What would the
Judicial Commission (JC) on Panama Leaks will reveal? While analyzing it,
I recalled Economic Reform Act.
On
28th of July 1992, Parliament published in official gazette, Protection
of Economic Reform Act. The act explained economic reforms as;
Economic policies and programs, laws and regulations announced,
promulgated or implemented by the government on and after the seventh day of
November 1990, relating to privatization of public sector enterprises and nationalized
banks, promotion of savings and investments, Introduction of fiscal incentives
for industrialization and deregulation of investment, banking, Finance,
exchange and payment systems, holding and transfer of currencies
The Act overrides other laws, namely Foreign exchange Regulation Act 1947,
The Customs Act 1969, The Income Tax Ordinance 1979, and any other law that was
being in force at that time.
The Act, gave freedom to all citizens of Pakistan resident in Pakistan or
outside Pakistan and all other persons to bring, hold, sell, transfer and take
out foreign exchange within or out of Pakistan in any form and shall not be
required to make a foreign currency declaration at any stage or shall anyone be
questioned in that regard. People could hold FX account without disclosing its
financing source. Accounts were exempted from income, wealth taxes and Zakat
deduction at source and off course; banks were asked to keep the secrecy in
respect to transaction in the foreign currency accounts.
Now,
if money was sent abroad for offshore purchase(s) during that time, nothing can
be found with tax authorities or customs. No trail of money could be found as
banks were asked to open and operate account without knowing funding source. The
only track available would be funds used from those accounts. Though although privatization program was announced but most banks were
under government control, so I have serious doubts if they kept funding records
or informed SBP about it.
Under
such conditions, a judicial commission or an inquiry commission, will not be able
to find anything illegal, and if that would be the case it will clear PM family from P-Leaks charges. So, he is playing smart, as after forming an offshore company,
one can even purchase GoP Eurobond legally.
1 comment:
I think its more than just the law . As model sons of Pakistan PM invading taxes from overseas investments in other countries does not have a healthy impression on the nature of conducting the business .Shams
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