mentioned In our column or 21 December 2012, on dls.cover1ng lap~ on the part of legislators. It \'r.I.S the duty of FBR to profll)tly •ssue notices under the Law to all those ....no failed to file their tax returns v.4th y,ealth statements. ~ IllS true that 70% of Pakistani legislators • members of Senate and Ill~'''"' Nalional Assembly- violated sec!lon 114 and 116 of the Income Tax Ordlnanco, 2001 tl'ien FBR Is RECORUER equally guilty - v.tlat has. prevented the concetned Comrnsslonet(s) to Issue noUces undet secuon ·-······ rr.., 114(3) and 116{1) of tho Income Tax Ordinllnce, 2001 to these defaulters? The act of non-filing ot r ..., Adc~ reiiJrn and "'ealth statement attracts prosecution proceedings as v.vll '"A11ct1 are conta1ned Ill sectron China Tra019 I I¥Joncy 191(1)(a) of \he lncorroe Tax Ord nance, 2001 ft reads i:lS under cMep owl'long oreil Trade Leado ChinO : 91 P10secuhor for n on-comp~ance 'Mih certain statutory oblogatrons Jobs Ch!Jla Wholu~lo N!y parson who, without roasonabto oxcuso, I ails to: \ICtomor.l fern me pas CI>Ot (a) comply v.1th a notice under sub-section (3) of sect10n 114 or sub· section (1) of section 116; Irob t ne~ne balgno.re 1OtiLino Shoppino (b) ...... (akutan! ClassJCieas shall convnt an offence pun1shablo on convoction v.4th a fine or imprisonment for a term not eJIX:eeding one year. or IJ.oth. In case the default of non-filiJ\9 of return and v.oaltl1 statoment continuos even after punishment under section 191(1)(8), sub-section (2) of secllon 191 provides furti'ler ac!lon as under: (2) If e person convicted or en alienee under clilu:w (e) of su~sechon (1) felts, '"thout reasonebfe excuse. to furnish the relurn of income or '~alth statement to v.hich the offence relates "''thin the per.od spec1fiod by IIlo Court. lho person shall co111m1t a further offence punishable on conviction wth a (iiH; not e>.COedlng fifty thousand rupees or Imprisonment lor a term not exceeding t'Ml years. or botl1' The aoove prov1stons of the Income Tax Ordmance, 2001 are unambiguous and more than adequate to oeat Y.lth tax delHlquents These havt:. unfortunately. not been 1nvokea In lhe case of holders of public ot11ce as t11oy reprosont thtl mighty Stlctlon of society \\ho have mDdB things V.Qrse by callmg leakage of Information as "breach of pnv1Jege". Further oorsening the srtuahon. some self-assumed scholars daunng to be authonty on everytl1ing • from religion to law. from morallly lo constitution. are tol~ng us that slnce laws are not being Implemented "they are justified to cake things directly In 1'1elr hands" This IS t11o oorst one can e>pocl from legislators, FBR and champions of reforms! Many supporters of "reformation movement" (sic) of Or Tahlr-ui·Oadrl are silting In the Senate and Parliament and hava allegedly not filed incomo tax returns 11nd maltl1 statements. How can they Justofy JOinlng tl1e cause of purging elected houses? They ore not even eligible to sit either In the Senate or Partlamont. 1'1 all the leading democracies of the 'Mlrld, law.~ CX1St \lotuch ensure t.h11t people seeking votes are ropresentallves of the masses afl cl should be men or character. Discharging of tax obDgatiOns Is a requirement of law or the land (reproduced above) and its violation by any individual attracts pr~visions of Article 62(f) of the Constitution of Pak1stan v.nlch says. "A person shall not be qualified to be elected ur cho.sen as a merroer or MaJlls-o·Shoora (Parllamont) unless he Is sagacious. nghteous and non-pronlgete. honest and ameen, th;;ro baing no declaratiOn to the contrar)o by a court of la•V' Can a \'rotator of oncome tax law escapd the operat1on of th1s prov1s10n even \..Oen no act. on IS ta~en by FSR aga1n5t ~om and 11 1s Incontrovertible that he did not nte income lll.x return and ~M>a.ltn statement requireo undar the taw? Dr Tahlr·ui·Oadrl In his firs\ address on arrival from Canada told us that heaven .-.auld not filii If elections Y.olrtl not held In lime as Article 254 or tho ConstJtution condones any delay. In his second address m K.aracht on the first day of 2013, he threat,ened the government of turnin9 Islamabad Into .w.w brecorder .convartH:Ies-a-letters/18 7 :artldesJ 11 39619 :tax-dehnquentsJ?dato "20 13·0 1·04 • 215 115/13 Tax de~nquenls I Businns Re<:order \he v.orld'a large&t Tahrir Squate on 14 January 2013. Is it perrriss1ble under the supreme law of land • OJIA to enforc::e of Article 62(f) through such means? The law givea every citizen of Pakistan co~liance • H...... 2,"'-81 t..U -----~---- ... \he right to fJie a peltllon .,_fore EJection Corni'Bsalon tor any violation by any elected mell"ber. Wny au '·"'"-'MI - - o..u did Dr Tahlr·ul-03drl and his sopporters n&V$r boUier 10 file petitions against tax <:heal.$ <Ung In ------,TU 1.-:10 0.01 hOuses? How can \hey plcll provisions of constitution In lsolallon? It Is a v.el setlled principle of OJIX >.MUI II.H consUtuttoo.al lntetptetatlon that the Constitullon must be teed as en organic v.hole end ell its U1t.M 11.10 N.. ol 10,122.. 0.11 provisions rrwl be ha~olously reconciled fnal.eed of picking oul 1lnconslstenclea belv.een different - ..-. ,-----'""' u.,-,.. - ,. -· o . ~ provisions - Ful Court declslon of Supreme Court In Muhai111'118.d Na....ez Sherif v. President of ...... 11.Q:UO o..u Paldstan PLD 1993 SC 473. Up4~t.clll5:00 am Psi '------.,.stead of adopting the con.sbtutJonal and legal procedures, option for milions' march lowards - ·-- Top Tnd•d ] Ad•••: ... Islamabad 11nd paralysing the· elucled govummenl, 15 nothing but creating 'fas'ad•RI-Ardh'ln the name -~-~~~·~~ of •reforms· and •revolution". Symbol Pflco '""G• v...... IIYCO IU~ O.AI U ,l ti.MO U'ldoubtedly, the government during its tenure ha.s failed to prolii'Ct the life and property of people. It ./SCI. IIJ..:W -4..12 II .U•.S.OO has created e m&ss of everythlng: especlaUy lis cr\rrr.al acr of making the lives of the poor miserable Is slrr.:,ly unpardonable but sadly, the self-acdelmed reformers Intend to create further disorder In the MLCF ,...... 0.11 t ,tiO, IOO name of mora~ty and reforms. They shoukl adopt legal course and conlut elections. r they reaay FC(;L • . ~5 0.01 •.•o uoo ~a&tarian want to make .Pakistan an r>tale • they also want to add the t61'fn Islamic v.llh It - the best U!l tl.'2 0 .71 l,.l1S,50CI way Is to moblbe the people on a concrete agenda. They haY$ no blueprint for change and e~werment of lhe poor, mere rhelcxio of revolution and, nothing el6e. By thrilling on money provided by the poor, they are Indulging In eletreme hypocrisy, falling to realise how the incongruity between their 110rds and deeds ex;>ose their true deslgns. In Ouran, the efl1)hasls is on taqwa (piety) in al spheres of life. Leaden have lObe role model for al others • they should be eble lo set standards for the rest of the cllizens. Pakistan, presenUy a ballooning state, requires a bokl and clean leadership. Or Tahlr-ui-Qadrl ftrSI or au should dedare his coo and his team's as v.el as his Institution's account (both local and global), public. As ....e have been highlight&(! lime end &!Jain in these colufl'lr'ls. the starting point of transparency and accountability In Pakistan should be malting public, tax and asset dec::taratlons of all holders of public ortlce, Judges, genl)rels ond high-ranking clllll bureeuc:¥&1.$. This ~WUid peve the way .for a clean system of governance that entels accountabilky end transparency. ~ is not out of plac. lo mention that two ir'rl>Ortant nomneu of Sarack Obama In his rnt term. Tom Daschle and Nancy l OtJr rulers, on the contrary, taka pride In re'IWrding knO\Iofl corru,pt and offenders by gllllng them Important public offlce.s. This Is Y The agenda or change. even from a pure moralistic point of view, mu5t start from one's self and o...,n house. Tho$8 ....t1o are 8C(;U&lng othera of tax avoidance are required to first prove that they have discharged their 0\lofl liab~ities dliiganUy. Thera cannot be selectlve accountablllty and escape from law by using the attractJve slogan of "change" or ·reform· nor In theft garb can anyone be allov.ed to riSe abOVe law by claiming himself 10 be a cos.todian (self-acctaimed) or moraUiy and rlliglon. If In the name of 'people's parliament', any individual can override the oonstitullon and parliament, the loglc::el noxl step v.ould be ast11bhhlng "people's (;()urt• ov.rrullng the existing jiJdlclary• ., the name of 'rule of law' nobody 1hould be allowed to oreate 'a rule egaln$1 le'w'. Populism. manoeuvred through mooay and ldaologlcal fantasias of wperlorlty of any ldnd,leads to fascism. Cona.Utullonel democracy may not be perfect, system of g011ernance may be dellelent, but the only option ror meenlngful change Is through vote, the real eJ w.w.brecorper.comtllrticles-a-letters/187·artidas/1 1 3961 9:tax-de~nquanW?date=20 13-01-04 315 ANNEX-B 5-C. 2nd FIOOf, Khayaban-e-lttenad, Phase VII , Defence Housing Authority, Keraeh•. ~TRANSPARENCY Tel: (92-21 )-3S390408, 35390409. Fax: 35390410 E-ma~ : li [email protected] .:::; 'INTERNATIONAL-PAKISTAN Website: www.lransparency.org pk 26th February 2013 Honorable Justice lftikhar Muhammad Chaudhry, Chief Justice of Pakistan, Supreme Court of Pakistan, Constitutional Avenue, Islamabad. Attn: Human Rights Cell HRC No. 38448-S/'2013 Sub: SUO MOTO action on Forthcoming financial NRO jn fonn of Two Blanket Tax Amnesty Schemes. Voluntarily Tax Registration and Voluntary Declaration of Assets. May it please your Lordship, My Lord, the Transparency International Pakistan, the reply of FBR dated I st January 2013, vide letter No. 4(7) STJ/2010/1071 in the HRC No. 38448-S/2013, on TIP letter dated 14th November 2012, by the senior member Mr. Asrar Raouf submitted to Human Right Cell, Supreme Court of Pakistan is incomplete, and as only one point volunteer tax registration Enforcement Initiative' only has been clarified, which clarification is also not correct. Tile FBR in fact is allowing 3.8 million tax evaders, passage of whitening their black money, by paying nominal amount, as a person can get a national tax number by depositing Rs 40,000, and he shall be entitled to incorporate income/assets/expenses with a declared value up toRs 5 million in his books of accounts. The laxity being allowed are; I. He shall not be liable to any further tax, charge, levy, penalty or prosecution under the Income Tax Ordinance, 200 I in respect of his income for any of the tax years prior to the tax year in which he has paid the registration tax. 2. The declaration shall remain confidential - no action even could be taken by Federal Investigation Agency (FlA) or, 3. National Accountability Bureau (NAB) or, 4. Securities and Exchange Commission of Pakistan (SECP). It has been reported that in the scheme, 3.1 million people will be targeted who have been identified by using database of National Database and Registration Authority (NADRA). The second Tax Amnesty Scheme which aJiow existing tax payer to declare and whiten any quantum of their un taxed wealth, by paying only I% income tax on their wealth has not been clarified to Supreme Court by FBR. When FBR by implementing FBR Laws can recover at least Rs 3 trillion from these 'super rich' alone why is FBR projecting figure of just Rs I00- I 20 billion from amnesty schemes? Why should national exchequer suffer by geUing peanuts from these super rich tax che.ats due to failures of FBR? What is the rationale or absolving them from criminal proceedings under special laws related to corrupt practices and money laundering? A NON-PARTISAN, NON-PROFIT COALITION AGAINST CORRUPTION Donations exempted !rom tax U/S 2 (36) (c) oil. Tax Ordinance 2001 ~TRANSPARENCY Ctmtinuution Sheer No...... ~ INTERNATIONAL-PAKISTAN Also FBR has failed to justify their claim to collect Rs. I 00 Billion of this proposed tax amnesty scheme, as TlP had mentioned "The 2008 Tax Amnesty Scheme was misused, and Federal Tax Ombudsman had also warned FBR vide lener dated 20 March 2010 to ensure proper monitoring of tax payers who filed declaration, and also monitor for mandatory 3 years tax filling requirement, failing which amnesty claimed is to be rejected. lt is reported that FBR did not identify a single case of violation out of more than 10,000 claimants. Sincerity of FBR is doubtful. Vide Transparency International letter dated 7 January 2013, TIP has also indicated that FBR planned to spend 5% of the estimated value of Rs. II 0 billion, that is Rs. 5.5 billion, on publicity and launching of campaign. Such waste of expenditure is exhibition of fail Tax Amnesty Scheme announced by the Government in 2008 is a criminal negligence ifit occurs. This is to highlight that in 2008 the Tax Amnesty Scheme the total revenue received by the Government even by extending the Scheme to 6 month period, was only 1.54 billion. FBR has also not replied on the unconstitutional act proposed in the Tax Amnesty Scheme about the proposed penalty of cancellation of CNlC for tax defaulters. Possession of CNIC is a fundamental right of every citizen, and secondly how this penalty can be implemented on foreign nationals residing in Pakistan. FBR has also not taken any action on HRC No. 36434-S/2012, since December 2012 top recover about Rs 300-400 Billion annual shortfall in GST/WHT from the Cellular Phone pre paid cards providers . . Transparency International Pakistan is striving for across the board application of Rule of Law, which is the only way to stop corruption. An indulgence of the Honorable Court in the matter is prayed for as these Schemes amounts to give incentives to honest tax payers to become tax defaulters in future. YouJ~/ Syed A i~ilani , Adviser -~ 2 ------ANN EX-C 5-C, 2nd Floor, Khayaban-e-lttehad, Phase VII, Defence Housing Authority, Karachi. TRANSPARENCY Tel: (92-21)-35390408, 35390409, Fax: 35390410 E-mail: [email protected] INTERNATIONAL-PAKISTAN Website: www.transparency.org .pk 26'11 Decem ber, 2015 His Excellency Muh nm mad Nawaz Sharif, l-Io n 'ble Prime Mi nister of Pakistan, Prime Minister Secretariat, Islumabnd. SU B: ANOTHER FINANCIAL NRO (TAX AMNESTY) FOR TAX DODGERS TO LEGALIZE UNTAXED MONEY REQUEST TO INTERVENE IN THE NAME OF RULE OF LAW: Respected Sir, Transpar\.!ncy Intern ati onal Pa kistan re fers to th(! news report publi shed in NATION of I 9'h December 2015, disclosing that Government to offer tax amnesty to non filers Annex-A. The news report has revealed : "Unregistered traders are to be offered an official tax amnesty if they declare their assets, business leaders said Friday. Under the scheme, full tax liability on up to Rs50 million earnings will be waived in favour of a one per cent payment. They will also be exempted from auditing their businesses for three years. Prime Minister Nawaz Sharif is expected to announce the concession in Islamabad later this month as part of the government's plan to bring more businesses into the tax net". Earlier in the year 2012, such effort was also made by previous government preferring short-cuts to ex te nd a major relief to the elite ahead of the General Elections; the PPP-Ied coalition Government introduced a controversial Tax Amnesty Bill in the National Assembly to whiten black money and assets at home and abroad within three months against a nominal one-time charge. But the Tax Amnesty Scheme was not approved by the Parliament when it was strongly opposed by Civil Society and specially by TIP and the matter of the Tax Amnesty Scheme was t::1ken up wit h the Chi ef Justi ce Supreme Court of Pakistan Even the intention of making any scheme to legalize illegal assets is an act of Corruption and Co rrupt practice under Secti on 9 of National Accountability Bureau Ordinance 1999: (l'i) if he misuses his awhority so as to gain any benefit or favour for himself or any other person, or renders or attempts to render or willfully fails to exercise his authority to prevent the grant, or rendition of any undue benefit or favour which he could have JXel'ented by e). ercising his urahority}; The view point has also been con finned by the Hon'ble Supreme Court of Pakistan: 20 14 SCMR 585- Supreme Cou rt of Pakistan S. 9(a)(vi)--- corruption and corrupt practices--- Common intention/abetment by public serwu11---Scope---Secrion 9(a)(vi) of National Account ah ilit_v Ordin ance, I 999 covered crimes committed with common intention as well as abe/ment---Public servants who a he/l ed th e commission of corruption by allowing acts which it was th eir duty to stop should be proceeded against under S.9(a)(vi) of Nalional Accountability Ord~nance , 199/1 A NON-PARTISAN, NON-PROFIT COALITION AGAINST CORRUPTION Donations exempted from tax UIS 2 (36) (c) of I. Tax Ordinance 2001 TRANSPARENCY Cominuation Sheet No ...... INTERNATIONAL-PAKISTAN 2012 SCMR 1757- Supreme Court of Pakistan ·· ... 111 th~ ligh1 ufthe above we are disposing of the grounds on Lhe basis of which leave 10 appeal was granted, in !he following manner. (i) We find the appellant guilty of misconduct for his role in a transaction which may be considered private, but was executed with a mala fide intention ro dejl·aud a person and rherefore was unbecoming ofa JudiciaL Officer. (i i) It is prima facie clear that the appellant had bew misusing his judicial office 10 help and assist his brothers and nephews in acquiring or disposing of properties profits and gains of which were shared by him and this tantamounts to abuse o,(judicial po11•ers. " ... that it was prima facie clear that Judicial Officer had been misusing his Judicial Office to help and assist his brothers and nephews in acquiring or disposing of properties, profits and gains of which were shared by him, which tnntammmted to ah use o,( judicial powers---Appeal was dismissed in cii'CU171Slances. MA. Rahman v, Federation o(Pakistan and others 1988 SCMR 691: lnspector C,·nerct! (P1 isons) N- WF.P. v. Sved Jaffqr Shah, Ex-Assistant Supe1 illlt!ndenr Jail and others 2006 SCMR 815: Auditor-General Qf Pakistan and another v. lkramullah Khan 2002 SCMR 584 and Auditor-General o(Pakistan and others v. Muhammad Ali and others 2006 SCMR 60 ref Another very crucial aspects of proposed amnesty scheme is that the author/creator of the scheme is treating the other organs of the state like NAB, FIA, Anti Corruption, Money laundering (State Bank of Pakistan) as impotent like the functionaries of FBR and the most important and vigilant organs of the state have been turned toothless tigers under the garb of proposed amnesty scheme. Transparency International Pakistan strongly requests the Hon'ble Prime Minster of Pakistan not 10 procc~s this rropo~cd Tax Amne sty Scheme which will amount to f-in ancial N.R.O with Ta-.; Evaders and big tax dodgers. At the same time it will also discourage the honest, loyal and fully compliant taxpayer citizen of this poor nation. Similarly National Exchequer shall also suffer huge loss in tax collection when untaxed money upto Rs.SO Million is offered to be cleared by paying pennies i.e., I% while as per law said untaxed, ill-gotten money may be taxed at 35% with I 00% pena lt y. Transparency International Pakistan is striving for across the board application of Rule of Law, which is the only way to stop corruption. ~'~~ ~u Copies forwarded for the information with request to take action under their mandate to: I. Registrar, Supreme Cou11 of Pakistan, Islamabad .., Ci1Jinna11, N,\8, Islamabad. 3. Federal Tax Ombudsman, Islamabad. 1 TRIBUNE wr"TH nu. Inttmationa.l~twUork~lmcs An1nesty package: Tax schen1e to legalise hidden assets on the cards By Shahbaz Rana Published: December 17, 2015 ISLAMABAD: The government has finalised an asset regularisation scheme for non-filers of income tax returns, offering them to declare their hidden assets of up to RsSO million by paying a nominall% of the declared amount in taxes. Finance Minister lshaq Dar announced the amnesty package for the non-filers after holding a meeting with the representatives of the traders but refused to divulge its details. Dar said that the package will be formally revealed after seeking approval of Prime Minister Nawaz Sharif. However, the government will also have to seek the input of the International Monetary Fund that is generally opposed to any such scheme, terming it a source of discouragement for the taxpayers. This puts the government in a quandary- without an option to whiten their hidden assets, traders are not willing to come in the tax net, but if the government labels the new scheme as an amnesty, the IMF will create problems. The details of amnesty on assets hidden by filers of income tax returns could not be finalised. Sources said that the non-filers have been offered to legalize up to RsSO million of working capital by paying 1% of the value of the asset. For the future, the government has offered them to pay a very nominal rate of about 0.2% of the total sales, as their full and final income tax liability. This arrangement is aimed at addressing the traders concerns about high tax rates once they come in the tax net. The package for non-filers will end the fear of the Federal Board of Revenue in the minds of those people who are not willing to come in the tax net on grounds that taxmen will harass them, said Dar while speaking to the media after holding a meeting with traders. In July this year, the government had imposed 0.6% withholding tax on all types of banking transactions carried out by the non-filers of the income tax returns. However, after countrywide protests by the traders, the government lowered the rate to 0.3% and announced it would negotiate with them. The non-filers, particularly traders, wanted an amnesty on assets that they have acc umulated so far and a reduced tax rate in future on the grounds that their profit margins were very thin. The traders have a share of 18% in the national economy, but pay little in taxes . In Pakistan less than one million people file their income tax returns, although about 45 million pay taxes, mainly withholding taxes, starting from mobile phone bills to almost every ki nd of consumer good. 2 .. Dar said an execution plan including the legal instrument that will be u·sed to'give co~er to the non-filer package has not yet been finalised. He said that the options included passing legislation through parliament and promulgation of presidential ordinance. The in iti al deta il s of the amnesty package that are available so far, suggest that the amnes ty scheme prepared by Pakistan Peoples Party government during its last year was far better than the PML-N package. The PPP government had offered the tax evaders to legalise up to RsS million by paying a fee of up to Rs70,000. Hidden assets and income valuing at over RsS million were offered to be declared by paying an additionall% to 1.5% tax. Published in The Express Tribune, December lfh, 2015. ANN-EX-D 1/212016 SRO 1065(1)/2013: FBR clar1fies tax incentive package I Business Recorder !DOCTYPE html PUBLIC "-/M/3C//DTD XHTML 1.0 Transitional/lEN" "http://www.w3.org/TR/xhtmi1/DTD/xhtml1-transitional.dtd"> SRO 1065(1)/2013: FBR clarifies tax incentive package December 11, 2015 SOHAIL SARFRAZ 0 Comments The Federal Board of Revenue (FBR) has clarified that the source of investment shall not be probed under SR01 065(1)/2013 by the tax authorities, for existing and new BliSlNISS undertakings, if investment is made on or after January 1, 2014, and commercial production commences on or before June 30, 2016. In this regard, the FBR Thursday RECORDER issued an Income tax clarification for clause 86 of Part-11 of Second Schedule of the Income Tax Ordinance Inserted through SR0.1 065(1)/2013 dated December 20.2013. According to the FBR, clause (86)(a)(iii) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001 is applicable for both existing as well as new concerns subject to the conditions laid down in sub-clause (c) ibid, it added. Background of the issue revealed that the FBR had notified a multi-pronged tax incentive package in December 2013 for new investors under which the source of Investment would not be asked if it is made on or after the 1st day of January, 2014, and commercial production commences on or before the 30th day of June, 2016 through an SRO 1065(1)12013. The provisions of section 111 shall not apply to investment made by an individual in a Greenfield industrial undertaking directly or as an original allottee in the purchase of shares of a company establishing an industrial undertaking or capital contribution in an association of persons establishing an industrial undertaking; investment made by an association of persons in an industrial undertaking; and investment made by a company in an industrial undertaking; if the said investment is made on or after the 1st day of January, 2014, and commercial production commences on or before the 30th day of June, 2016 . Under the notification, the source of investment shall not be probed by the tax authorities in respect of persons, who set up an industrial undertaking/expansion project on or after January 1, 2014. The concessions shall also apply to investment made in construction Industry in corporate sector, low cost housing construction in the corporate sector, livestock development projects in the corporate sector, new captive power plants and mining and quarrying in Thar Coal Balochistan and Khyber Pakhtunkhawa . The concessions shall not apply to investment made in arms and ammunitions, explosives, fertilisers, sugar, cigarettes, aerated beverages, cement, textile spinning units, flour mills, vegetable ghee and cooking oil manufacturing. The term Greenfield industrial undertaking shall include expansion projects for the purpose of this clause. The immunity shall not be available to proceeds of crime relating to offences under Control of Narcotics Substances Act, 1997; Anti Terrorism Act, 1997 and Anti Money Laundering Act, 2010, notificatio.n added. Responding to a query of a spinning and weaving mill of Karachi , the FBR clarified that clause (86)(a)(iii) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001 is applicable for both existing as well as new concerns subject to the conditions laid down in sub-clause (c) ibid, it added. Copvrlqht Business Recorder. 2015 Share ill like GJ Twe~t j http://www .brecordef .comttaxatiorJ1/12549451?tm pi= com ponent&pri nt= 1&I ayout= defaul t&page= 1/1 • I lN THE SUPREME COURT OF PAKJSTAN, ISLAMABAD (Or.igin.al Jurisdiction) Regd. A.D. II RC o.3844S-S/20 12 Applicaticm by Syed Adil Gillani 5-C, 2nd Floor, Khayaban-e-Ittcbad, Phase VU, DHA, Karachi To Syed Adil Gillani 5-C, 2nd Floor, Khayaban-e-Ittehad, Phase VII, DHA, Karachi Take notice that the above noted HR case was placed before the Hon'ble Chief Justice of Pakistan and his lordship has been pleased to pass the following order: - "Application be file by sencliug copy of report to tire applica111 (TIP). " .., You are, therefore, infonncd accordingly. Islamabad: January 17, 2013 Director Human Rights Cell Phone# 051-92205811319 Fax# 051-9219516 Encl: Copy of commentslrepon. I GOVERNMENT OF PAKISTAN REVENUE DIVISION FEDERA BOARD OF REVENUE ••••• C.No.4(7)ST J/201 0 )t (. 71·) \' Islamabad the 151 January, 2013 The Director, Human Rights Cell, Supreme Court of Pakistan, Islamabad Subject:- SUO MOTO ACTION ON FORTHCOMING FINANCIAL NRO IN FORM OF TWO BLANKET TAX AMNESTY SCHEMES, VOLUTARILY TAX REGISTRATION AND VOLUNTARY DECLARATION OF ASSETS. Kindly refer to your l~tter HRC No.38448-S/2012 .dated 18th December, 2012 on the above subject 2. As desired by Honourable Chief justice of Pakistan the report is submitted as under:- (i) A significant segment of Pakistan's economy is undocumented . The national exchequer is not receiving its due share from a large number of persons deriving taxable income but not filing their return of income. A large number of businesses and individuals who are regularly filing their Income Tax returns are \ avoiding their legal obligations by either under-declaring or not correctly declaring their assets and/or income. FBR has managed to gain access to the data about multiple bank accounts, travels, assets and other details of non-filers. In view of the large number of unregistered and registered non-filers, FBR is offering an opportunity to these non-filers for bringing them within the tax system in an honourable and easy manner for regularization of income tax affairs of such persons. (ii) Based on the available information, the proposed initiative is twofold. -··' (a) Tax Registration Enforcement Initiative, 2012 has been devised to attempt through a simple scheme to register and bring into tax net non-filers of tax returns. (b) As a complement to the above initiative the Investment Tax e Scheme, 2012 will attempt through a simple scheme to provide a mechanism and cover to regular filers in addition to )' non filers of income tax returns to declare undeclared income assets/expenditure up to the value of Rs.5 Million by payment , ~ of token tax. Additional assets/income can be regularized by , payment of Investment tax as per proposed slab. (iii) Both the initiatives are measures to enhance the number of taxpayers and to bring the undocumented income/assets into the documented sector which will provide buoyancy to the national economy and deepen and broaden the tax base. The proposed initiatives are expected to generate estimated revenues of Rs .100 billion and to increase the number of taxpayers to around 4 million. The tax evaders not availing the schemes shall face major penalties like placement of their names on the Exit Control List (ECL), cancellation of passports and Computerized National Identity Cards (CNIC) and seizure of bank accounts. \ 3. The proposed tax registration & enforcement initiative and investment tax schemes as discussed in para-1 above were approved by the Federal Cabinet. 4. Resultantly the proposals as discussed above, were presented in the parliament in the form of Money Bill on 17-12-2012, so that the collective wisdom of the Parliament may deliberate the proposal and if considered appropriate may accord approval. 5. The said bill is instantly being taken by Senate Standing Committee on ... Finance, Revenue and Planning as required under Article 73 of the Constitution of Islamic Republic of Pakistan. The meeting of the committee is scheduled to be held on 4111 January, 2012. (Asrar Raouf) Senior Member (IR-Policy) January 1, 2009 FBR nets Rs 1.54b from tax investment scheme Federal Board of Revenue (FBR) has co ll ected Rs 1.54 billion from the tax investment scheme announced in July this year, says a press statement issued Thursday. According to details, some 10,828 cases seeking to benefit from the scheme were received by FBR until December 31, 2008, the la st day of the scheme, and were settled after netting Rs 1,542 million as tax equaling two per cent of the fair market value of their assets. The scheme was run by the 16 regional tax offices and large tax payers units of the FBR and received a record 4,114 cases from the RTO Lahore followed by 1,861 cases received in RTO Karachi. The break-up of the collection is al so attached for further details. 01.01.2009 COLLECTION FROM ITS 2008 • S# LTU/RTO Collection from ITS 2008 Number of Amount cases - .. (Rs. In M1lhons) 1 L TU, Karachi 1 25 2 RTO, Karachi 1,861 288 3 LTU, Islamabad ...... 1 0.4 4 RTO, Lahore . , .... 784 5 LTU, Lahore 3 4 6 RTO, Rawalpindi 979 86 7 RTO, Islamabad 9 6 8 RTO, Multan 101 15 9 RTO, Faisalabad 925 93 10 RTO, Peshawar 246 43 11 RTO, Sialkot 522 47 12 RTO, Hyderabad 868 44 13 RTO, Quetta 48 12 14 RTO, Gujranwala 572 65 15 RTO, Sukkur 495 23 16 RTO, Abbotabad 83 7 Total 10,828 1,542 Hamid Raza Wattoo Secretary PR Ph: 051-920 8407 Fax: 051-920 8407 Muhammad Kashif 3237311-2 42201-0483902-5 1,000,000 1,000,000 20 ,000 2746 Hussain 2747 Zahid Saeed 1245341-2 42101-2023195-1 700,000 700,000 14,000 2748 Abid Saeed 1245340-4 42101-2023195 800,000 800,000 16,000 2749 Nasir Ahmed Khan 0285447-3 42101-7602213-3 20,000,000 20 ,000,000 400,000 Saeed Ahmed Khan 0567345-3 42101-3330636-1 5,000,000 5,000,000 100,000 2750 Karam Shah Baz 0257017-1 42101-3249904-1 5,000,000 5,000,000 100,000 2751 Khan Raja Muhammad 0858561-0 42301-0934923-1 10,000,000 10,000,000 200,000 2752 Saleemuddin 2753 lkramuddin Khan 1041637-4 42201-0552273-5 5,000,000 5,000,000 100,000 2754 rukhsana lkram 1221535 42201-0476940-4 5,000,000 5,000,000 100,000 2755 Farena Shakeel 0211591 42301-9229194-6 10,000,000 10,000,000 200 ,000 2756 Shakeel Ahmed 1192981-2 42301-6287834-5 20 ,000,000 20 ,000,000 400,000 2757 Sana Salim 3112885-8 42301-5264428-2 10,000,000 10,000,000 200,000 2758 Tasleem Ashfaq 42301-3935938-3 1,000,000 1,000,000 20 ,000 2759 Tanveer Ashfaq 42301-6149019-9 800,000 800,000 16,000 2760 Naima Rehana 42301-3711607-4 100,000 100,000 2,000 2761 Amir Habib 280617 42201-0716670-7 2,500,000 2,500,000 58 ,033 2762 Naimul Haq 0655411-3 42201-0716673-3 7,000,000 7,000,000 140,000 Rubina Shaheen 3235929-0 42301-0729314-0 - - W/o Tanveer Ahmed 2763 2764 Junaid Habib 2441884 42201-03935209 3,000,000 3,000,000 60 ,000 2765 Sultana Najam 276818 42201-06088490 2,500,000 2,500,000 50 ,000 Muhammad Amin 0904516-3 42201-2228262-3 50,000,000 50,000,000 1,000,000 2766 Motiwala M/s Pacific Traders 1137122 10,000,000 10,000,000 200,000 2767 Haider Ali N. H. 0297027-9 10,000,000 10,000,000 200,000 2768 Hussain Malik Muhammad 1408798-7 42000-5462756-3 1,000,000 1,000,000 20 ,000 2769 Hanif Ramzani Malik Muhammad 2671751-4 42000-54 73206-3 2,000,000 2,000,000 40,000 2770 Sharif Ramzani 2771 Muhammad Aslam 2738100-5 42101-88179891 1,000,000 1,000,000 20 ,000 Sher Asfand Yar 1337317-0 42301-7437453-1 - - 2772 Khan 2773 Muhammad Zubalr 0939878-3 42301-6278459-3 r~ l M1r Shakeelrur 0297076 42-301.....5392319-7 164.000 000 164. boo ooo ~ =-' 3.280,000 2774 Rehman 2775 Abdul Basit 0614954 42000-0495215-3 10,000,000 10,000,000 200,000 2776 Khalid Mehmood 1266574-6 42201-8924492-1 10,000,000 10,000,000 200,000 2777 Ashiq Ali 0880993-3 420000-4846967 2,000,000 2,000,000 40,000 Muhammad Abdullah 0614953 42201-8420379-3 10,000,000 10,000,000 200,000 2778 2779 Abdul Malik 0670613 42201-9627541-7 30 ,000,000 30 ,000,000 600,000 Muhammad Anis ur 1967395-7 42201-2769413-3 10,000,000 10,000,000 200,000 2780 Rehman 2781 Javed Rasheed 1333144-2 422201-057804 7-3 1,250,000 1,250,000 25 ,000 2782 Shakil Ahmed 0271038 35201-9685449-3 4,000,000 4,000,000 80 ,000 2783 Ahmed Jamal 2393678-9 35201-8554028-7 3,220,500 3,220,500 64,410 2784 Mrs. Amina Shakil 0284983 35201-71227273-2 64,777,000 64 ,777,000 1,295 ,540 2785 Jamal Abdul Nasir 0516072 42301-1092387-1 5,310,000 5,310,000 106,200 2786 Mrs. Lubna Nasir 0691530 42301-0980851-0 2,450,000 2,450,000 49,000 2787 Hassan Jamal 1221578-3 42301-1092323-5 7,550,000 7,550,000 151 ,000 2788 Abdul Ghafoor 0813637-8 42301-7836967-5 4,085 ,000 4,085,000 81 ,700 2081 Furqan Usman 3098148 42201-8438536-3 1,000,000 1,000,000 20 ,000 2082 Khurshid Enver 0521397 42201-3787838-3 500,000 500,000 10,000 Muhammad Aiyub 0269730-7 42101-0586357-3 5,000,000 5,000,000 100,000 2083 Adam 2084 Haroon Jamal 0261696 42201-0575973-2 12,000,000 12,000,000 240,000 Haji Abdul Qadir 0269429-8 42201-0759727-5 50 ,000,000 50 ,000,000 1,000,000 2085 Mithani Fatima Khalid 2764013-2 61101-5143053-8 850,000 850,000 17,000 2086 Dhedhi Abdul Wahid Usman 3069939 42201-9395961-3 2,000,000 2,000,000 40,000 2087 2088 Muhammad Alee 2306726-8 42301-5668328-3 50 ,000,000 50 ,000,000 1,000,000 2089 Hussain Karim 0261644 42000-0707655-5 4,285,000 4,285,000 85 ,700 2090 Rehman Bashir 1151741-7 42201-0699193-7 2,622,000 2,622,000 52 ,440 2091 Kamran Bashir 0820823 42201-7563527-9 4,203 ,500 4,203,500 84 ,070 2092 Muhammad Khan 0269201 42201-0740124-1 3,000,000 3,000,000 60 ,000 209,3~ Hussain HashwaJli 1258423 42301-0196599-1 50 000,000 50 ,000,000 1,000,000 2094 Muhammad Atif 322876-5 42201-90065971 500,000 500,000 10,000 2095 Arif Hashwcl'ni 0655725 42301-8446997-5 '1 00,000,000 100,000,000 2,000,000 2096 Anwar Sabir 3210310 42201-4 786683-3 600,000 600,000 12 ,000 209 7 Altaf Hashwanl 1043120 42301-9829588-9 50 ,000,000 50 ,000,000 1,000,000 Habib Sharaf Ali 0276866 42201 -0334261-3 1,000,000 1,000,000 20 ,000 2098 Gain 2099 Bahadur Khan 1563703 42201-8921990-7 10,000,000 10,000,000 200,000 2100 Haroon Younus 0855286 42201-4608046-7 108,333 108,333 2,167 Mrs. Ambreen W/o 3231646-1 42301-0848356-2 - - 2101 Shabbir 2102 Muhammad Anwar 141838-9 42201 -8335165-7 1,500,000 1,500,000 30 ,000 Mrs. Ambreen W/o 3231646-1 42301-0848356-2 - - 2103 Shabbir Razi Muhammad 2271255-7 42201-0667084-9 19,000,000 19,000,000 380 ,000 2104 Yousuf Shabbir Abdul 1512947-7 42301 -1535619-5 - - Ghaffar S/o Abdul 2105 Ghaffar Shabbir Abdul 1512947-7 42301 -1535619-5 500,000 500,000 10,000 Ghaffar S/o Abdul 2106 Ghaffar Mrs. Gulshan Ara 3174574-1 42201-21 06830-8 1,000,000 1,000,000 20,000 2107 Begum Shabbir Abdul 1512947-7 42301-1535619-5 - - Ghaffar S/o Abdul 2108 Ghaffar 2109 Atiqur Rehman 0277228 42201-0640128-1 5,500,000 5,500,000 110,000 2110 Mrs. Zakira lrfan 1193014-4 42101-5376428-4 700,000 700,000 14,000 Khurram Khalil S/o 0819374-6 42201-0211679-5 100,000,000 100,000,000 2, 000 ,000 2111 Khalil Ahmed 2112 Daulat Banoo 0520482 42201-0435564-2 20,000,000 20 ,000,000 400,000 2113 Naseem Akhtar 2728558-8 42301-7898605-2 5,000,000 5,000,000 100,000 Syed Hassan Abbas 26384 70-1 42000-0531158-3 1,000,000 1,000,000 20,000 2114 2115 Mst. Kulsoom Bai 1192923 42301-8026382-4 2,040,000 2,040,000 40, 800 M/s. Makki 1217116-6 No. 0393/2001 800,000 800,000 16,000 2116 Engineering Works 2117 Muhammad Umair 3190689-3 42201 -7244867-7 2,000 ,000 2,000,000 40,000 2118 Aftab Hussain 1694191 42201-8589477-9 10,000,000 10,000,000 200 ,000 2119 Waheed Zafar 2151344-9 42000-9631593-5 5,000 ,000 5,000,000 100,000 <4 r.. r\,..,. r. 2120 Muhammad Aqeel 2991375-6 42701 - m?~ 1 q7- ~ ~=;nn nnn C.f'\(\ (\(\ f' Syed Mazhar 2053680 42101-2191743-1 1,500,000 1,500,000 30 ,000 4237 Abdullah Syed Zair Abbas 06362460 42201-0598308-5 5,000,000 5,000,000 100,000 4238 Abidi 4239 Farhad Somani 2677776 42201-058 7229-3 7,000,000 7,000,000 140,000 4240 Javed Iqbal 1437280-7 42301-0184541-1 17,000,000 17,000,000 340,000 M/s. Ghani Builders 2711167-9 NA - - & Developers (Pvt) 4241 LTD 4242 Mrs. Naila Asad 1599354 42301-0945541-8 1,000,000 1,000,000 20,000 4243 Muhammad Yousuf 0259348 42201-0560133-7 7,000,000 7,000,000 140,000 Shahid Parvaiz Iraqi 2182364-2 42101-2003179-1 2,000,000 2,000,000 40,000 4244 4245 Dilshad Anis 0282217-2 42301 -1442960-2 500,000 500,000 10,000 Muhammad Usman 2353844-9 42201-5030246-1 2,500,000 2,500,000 50,000 4246 4247 Shakeel Ahmed 1374660 42301-6763072-9 1,000,000 1,000,000 20 ,000 Muhammad 1334334-3 42201-0812170-3 2,500,000 2,500,000 50 ,000 4248 Suleman Sheikh 4249 Arshad Younus 1192197 42201-0551230-3 17,100,000 17,100,000 342 ,000 4250 Sakina Shakir 1273777 42301-1984560-6 5,000,000 5,000,000 100,000 4251 v' Saima Ali 0845507-4 35201-1333152-0 50 ,000,000 50 ,000,000 1,000,000 - ~- Khawaja Ab'dul 0293591 42301 -7764135-5 262,933,134 262 ,933,134 5,258,663 4252 Ghan1Ma11d \}"" Khawa a Mustafa 0921804 42301 -5973954-7 287,644,885 287 ,644,885 5,752 ,897 4253 MaJid 4254 v Nimar'" 2796809-0 42000-1246900-5 50,000,000 50 ,000,000 1,000,040 Khajawa Anver Majid 0656017 42000 ~ 303600().:. 3 372,113,169 3"Z2.113169 r 7, 442 ,263 4255 v 4256 v Mrs. Nazli Majid 0292543 42301 -4252576-6 60,302 ,000 60,302,000 1,206,040 4257 Haji Iqbal 0284762 42201-31088969 5,000,000 5,000,000 100,000 Haji Ghulam 0279993 42201 -47762489 5,000,000 5,000,000 100,000 4258 Muhammad Haji Muhammad 0279994 42201-04773619 5,000,000 5,000,000 100,000 4259 Yakoob Khawaja Ali Kamal 2243802-5 42301-8273075-3 12 ,056,721 12,056,721 241 '134 4260 v Majid Muhammad Asif Teli 0269525 42201-6897959-3 10,000,000 10,000,000 200,000 4261 4262 Murtaza Teli 1938043 42301-4802240-5 5,000,000 5,000,000 100,000 4263 Muhammad Ali Teli 3037913 42301-4372037-1 5,000,000 5,000,000 100,000 4264 Mansoor Teli 42301-2496481-3 5,000,000 5,000,000 100,000 4265 Mustafa Teli 2404152 42301-1761183-7 5,000,000 5,000,000 100,000 4266 Abdul Razak Teli 0297930 42301-1661133-7 5,000,000 5,000,000 100,000 Ashfaque Ahmed 2371149 42201-0844710-9 10,000,000 10,000,000 200,000 4267 Teli 4268 Afshan Tariq 2748264-2 42201-6308901-6 2,000,000 2,000,000 40,000 4269 Tariq Mumtaz 0300280 42201-1676382-3 1 ,500,000 1,500,000 30 ,000 Shaikh Muhammad 1461578-9 42201 -3023251-1 9,000,000 9,000,000 180,000 4270 Sa boor Muhammad Zahid 1955401 42101-16561863 10,000,000 10,000,000 200,000 4271 Hussain Muhammad Kaleem 2644576-0 42201-3505160-3 4,500,000 4,500 ,000 90 ,000 4272 Hafiz Muhammad 2683821-4 42201-7856975-1 2,500,000 2,500 ,000 50,000 4273 Yousuf 4274 Zulfifar Momin 1024041-1 42101-3018939-7 29,000,000 29 ,000,000 580,000 762 Mian Umair Khalid 2724178-5 42201-4011313-5 5,000,000 5,000,000 100,000 763 Yawar Hafiz 1189237-4 42301-8368460-9 2,500,000 2,500,000 50 ,000 Mian Khalid 0028502 42201-1008388-7 22,500,000 22,500,000 450,000 764 Mehmood 765 Mrs. Kulsum Bano 0904356-0 42201-8876022-8 4,500,000 4,500,000 90 ,000 766 Ebrahim Qassim 0258661-4 42201-2992551-5 20,000,000 20,000,000 400,000 767 Muhammad Umair 3174575-0 42301-1111804-7 10,000,000 10,000,000 200,000 768 Shaheen Perveen 42101-1487298-6 - - 769 Saeed Jawaid 2441882 42301-5026908-3 3,000,000 3,000,000 60,000 770 AI Noor Akbar 0618506-1 42301-0914572-1 10,000,000 10,000,000 200,000 Mrs. Mumtaz 0292834-1 42000-0454982-0 - - 771 Noordin Mrs. Rehmat Banu 0292933-3 42301-0833701-4 - - 772 Akbar Abdul Mahmood 0270810-8 42301-0887956-1 30,000,000 30,000,000 600,000 773 Noor Muhammad Akbar Noor 0270811-6 42301-0914573-3 30,~0 , 000 30,000,000 600,000 774 Muhammad Noordin Noor 0270809-4 42301-0918080-3 30,000,000 30 ,000,000 600,000 775 Muhammad Muhammad Rafiq 0896424-6 42201-7809983-3 10,000,000 10,000,000 200,000 Patel S/o Haji Kassam Abbas Patel 776 Muhammad Arif 0286496-7 42201-4065161-9 10,000,000 10,000,000 200,000 777 Patel Muhammad Saleem 0286034 42301-2277675-3 5,000,000 5,000,000 100,000 778 Mrs. Farah Naz 1335542-6 42501-71 04030-2 - - 779 Nadeem M/s. Pakistan Hotels 3093299-8 Reg# 0001714 1,347,319 1,347,319 26,946 780 Association 781 Mrs. Hina Khan 3207179-5 42101-0652931-4 2,500,000 2,500,000 50 ,000 Muhammad Sadiq 0752624-5 42301-6539903-3 9,372 ,565 9,372,565 187,451 782 Qureshi 783 Rizwan Raees 2097920-7 42101-1771245-9 2,500,000 2,500,000 50 ,000 784 Mrs. Uzma Rizwan 3207188-4 42101-2768477-2 2,500,000 2,500,000 50,000 Muhammad 2097922-3 42101 .:6376948-7 2,500,000 2,500,000 50,000 785 Moazzam Khan M/s. Rizwan 2097929-7 AOP - - 786 Moazzam Mehmood Ali 2549418-0 42201-4953782-7 3,000,000 3,000,000 60,000 787 Hemani 788 Ameer Ali Rupani 1504075-5 42101-1733224-9 510,000 510,000 10,200 789 Mrs. Naila Alladin 1402798-4 42301-6955290 2,500,000 2,500,000 50 ,000 Muhammad Haroon 0671497-8 42201-5249799-5 15,000,000 15,000,000 300,000 790 Chawla 791 Sultan Ahmed 0301105 42201-8892765-9 2,000,000 2,000,000 40,000 Khurram Naveed 3207815-3 42101-1415346-1 3,500,000 3,500,000 70,000 792 Ahmed f 793 Dr. Asim Htc~ssain 0537332- 6 421 01-099202-3W 1.0D.,.000,0QO 100,000:000 2,0'00 ,000 Noor us Saba 1333346-1 42201-5259516-4 - - 794 Mansoor 795 Muhammad Fayaz 2270244-0 42101-7189377-9 3,700,000 3,700,000 74,000 Muhammad 3089009-8 42201-9052070-5 3,000,000 3,000,000 60,000 796 Mushtaque Mirza Muhammad 3190733-4 42101-1819391-3 500,000 500,000 10,000 797 Siddiq