Federal Board of Revenue (FBR) has directed its field formation to expedite investigation against the persons having investments in offshore companies in Panama; it was learnt here. According to sources, the board after the Panamagate initiated an audit exercise against the taxpayers, having investments in offshore companies in November 2016. For the purpose, FBR has issued notices across the country, asking the individuals to produce complete details about the investments in offshore companies in Panama.
Moreover, sources said that 400 notices were issued to businessmen, politicians, etc only in Karachi and the field formation was directed to kick off audit exercise under section 177 of Income Tax Ordinance, 2001. However, the field formation during last 12 months appeared in an idle mode insofar as this investigation is concerned, sources said. The field formation had neither pursued the audit against the notices nor did it close the said exercise because of inadequate information regarding investments in offshore companies in Panama.
Furthermore, sources said that the board had now again issued formal instructions to its field formation to expedite investigation against the persons having investments in offshore companies in Panama. Sources disclosed that the instructions were aimed at releasing the court pressure, if the FBR was asked about the progress on the Panama investigation.
On the other hand, the field formation has shown its incapacity to pursue the Panama investigation, despite formal instructions, sources said.
They said that the field formation was unable to move even one step forward as they had no comprehensive information to prove untaxed money was invested in Panama and added that tax department also ran into the time-barred snag in majority of cases. Keeping the said problems in view, the field formation is now sending a letter to the FBR, requesting to acquire financial details of individuals from Panama in order to pursue the investigation further else they have no other option but to quash the same.