TIP asks FBR to recover Rs 119b from Malik Riaz, Dr Arsalan and Ahmed Khalil

The Transparency International Pakistan (TIP) has asked the Federal Bureau of Revenue (FBR) to recover Rs 119.4682 billion from real estate tycoon Malik Riaz, chief justice’s son Dr Arsalan Iftikhar, and businessman Ahmed Khalil on account of tax evasion as determined by the Federal Tax Ombudsman (FTO).
In a letter to FBR Chairman Ali Arshad Hakeem, TIP Adviser Adil Gilani referred to his previous letter written on September 4, 2010, about a news item published on September 1, 2010. He requested the FBR chairman to provide information to the TIP on the total value of Malik Riaz’s assets as assessed by the FBR in accordance with the Income Tax Ordinance 2001, including the income tax and capital value tax paid in 2009 on his assets worth over Rs 225 billion ($3 billion).
“Even after seven reminders sent to the FBR chairman, the TIP was not informed about the tax collected on the publicly declared assets of Rs 225 billion by Mr Malik Riaz himself,” Gilani wrote. “According to the FTO enquiry commission report submitted in the Supreme Court of Pakistan on December 6, 2012, in the matter of Malik Riaz Hussain, Dr Arsalan Iftikhar and others, tax evasion of Rs 119.4682 billion has been determined,” the TIP adviser said. Mentioning media reports, Gilani said the FTO report alleged that tax evasion of Rs 51.3 million had been committed by Dr Arsalan Iftikhar.
“Tax evasion of Rs 119.4 billion was committed by Malik Riaz Hussain. Undeclared bank accounts in the name of Ahmed Khalil showing deposits of Rs 306m had also been detected. Without any declared income, Ahmed Khalil has been found the owner of assets worth Rs 677 million. Income tax implications on these assets come to Rs 169 million,” Gilani said.
“The FBR chairman is requested to take immediate measures in accordance with the rules and regulations to recover Rs 119.4682 billion from Mr Malik Riaz, Dr Arsalan Iftikhar and Mr Ahmed Khalil on account of tax evasion determined by the FTO,” the TIP adviser added.
“It is also requested that action may be taken against the officers who did not act under the FBR rules, and caused loss to the exchequer by not recovering the amount even after the TIP had in right time informed the FBR in September 2010 about this major tax evasion,” Gilani concluded.