ISLAMABAD: The tax authorities on Friday found that the money trail provided by wife of Justice Qazi Faez Isa is full of discrepancies, a move that apparently suggests legal trouble for her husband might aggravate in near future.
The development came weeks ahead of deadline given to Federal Board of Revenue (FBR) by the Supreme Court to provide conclusive findings on Mrs Sarina Isa and her two children's London properties' case.
"As per our record, Mrs Isa had total taxed/white amount of some Rs10 million. The said amount [Rs10 million] was already consumed during these three offshores were declared up to June 30, 2013 while London properties were concealed and not disclosed in her wealth," a senior official familiar with the latest development told this correspondent.
"Examining record provided by her [Mrs Isa] FBR team served her another show-cause notice recently. "We sought explanation over Rs105 million [through which flats were purchased in London], which may considered as an unexplained income of the accused [Mrs Isa].
She has not brought anything on record to substantiate the legitimate/taxed sources of London investment so far and their transmission to other party's accounts," added the official, seeking anonymity.
Sources familiar with the latest reply's content submitted by Mrs Sarina Isa with FBR team revealed that wife of judge Isa claimed that FBR team was biased in its conduct. "She [Sarina] does not know where FBR authorities have taken figure of Rs10 million from, as FBR team neither provided details nor how they explained how they determined total price of my London properties which according to them was Rs105," said a senior official familiar with Mrs Isa's reply content. Mrs Isa told FBR in her reply that she, according to FBR team, could not have earned and saved enough money to justify the purchase of three properties in London, one for £236,000 in the year 2004 and two in the year 2013 for £245,000 and £270,000 respectively. "She said she started to work in the Karachi American School 38 years ago, before her marriage, and worked there for decades. She did not know from which date tax authorities have taken her earnings from. She further stated that she with a friend bought an office in Clifton Centre, Karachi, which she rented out and paid income tax on the rental income. She then sold the previously mentioned office in Clifton Centre at a profit and she later bought a house in Clifton, which was also rented out. According to official she further informed authorities that she later sold the aforesaid house at a profit," added the official.
Another FBR official told this correspondent that "as Mrs Isa failed to respond to FBR's questions pertaining to actual percentage of her investment in respect of three London flats -- now she [Sarina] has suddenly changed her stance that she paid entire amount against these flats -- thus her investment works out to Rs105 million -- her wealth statement of 2018 year reflects that she has 50 percent shares in London properties -- implying that rest of investments were made by her children."
Sources further revealed that Mrs Isa in her reply continued to raise legal objections to FBR's findings pertaining to Section 122 (2) of the Ordinance, which stipulates that after five years, tax matters attain finality. Mrs Sarina informed FBR team that her first property was purchased in the year 2004, that is over 16 years ago and the two others in the year 2013, that is over 7 years ago, said another official familiar with the latest development.
Mrs Isa further explained that section 116-A of the Ordinance was inserted through Finance Act, 2018 when, for the first time, "foreign income and assets statement" was required to be filed, added the official. Complied with this new legal requirement, she filed her returns and statements with regard to foreign income and assets for Tax Year 2018 and again for Tax Year 2019, paid requisite tax and the same were accepted by FBR, he revealed.
On disregarding her agricultural income by relying of section 111 and treating it as "unexplained income," she quoted the fact that the proviso to section 111 of the Ordinance (on which you rely), which accepts income derived from agriculture on which, "agricultural income tax [is] paid under the relevant provincial law" was added through the Finance Act, 2013.
From her agricultural earnings and taxable income she would buy foreign currency. Price of UK pounds and US dollars was far less when they were bought, she further claimed that FBR also illegally collected information about her foreign currency accounts and in FBR team's show cause notice of 30th July, 2020 state that, "foreign exchange remitted by you is £737,503 and $17,966" which is about the cost of the said properties.”
She further argued that once FBR had recorded this finding, the matter should have stood concluded. In any case there was no "change of stance" by her and she stood by what she had earlier stated, which was that she had paid the entire amount for the purchase of the two properties bought in 2013, her reply was quoted by a senior official who did not want to be named.
She further said her confidential records to PTI's Mirza Shahzad Akbar and MQM's Farogh Naseem to help serve their politics, who used Abdul Waheed Dogar with the object of removing her husband from his constitutional office of a judge of the Supreme Court at the behest of Imran Khan government's stated agenda. She further stated that her accounts with Standard Chartered Bank, which FBR illegally accessed must have also revealed to tax authorities that these accounts have been now dormant for quite a few years.
FBR authorities have not responded to 'The News’ queries after it sought their version on the latest development happened in Mrs Sarina’s case. Till filing of this this story, neither FBR Chairman Javed Ghani nor Member Operations FBR Dr Ashfaq Ahmed responded questions sent by this correspondent.
