Riaz-Arsalan-Khalil case: TI Pakistan seeks recovery of Rs 119.6203 billion on account of tax evasion

Transparency International Pakistan (TI-Pakistan) has demanded recovery of Rs 119.6203 billion from Malik Riaz, Dr Arsalan Iftikhar and Ahmed Khalil on account of tax evasion determined by Federal Tax Ombudsman (FTO). In a letter sent to, Federal Board of Revenue (FBR) Chairman Ali Arshad Hakeem, TI-Pakistan Adviser Syed Adil Gilani referred to the letter sent on September 4, 2010 with following request:
"Transparency International Pakistan request the FBR Chairman to provide information to TI-Pakistan on the total value of assets of Malik Riaz as assessed by FBR in accordance with Income Tax Ordinance 2001, including the income tax and Capital Value Tax paid in 2009 on assets worth over Rs 225 billion (US three billion dollars). In case these assets have not been declared to the FBR in 2009-2010 returns of Malik Riaz, Transparency International Pakistan request FBR to take action according to the law. TI Pakistan is working for FBR to become a "Zero Tolerance against Corruption" organisation."
Gilani brought to Chairman, FBR's notice that even after sending seven reminders, Transparency International Pakistan has not been informed so far about the tax collected on the publicly declared assets of Rs 225 billion by Malik Riaz. According to the FTO inquiry commission report submitted in the Supreme Court of Pakistan on December 6, in the matter of Malik Riaz Hussain, Dr Arsalan Iftikhar and others, tax evasion of Rs 119.6203 billion has been determined.
He requested FBR Chairman to take immediate measures in accordance with the rules and regulations to recover Rs 119.6203 billion from Malik Riaz, Dr Arsalan Iftikhar and Ahmed Khalil on account of tax evasion determined by FTO. He also requested that action might be taken against the officers who did not act under the FBR rules, and caused loss to the exchequer by not recovering the amount even after TI-Pakistan had at right time informed FBR in September 2010 about this major tax evasion.
TI-Pakistan is striving to have transparency in procedures and Rule of Law in Pakistan, which is the only way to eliminate corruption and have good governance in country, Gilani said. Copies of the letter have been forwarded for action under rules and regulations to: Chairman, Public Accounts Committee, Islamabad, Federal Tax Ombudsman, Islamabad, Dr Abdul Hafeez Shaikh, Federal Minister of Finance, Islamabad, Auditor General Pakistan, Islamabad, and Registrar, Supreme Court of Pakistan, Islamabad.