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Monday 23 January 2012

FBR, ECP at war over �real� assets of parliamentarians

ISLAMABAD: A tug of war has started between FBR and the Election Commission with the taxmen wanting to investigate parliamentarian’s assets while the ECP does not want to share the declared assets data.

In a bid to net the powerful and wealthy politicians, the Federal Board of Revenue (FBR) has sought data pertaining to the declared assets of elected parliamentarians from the Election Commission of Pakistan (ECP). FBR sleuths will be tasked to scrutinize whether the ‘real’ assets are in consonance with their officially declared assets, it is learnt.

The ECP however is unwilling to share this data on the plea that the law does not authorize it to share the relevant data. Despite repeated formal requests made by the FBR, the ECP is not ready to share assets declarations in official capacity and giving mandate any other entity to scrutinize this data.

“No such law exists in the country that binds the ECP to give mandate to any other institution including the FBR to scrutinize the assets declarations of Parliamentarians,” Secretary ECP, Ishtiaq Khan told The News on Saturday.

He said that the ECP was working on different reforms to bring more transparency. A sub committee, he said, has been formed that was assigned to come up with its recommendations to the ECP for introducing more reforms. “If the need arises, the ECP can refer to the Parliament for considering approving of legislation where the law of land is silent as of now, “ he added.

The FBR is working to broaden its narrowed tax base by identifying non- filers as well as under-filers (those undervaluing and partially hiding assets) to ensure true materialization of the tax potential. In this regard, the FBR has officially requested the ECP to share the data of asset declarations of parliamentarians so that FBR would be able to carry out a serious audit.

Top functionaries of the FBR confided to The News that they had been trying for months now to get this data from ECP, which had stonewalled all efforts and requests. “We have been seeking data of asset declarations of parliamentarians from the ECP from last several months but in vain. We know that the data of asset declarations of parliamentarians is available with different stakeholders but we want it in official capacity that will enable us probing them by putting mismatch in their filed returns and asset declarations,” a top official of FBR said. The FBR, the sources said, has given its legal viewpoint and expert opinion on key issues relating to sharing of assets and liabilities related information of the Members of the National Assembly and Senate to the ECP.

The FBR has proposed that all parliamentarians should be bound to declare that no asset has been kept as ‘Benami’.

The ECP and the FBR are considering comparing the income tax laws with the Section 42A of the Representation of People Act, 1976 and Section 25A of the Senate (Election) Act, 1975 under which it will become mandatory for the Members of the Parliament and provincial Assemblies to submit to the Election Commission the yearly statements of assets and liabilities of their own, their spouse and dependents.

The FBR and ECP are contemplating eight points including whether the ECP should place on the website the notifications containing details of political parties accounts as well as statements of assets and liabilities of Members of the Parliament and Provincial Assemblies. The eight points include: Whether information about assets of close relatives and dependents is equally important in our context as most of the assets are kept in their names and whether an affidavit should also be made mandatory to the effect that no asset has been kept as ‘Benami’.

Whether ECP is duplicating activity by seeking assets declaration Form and whether it should coordinate with Federal Board of Revenue and seek a certificate from FBR regarding assets declaration and tax payment certificate on behalf of the individual and political party and what is the effect of the existing provisions of law contained in Section 42A of the Representation of the People Act, 1976 and 25A of the Senate (Election) Act, 1975? Whether the enforcement of law (Sections 49-50 of the Representation of the People Act, 1976) relating to election expenditure is necessary?

Whether there should be an undertaking from the political parties and not necessarily the individual candidate?

Whether there should be Coordination Committee involving the Auditor General of Pakistan, FBR, ECP to prepare a mechanism for declared campaign expenses and their further assessment.


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