FBR Refuses to Share Tax Data of Politically Exposed Persons

The Federal Board of Revenue (FBR) has refused to share information regarding tax payments made by Politically-Exposed Persons (PEPs) with the Pakistan Information Commission (PIC).

The information to be shared with the PIC included data of some high-level public officials serving in BPS-17 to BS-22 on account of Capital Value Tax (CVT), Super Tax & Section 7E (Tax on deemed income).

The FBR has declined to provide the said information under the cover of Section 216 of the Income Tax Ordinance, 2001.

Sources told ProPakistani that this development came after tax lawyer Waheed Shahzad Butt lodged an appeal before the Pakistan Information Commission (PIC) against the FBR, alleging that the agency was trying to hide crucial information, while PIC has summoned the Secretary FBR for not providing information regarding tax payments made by PEPs to explain FBR’s position for not providing information regarding tax payments made by high-level public officials of BPS-17 to BS-22, their spouses/ children or beneficial owners in terms of CVT under Section 8(2)(b) of the Finance Act, 2022 and Section 4C (Super tax) & Section 7E (tax on deemed income) of the Income Tax Ordinance, 2001

Advocate Waheed Butt had requested access to this information under the Right of Access to Information Act, 2017 (RTI). The FBR’s long silence has once again proved that the RTI law has been considered toothless, and tax authorities are using it to deny even basic tax-related information, Waheed Butt said.

He said he had requested a complete breakdown of the total payments made by the PEP, if any, to the national exchequer on account of CVT, Supertax, and Deemed income tax.

These included Members of National/ Provincial assemblies, the Senate, the President of Pakistan, Federal Ministers, Judges of High Courts and the Supreme Court, all Federal/ Provincial Ombudspersons, the Chief Election Commissioner and ECP members, and the Chairman NAB, etc.

FBR refusal letter states, “I am directed to say that IR Operation wing does not maintain any data of politically exposed persons including high-level public officials and public servants in BPS-17 and above, their spouses, their children or benamindars”.

“Further section 216 prohibits disclosure of taxpayer’s information to any individual or authority except those mentioned explicitly in sub-section 3 of section 21 of the Ordinance. As the applicant is not covered by its exception, therefore, the information enjoying confidentially privileges, cannot be divulged in pursuance of the bar of section 216 of the Income Tax Ordinance, 2001”, the FBR letter states.