FBR refuses to share Politically-Exposed Persons’ data

ISLAMABAD: The Federal Board of Revenue (FBR) has refused to share information regarding tax payments made by Politically-Exposed Persons (PEPs) including some high-level public officials (Grade-17-22) on account of Capital Value Tax (CVT), Super Tax and section 7E (tax on deemed income) under the umbrella of section 216 of the Income Tax Ordinance, 2001.

A tax lawyer, Waheed Shahzad Butt, had lodged an appeal before the Pakistan Information Commission (PIC) against the FBR, alleging that the agency was trying to hide crucial information.

The PIC has summoned the Secretary FBR for not providing information regarding tax payments made by PEPs to explain FBR’s position for not providing information regarding tax payments made by high-level public officials of BPS-17 to BS-22, their spouses/ children or beneficial owners in terms of CVT under Section 8(2) (b) of the Finance Act, 2022 and Section 4C (Super tax) & Section 7E (tax on deemed income) of the Income Tax Ordinance, 2001

Tax payments made by PEPs: PIC summons secretary FBR for not providing info

Advocate Waheed Butt had requested access to this information under the Right of Access to Information Act, 2017 (RTI). The FBR’s long silence has once again proved that the RTI law has been considered as toothless, and tax authorities are using it to deny even basic tax related information, Waheed Butt said.

The tax lawyer had requested a complete breakdown of the total payments made by the PEP, if any, to the national exchequer on account of CVT, Supertax and Deemed income tax. These included Members of National/ Provincial assemblies, Senate, President of Pakistan, Federal Ministers, Judges of High Courts and Supreme Court, all Federal/ Provincial Ombudspersons, Chief Election Commissioner and ECP members and Chairman NAB, etc.

FBR refusal letter stated: “I am directed to say that IR Operation Wing does not maintain any data of politically exposed persons including high level public officials and public servants in BPS-17 and above, their spouses, their children or benamindars.

“Further section 216 prohibits disclosure of taxpayer’s information to any individual or authority except those mentioned explicitly in sub section 3 of section 21 of the Ordinance. As the applicant is not covered its exception; therefore, the information enjoying confidentially privileges, cannot be divulged in pursuance of bar of section 216 of the Income Tax Ordinance, 2001,” the FBR letter added.

Copyright Business Recorder, 2023