Suddle asks Malik Riaz, Arsalan, others to explain tax evasion

ISLAMABAD: In a major development Federal Tax Ombudsman has sought replies from the Federal Board of Revenue and six other persons nominated in the one-man commission’s interim report regarding tax evasions and has ordered all the seven to reply before 03-01-2013.
In a notice issued by Registrar FTO to Federal Board of Revenue, Malik Riaz Hussain, Dr Arsalan Iftikhar, Salman Ahmad Khan, Ahmad Khalil, Zaid Rehman and the Principal Officer, Bahria Town Pvt. Ltd, the FTO has mentioned that it has taken the suo moto cognizance of the tax evasions mentioned in the one-man commission’s interim report submitted in the Supreme Court on December 4, 2012.
The preliminary report of the one-man commission has implicated Dr Arsalan Iftikhar and Malik Riaz in massive tax evasion of Rs51.3 million and Rs119.4 billion respectively recommending the imposition of penalty for concealment of assets in wealth statements filed with income tax returns and ‘detection of undeclared bank accounts in the name of Ahmed Khalil showing deposits of Rs306 million. Without any declared income, Ahmed Khalil was found owner of assets worth Rs677 million. Income tax implications on these assets come to Rs169 million.’
The notice says: “The One-Man Inquiry Commission Interim Report of 4th December 2012 has been made public by order of the Hon’ble Supreme Court of Pakistan. In view of the fact that aspects of the report falling within the original jurisdiction of the office of the Federal Tax Ombudsman are of exceptional public importance, the Hon’ble Federal Tax Ombudsman has decided to take suo moto cognizance, under section 9 of the FTO Ordinance 2000, for investigating the extreme mal-administration emerging from the report, and resultant colossal loss of revenue. Before proceeding further in the matter, all concerned are being required to file their response on tax-related matters of the report, even though the preliminary findings reflected in the report are only of a tentative nature. Your response is required to reach the FTO Secretariat by 03-01-2013. You will also be afforded an opportunity of personal hearing”.