MPs' tax data not leaked: information was obtained from ECP, National Assembly body told

The Federal Board of Revenue has informed the National Assembly Standing Committee on Finance that the tax-related data of the parliamentarians has not been leaked by the Board as the information was reportedly obtained from the Election Commission of Pakistan (ECP).
FBR Member Administration Husnain Ahmad informed the committee here on Monday that all particulars contained in a return of income or the annexed documents on accounts furnished by a taxpayer to FBR are confidential and no public servant can disclose any such particular under sub-section (1) of section 216 of the Income Tax Ordinance, 2001. Any person who discloses any particulars in contravention of section 216 is guilty of an offence under section 198 punishable on conviction with fine or/and imprisonment for a term not exceeding six months.
FBR Member Admin said that the FBR has requisitioned reports from all field offices regarding unauthorised disclosure of information relating to tax returns filed by the parliamentarian and all offices have categorically denied having furnished any such information to press. It is therefore vehemently denied that the FBR did not disclose any classified information of tax return of parliamentarians to the press/media.
However, to investigate the unauthorized disclosure of information to the press a fact finding enquiry committee has been constituted by the FBR and further action shall be taken on receipt of the report of the enquiry committee, Husnain Ahmad added.
FBR Member Admin requested two weeks time from the committee for completion of investigation. Irrespective parliamentarians, data has been reported, the FBR is treating it as a case of theft. We are not treating it as a normal inquiry but it would be considered as a forensic inquiry.
When the committee members insisted that how information regarding tax payments or non-filing of returns was leaked, FBR Member Admin said that the tax status of parliamentarians could be easily checked by using Computerised National Identity Card Number (CNIC). If anyone obtains CNICs of all the parliamentarians from the Election Commission of Pakistan, the FBR website can tell whether the person is NTN holder or not. With the help of CNIC, anyone can check the tax status of the person concerned. In case a CNIC holder has obtained NTN from the FBR, it could be checked and verified from the FBR website. You can enter the CNIC into the system and it would automatically tell about the tax status of individuals including parliamentarians. If the NTN holder is not confirmed from the FBR website, it is understood that the concerned person has not been registered with the tax department or he is non-filer of returns. Obviously, a person not having NTN is a non-filer of income tax return.
An interesting situation emerged during the meeting when FBR Chief Inland Revenue Operations Mrs Fareena Mazhar said that the income-related information has been declared by the parliamentarians with the Election Commission of Pakistan. However, committee members insisted that no such income or tax-related information has been declared with the Election Commission. Mrs Fareena Mazhar responded that the annual statements filed by the parliamentarians with the Election Commission have income-related information. "Only one portion of non-filers relates to FBR and we are investigating it," FBR official said, adding that the Election Commission has also possessed details of income tax given by parliamentarians.
All the committee members were unanimous that their tax has been deducted at source from salary income and thus they all are regular taxpayers. Responding to a query, FBR Member Admin said that the FBR has contacted the Secretariat of Parliament for deputation of tax officials for assisting the parliamentarians in obtaining NTNs or discharging their tax liabilities.
When the committee members criticised the FBR's electronic return filing system, FBR Member Admin explained that the FBR is bringing comprehensive changes in the e-filing system very soon. The 'graphical user interface' would be modified to facilitate the return filers so that they can easily file their returns.
During the committee proceedings, the FBR was also unable to respond to a query raised by committee why parliamentarians were not sent notices if they had not filed their tax returns. FBR Member Admin offered that if the committee directs the FBR, the tax department can extend date for filing of income tax returns for the parliamentarians. So far, the FBR has not taken any decision to extend the date for filing of returns. Responding to this, the committee said that if the FBR wanted to extend date it would be extended for everyone.
The committee recommended that one-month extension in return filing should be allowed without imposition of penalty under Income Tax Ordinance 2001. Moreover, income tax return should be simplified and there should be option to file return in English or Urdu language, the committee members said.
During the meeting, members of the parliamentary body repeatedly stressed the tax authorities to issue statement that all parliamentarians were honourable members and were not tax dodgers. "We have already said that FBR does not own report of tax dodging by parliamentarians," FBR official said in response to insistence by members committee to declare parliamentarians as innocent.
The committee also asked FBR authorities to submit a comparative study on the incomes and tax being paid by generals, judges and federal secretaries in next meeting. The members committee also insisted that date for filing tax returns should be extended for parliamentarians by exempting them from penalty.
One of the committee members inquired about the tax payments by Malik Riaz, but no response from the FBR was received. The committee chairman said the FBR had leaked the information of parliamentarians to the press to get the amnesty scheme approved from the parliament. The committee was informed that 2.2 million people had National Tax Numbers (NTN) but only 0.9 million had filed their tax returns. Parliamentary penal also criticised FBR for failure over cracking down against 3.8 million tax evaders identified by Nadra.