Money sent, property purchased abroad not illegal: FBR

The wish for bringing back billions of dollars stashed abroad and getting due taxes in the aftermath of Panama Leaks has lost its steam as the Federal Bureau of Revenue (FBR) has fetched a meagre tax of over Rs5billion from 325 biggest cases for owning income up to $1million abroad.

FBR Chairman Shabbar Zaidi also admitted before the parliamentarians that the money remitted out from Pakistan and creation of any assets abroad could not be termed "illegal" as it was protected under foreign currency accounts ordinance 2001.

"It is the official view of myself and FBR that the legal money sending abroad and purchase of assets is allowed and cannot be termed illegal," Zaidi testified before the National Assembly's Standing Committee on Finance and Revenue that met under the chairmanship of Asad Umar here at the Parliament House.

He told the committee that the UAE was not sharing information about the Iqama holders of Pakistan while Malaysia was also not sharing information. He said the OECD had extended support to Pakistan's stance but the UAE was unwilling to share the requested information.

The NA committee showed its complete dissatisfaction over the probe undertaken by the FBR. The NA panel chairman said that there was a need to further explain whether the legal money sending abroad was legal or illegal because the State Bank of Pakistan (SBP) did not agree to what the FBR chairman argued here.

The sharing of information from top officials of the FBR shocked parliamentarians irrespective of political divide as NA panel Chairman Asad Umar described that it showed "elite culture" prevailing in the country. When the NA panel chairman inquired whether any name of politicians existed in biggest 325 cases for owning up to $1 million outof received data from OECD mechanism, the FBR chairman said that no name included in this list.