According to sources, the FBR has decided to flex its muscle and initiate legal proceedings against those who have established offshore companies.
However, it admitted the current laws were insufficient to take direct action against the companies named in the Panama Papers. Despite that it has initiated work to gather data against the owners of the offshore companies.
It said that it was necessary for Pakistan to become a member of the Organization for Economic Co-operation and Development (OECD) after which the FBR will have complete access to data of the offshore companies.
It said that according to the Finance Bill action cannot be taken against those who set up offshore companies prior to 2010-11. Finance Minister Ishaq Dar has hinted that government is considering to enact laws to stop sending money abroad illegal and ban establishment of offshore companies.