The Federal Board of Revenue (FBR) informed the Supreme Court’s Constitutional Bench that Rs880 million has been recovered from Pakistanis holding foreign accounts and offshore properties.
According to media reports, the six-judge bench, headed by Justice Aminuddin and comprising Justices Jamal Khan Mandokhail, Muhammad Ali Mazhar, Hassan Azhar Rizvi, Mussarat Hilali, and Naeem Akhtar Afghan, was hearing cases related to the maintenance of undisclosed foreign accounts and loan write-offs.
During the proceedings, Advocate Hafiz Ehsaan Ahmad Khokhar, representing the FBR, submitted a progress report regarding the actions taken to trace foreign currency accounts and offshore assets.
The report followed a suo motu notice on the issue of offshore assets taken by former Chief Justice Saqib Nisar in February 2018. In March 2018, a 12-member committee was formed to review the situation and submit its findings.
Justice Mandokhail inquired about the extent to which the FBR had traced the offshore accounts and properties. Justice Amin noted that after identifying the individuals, the focus must shift to recovering the funds.
The FBR counsel informed the bench that the FBR had implemented key committee recommendations and had recovered Rs880 million so far, with further recoveries expected from individuals holding assets abroad.
The FBR had been directed by the Constitutional Bench on November 15, 2024, to submit a report confirming compliance with previous Supreme Court orders. Hafiz Ehsaan highlighted the amendments made to the Income Tax Ordinance 2001, particularly those concerning foreign asset declarations, wealth statements, and remittances exceeding Rs5 million annually. The Finance Act 2021 lowered the threshold for remittance declarations from Rs10 million to Rs5 million.
He also elaborated on amendments made to Section 111 of the Ordinance, which removed the time limitation for taxing unexplained foreign income or assets, allowing tax authorities to act on concealed foreign income or assets regardless of their age.
Ehsaan also highlighted the implementation of the Finance Assets and Repatriation and Declaration Act 2018, aimed at facilitating the declaration and repatriation of offshore assets.
The court adjourned the case related to the write-off loans.
