FBR freezes bank accounts of top banker for concealing foreign assets

KARACHI: The Federal Board of Revenue (FBR) has frozen the bank accounts of a top banker for tax recovery of over Rs1 billion on the charges of concealing foreign assets, official sources said on Thursday.

The Directorate of Automatic Exchange of Information (AEOI) Karachi has attached the bank accounts of Farooq Bengali, a former CEO of a foreign bank operating in Pakistan, for the recovery of Rs1.12 billion as outstanding tax demand, they said.

The tax zone attached three accounts of the taxpayer in the Standard Chartered Bank, Faysal Bank and Bank Al Habib and recovered a sizeable amount.

The tax authorities were unable to reveal the recovered amount but said if the amount was not sufficient against the demand then other means would be taken for the recovery of the remaining amount.

The tax authorities attached the bank accounts of the taxpayer for the recovery of tax amount pertaining to tax year 2018.

The sources said the action was taken against the taxpayer for not declaring foreign assets and after an appeal of the taxpayer was rejected at an appellant forum.

Further, the zone took permission from the chief commissioner Inland Revenue, Large Taxpayers Office (LTO) Karachi.

To recover the entire amount, the tax authorities have been empowered to freeze immovable properties, as well, the sources said. Besides, the authorities can also take help from the country having jurisdiction over the foreign assets.

This is one of the biggest recoveries of the AEOI Zone, which was established by the FBR to detect undeclared foreign assets of Pakistanis.

The sources said the AEOI Zone was also engaged in examining the hidden foreign assets in the latest Pandora Papers.