SUBMITTED TO: SIR SAGHIR AHMED KHAN

SUBMITTED BY: ARBIA HUMAYUN

ASMER DURAID KHAN
KANTESH GEHANI
SUBJECT: TAXATION

DATE OF SUBMISSION: 7th-November-2016

Table of Contents
ACKNOWLEDGMENT.................................................................................................................2
INTRODUCTION...........................................................................................................................3
Panama Leaks..................................................................................................................................3
About the Panama Papers............................................................................................................3
A group Effort..........................................................................................................................4
About Sddeutsche Zeitung.............................................................................................................7
List of Pakistanis Listed on Panama Paper leaks.............................................................................7
Pakistani Politicians in Panama Leaks:...........................................................................................7
Pakistani Businessmen in Panama Leaks:.......................................................................................8
Pakistani Judges in Panama Leaks:.................................................................................................9
Pakistani Media personnel in Panama Leaks:.................................................................................9
NAB could investigate Pakistanis listed in Panama Papers............................................................9
Effects already being felt.................................................................................................................9
UPDATE 5/9/2016 1: PM ET: (NEW LIST OF PAKISTANIS NAMED IN PANAMA PAPERS
LEAK)...........................................................................................................................................10
NEWS RELATED TO PANAMA LEAKS IN PAKISTAN..........................................................11

ACKNOWLEDGMENT

We would like to thank Sir Saghir Ahmed Khan, Taxation instructor, for his
guidance in the preparation of this report. His support made this study
learning & lasting experience. Without his help and dedication to the project,
this research project would not have been possible.
We would also like to thank all those people who helped in this project my
sharing their valuable knowledge and experience on the topic. Their help and
support is greatly appreciated.
As Sir Saghir Ahmed Khan helped us, we would like to dedicate this report to
him. Without him we would not be able to complete this project.
Thank you very much.

INTRODUCTION

Panama Leaks
The Panama Papers are 11.5 million leaked documents that detail financial and attorneyclient
information for more than 214,488 offshore entities. The leaked documents were created by
Panamanian law firm and corporate service provider Mossack Fonseca some date back to the
1970s.
The leaked documents illustrate how wealthy individuals and public officials are able to keep
personal financial information private. While offshore business entities are legal, reporters found
that some of the Mossack Fonseca shell corporations were used for illegal purposes, including
fraud, kleptocracy, tax evasion, and evading international sanctions.

About the Panama Papers

Over a year ago, an anonymous source contacted the Sddeutsche Zeitung (SZ) and submitted
encrypted internal documents from Mossack Fonseca, a Panamanian law firm that sells
anonymous offshore companies around the world. These shell companies enable their owners to
cover up their business dealings, no matter how shady.
In the months that followed, the number of documents continued to grow far beyond the original
leak. Ultimately, SZ acquired about 2.6 terabytes of data, making the leak the biggest that
journalists had ever worked with. The source wanted neither financial compensation nor
anything else in return, apart from a few security measures.
The data provides rare insights into a world that can only exist in the shadows. It proves how a
global industry led by major banks, legal firms, and asset management companies secretly
manages the estates of the worlds rich and famous: from politicians, Fifa officials, fraudsters
and drug smugglers, to celebrities and professional athletes.

A group Effort
The Sddeutsche Zeitung decided to analyze the data in cooperation with the International
Consortium of Investigative Journalists (ICIJ). ICIJ had already coordinated the research for past
projects that SZ was also involved in, among them Offshore Leaks, Lux Leaks, and Swiss Leaks.
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Panama Papers is the biggest-ever international cooperation of its kind. In the past 12 months,
around 400 journalists from more than 100 media organizations in over 80 countries have taken
part in researching the documents. These have included teams from the Guardian and the BBC in
England, Le Monde in France, and La Nacin in Argentina. In Germany, SZ journalists have
cooperated with their colleagues from two public broadcasters, NDR and WDR. Journalists from
the Swiss Sonntagszeitung and the Austrian weekly Falter have also worked on the project, as
have their colleagues at ORF, Austrias national public broadcaster. The international team
initially met in Washington, Munich, Lillehammer and London to map out the research approach.
The Panama Papers include approximately 11.5 million documents more than the combined

total of the Wiki leaks Cable gate, Offshore Leaks, Lux Leaks, and Swiss Leaks. The data
primarily comprises e-mails, pdf files, photo files, and excerpts of an internal Mossack Fonseca
database. It covers a period spanning from the 1970s to the spring of 2016.

Moreover, the journalists crosschecked a large number of documents, including passport copies.
About two years ago, a whistleblower had already sold internal Mossack Fonseca data to the
German authorities, but the dataset was much older and smaller in scope: while it addressed a
few hundred offshore companies, the Panama Papers provide data on some 214,000 companies.
In the wake of the data purchase, last year investigators searched the homes and offices of about
100 people. The Commerzbank was also raided. As a consequence of their business dealings
with Mossack Fonseca, Commerzbank, HSH Nord bank, and Hypovereins bank agreed to pay
fines of around 20 million Euros, respectively. Since then, other countries have also acquired
data from the initial smaller leak, among them the United States, the UK, and Iceland.

The System
The leaked data is structured as follows: Mossack Fonseca created a folder for each shell firm.
Each folder contains e-mails, contracts, transcripts, and scanned documents. In some instances,
there are several thousand pages of documentation. First, the data had to be systematically
indexed to make searching through this sea of information possible. To this end, the Sddeutsche
Zeitung used Nuix, the same program that international investigators work with. Sddeutsche
Zeitung and ICIJ uploaded millions of documents onto high-performance computers. They
applied optical character recognition (OCR) to transform data into machine-readable and easy to
search files. The process turned images such as scanned IDs and signed contracts into
searchable text. This was an important step: it enabled journalists to comb through as large a
portion of the leak as possible using a simple search mask similar to Google.
The journalists compiled lists of important politicians, international criminals, and well-known
professional athletes, among others. The digital processing made it possible to then search the
leak for the names on these lists. The "party donations scandal" list contained 130 names, and the
UN sanctions list more than 600. In just a few minutes, the powerful search algorithm compared
the lists with the 11.5 million documents.

The Research
For each name found, a detailed research process was initiated that posed the following
questions: what is this persons role in the network of companies? Where does the money come
from? Where is it going? Is this structure legal?
Generally speaking, owning an offshore company is not illegal in itself. In fact, establishing an
offshore company can be seen as a logical step for a broad range of business transactions.
However, a look through the Panama Papers very quickly reveals that concealing the identities of
the true company owners was the primary aim in the vast majority of cases. From the outset, the
journalists had their work cut out for them. The providers of offshore companies among them
banks, lawyers, and investment advisors often keep their clients names secret and use proxies.
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In turn, the proxies tracks then lead to heads of state, important officials, and millionaires. Over
the course of the international project, journalists cooperated with one another to investigate
thousands of leads: they examined evidence, studied contracts, and spoke with experts.
Among others, Mossack Fonsecas clients include criminals and members of various Mafia
groups. The documents also expose bribery scandals and corrupt heads of state and government.
The alleged offshore companies of twelve current and former heads of state make up one of the
most spectacular parts of the leak, as do the links to other leaders, and to their families, closest
advisors, and friends. The Panamanian law firm also counts almost 200 other politicians from
around the globe among its clients, including a number of ministers.

The Company
The company at the center of all these stories is Mossack Fonseca, a Panamanian provider of
offshore companies with dozens of offices all over the world. It sells its shell firms in cities such
as Zurich, London, and Hong Kong in some instances at bargain prices. Clients can buy an
anonymous company for as little as USD 1,000. However, at this price it is just an empty shell.
For an extra fee, Mossack Fonseca provides a sham director and, if desired, conceals the
companys true shareholder. The result is an offshore company whose true purpose and
ownership structure is indecipherable from the outside. Mossack Fonseca has founded, sold, and
managed thousands of companies. The documents provide a detailed view of how Mossack
Fonseca routinely accepts to engage in business activities that potentially violate sanctions, in
addition to aiding and abetting tax evasion and money laundering.

About Sddeutsche Zeitung

Headquartered in Munich, Sddeutsche Zeitung (SZ) is one of Germanys leading newspapers.
SZ has a total readership of 4.4 million for its print and online media. Its investigative journalism
team counts five people, three of which are members of the International Consortium of
Investigative Journalists (ICIJ). The Sddeutsche Zeitunghas won a number of prestigious
awards for its research work. Its team has cooperated with other media organizations on a
number of projects, including Offshore Leaks, Swiss Leaks, and Lux Leaks, which ICIJ
coordinated. At the beginning of 2015, an anonymous source began sending the Sddeutsche
Zeitung data from Mossack Fonseca, a provider of offshore companies. This marked the
beginning of the Panama Papers project.

List of Pakistanis Listed on Panama Paper leaks

Pakistani Politicians in Panama Leaks:

Prime Minister Nawaz Sharif is linked to 9 companies connected to his family name. Those
involved are:
7

Hassan Nawaz
Hussain Nawaz
Maryam Nawaz

Relatives of Punjab Chief Minister and brother of Prime Minister Shahbaz Sharif are linked to 7
companies. They are:

Samina Durrani
Ilyas Mehraj

Now deceased former Prime Minister Benazir Bhutto was linked to one company. However
relatives and associates are linked to others:

Nephew Hassan Ali Jaffery

Javed Pasha, Close friend of Asif Ali Zardari (4 companies)
PPP Senator Rehman Malik (1 company)
PPP Senator Osman Saifullahs family (34 companies)
Anwar Saifullah
Salim Saifullah
Humayun Saifullah
Iqbal Saifullah
Javed Saifullah
Jehangir Saifullah
The Chaudharies of Gujrat have not been linked personally but other relatives have
including:
Waseem Gulzar
Zain Sukhera (co-accused with former Prime Minister Yusuf Raza Gilanis son in the Hajj
scandal)

Pakistani Businessmen in Panama Leaks:

Real Estate Czar Malik Riaz Hussains son (Bahria Town)

Ahmad Ali Riaz (1 company)
Chairman ABM Group of Companies Azam Sultan (5 companies)
Pizza Hut owner Aqeel Hussain and family (1 company)
Brother Tanwir Hassan
Chairman Soorty Enterprise Abdul Rashid Soorty and family
Sultan Ali Allana, Chairman of Habib Bank Limited (1 company)
Khawaja Iqbal Hassan, former NIB bank President (1 company)
Bashir Ahmed and Javed Shakoor of Buxly Paints (1 company)
Mehmood Ahmed of Berger Paints (1 company)
Hotel tycoon Sadruddin Hashwani and family (3 companies)

Murtaza Haswani
Owner of Hilton Pharma, Shehbaz Yasin Malik and family (1 company)
The Hussain Dawood family (2 companies)
Shahzada Dawood
Abdul Samad Dawood
Partner Saad Raja
The Abdullah family of Sapphire Textiles (5 companies)
Yousuf Abdullah and his wife
Muhammad Abdullah and his wife
Shahid Abdullah and his family
Nadeem Abdullah and family
Amer Abdullah and family
Gul Muhammad Tabba of Lucky Textiles
Shahid Nazir, CEO of Masood Textile Mills (1 company)
Partner Naziya Nazir
Zulfiqar Ali Lakhani, from Lakson Group and owner of Colgate-Palmolive, Tetley Clover
and Clover Pakistan (1 company)
Zulfiqar Paracha and family of Universal Corporation (1 company)

Pakistani Judges in Panama Leaks:

Serving Lahore High Court Judge Justice Farrukh Irfan

Retired Judge Malik Qayyum

Pakistani Media personnel in Panama Leaks:

Mir Shakil-ur-Rehman of GEO and Jang Group (1 company)

NAB could investigate Pakistanis listed in Panama Papers

According to reports the the National Accountability Bureau (NAB) of Pakistan has started an
inquiry into the involvement of Pakistanis in the ownership of offshore companies. A full
investigation may still happen after a discussion between top NAB officials.
While owning an offshore company isnt illegal in itself, the practice is commonly linked to tax
evasion and fraud. The law firm involved in the leak has clients from around the world, including
people linked to Russian President Vladimir Putin, Argentinian President Mauricio Macri
and football star Lionel Messi.
The documents reveal how world figures use a series of shell companies to obscure the trail of
their money and avoid paying national taxes. The techniques are also linked to money laundering
for drug smugglers and other criminal groups.
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Effects already being felt

The fallout from the scandal has the potential to reverberate around the world. The prime
minister of Iceland was forced to resign after it was revealed that he had not disclosed the fact
that he and his wife owned an offshore company.
In India a huge number of celebrities, businessmen and politicians have also been caught up in
the scandal. It is thought that many public figures have used the shell companies in order to
avoid paying taxes.
Nations around the world lose billions of dollars in tax revenue due to the existence of tax
havens such as Panama. There have been growing calls to clampdown on the practice and a
video of U.S. Democratic presidential hopeful Bernie Sanders has surfaced in which he criticizes
the signing of a free trade agreement with Panama.
He says that the agreement facilitates this kind of behavior, which costs the taxpayer millions. In
a country like Pakistan where so much money needs to be invested in infrastructure and other
programs in order to alleviate poverty, it is a scandal that so many people are effectively stealing
money from their countrymen.
While it should come as no surprise that rich people try to hold on to their money, the leaks
provide hope that the flagrant tax dodging could come to an end.

UPDATE 5/9/2016 1: PM ET: (NEW LIST OF PAKISTANIS

NAMED IN PANAMA PAPERS LEAK)
Here are the key people named in the new list:
Zulfikar Abbas Bokhari: A close aide of Imran Khan. Bokhari owns six offshore companies
along with his two sisters. He was smart enough not to give his Pakistani address while
incorporating any of the six companies. But one of his sisters had given the address of
Islamabad. Zulfi Bokharis father was a minister in the interim government in 2008.
Wamiq Zuberi & Rukhsana Zuberi: Zuberi of Business Recorder and his wife Rukhsana
Zuberi (former PPP senator) have also invested in an offshore entity. Wamiq acknowledged that
the company was owned by an unnamed person who was killed in Islamabad. The couple
stopped investing after they were defrauded.
Irfan Iqbal Puri: He has strong ties with Altaf Hussain and Asif Ali Zardari. Puri is the owner
of three offshore entities named in the Panama Papers. At one point, he had claimed that he was
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the business partner of Zardari. He had also reportedly submitted surety bonds of one million
pounds for the MQM chief Altaf Hussains bail.
Naseer Khan: Naseer is the former health minister in Shaukat Aziz government. He along with
his son Muhammad Jibran and his brother Zaffarullah Khan owns Atwood Investments Limited.
Abdul Sattar Dero: The NRO beneficiary and former MD Port Qasim Authority owns two
offshore companies: Destiny Investment Development Limited and Simkins International
Limited. Abdul Sattar Dero has close ties with the Zardari family.
Saba Obaid: She is the mother of Oscar-winning filmmaker Sharmeen Obaid-Chinoy. Saba
Obaid owns three offshore companies: Belize Group, Bella Holding Group, and Fabrics
International Services Limited. Documents indicate that Fabrics International was established to
receive commission from a toweling/fabric factory in Pakistan. Notably, Saba Obaid owns a
Karachi-based textiles company called Towellers Limited.
Mehreen Akbar: The wife of Ghous Akbar owns shares in four offshore companies: Mark
Investment Limited, IMM Gulf Limited, Indigo Properties Limited and Zarmay Investments Ltd.
All the four companies are based in Seychelles. Mehreens sisters Mahim and Irum are also
shareholders in these entities. Ghous Akbar told media that he had nothing to do with any of
these companies.
Valliani family: Fawaz Valliani, his sister Zehra Valliani and their mother Sameena Valliani have
been linked with four companies: Emirates Commerce Limited, Ikogenia Trust, European
American Investments Limited, and Polenta Capital. Zehra told media that her brother Fawaz
might have formed these entities without her and her mothers consent.
Munir Monnoo: The chief of Olympia International along with his son Humayun has set up a
company called Clifton Holdings Services Incorporated. Documents suggest that the companys
nature of business is to open accounts in Swiss banks.
Shaukat Ahmed: The former president of Karachi Chamber of Commerce has been identified as
the owner of Seychelles-based Global Link Properties. Other shareholders of the company
include Shaukats son Imran Shaukat and daughter-in-law. Imran Shaukat is also one of the
beneficiary shareholders of Emirates International Holdings Ltd.

Sajid Mahmood: He is the son of Seth Abid Ali of Lahore. Sajid is the owner of Mossgreen
Limited, which is based in the British Virgin Islands. Other shareholders include Ajaz Mahmood,
Bushra Azad, and Akbar Mahmood. The family runs more than a dozen companies in Pakistan.
Tariq Islam: A cousin of former PM Benazir Bhutto, Islam is the owner of Link Investments
Limited.
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A lot more names are likely to be revealed at 18:00 GMT on 5-9-2016, said ICIJ. The upcoming
searchable online database will allow people to go through the original documents of Mossack
Fonseca to see the owners of offshore companies. However, the ICIJ will not provide personal
details of owners such as passport numbers, email addresses, and phone numbers

NEWS RELATED TO PANAMA LEAKS IN PAKISTAN

Prime Minister Nawaz Sharif finally turned up at the National Assembly on Monday for his
much-vaunted appearance and announced that a parliamentary committee will rewrite the
terms of reference (ToRs) for a commission to probe the Panama leaks while underlining the
need for stringent accountability laws in the country.
I would recommend the formation of a committee in the [lower] house, in consultation with
Khursheed Shah which would finalise comprehensive ToRs and other related [matters] for
across-the-board investigations, Nawaz said in a policy speech which was applauded by
members of the ruling party Pakistan Muslim League (PML-N).
Panamagate: PMs refusal to answer 7 questions prompts oppositions walkout
PM Nawaz has been squirming under opposition pressure ever since the Panama Papers
revealed on April 4 that some members of the Sharif family, including three children of the
prime minister, had secreted their wealth in offshore holdings in international tax havens along
with several other wealthy and powerful people from across the globe.
While he had acquiesced to the opposition demands to probe the leaks, writing a letter to the
Chief Justice of Pakistan Anwar Zaheer Jamali requesting him to set up a judicial commission
to probe the 220 Pakistanis named in the leaks. But amid the furore from the opposition which
drafted its own set of ToRs for the commission, the CJP turned down the premiers request.
On Monday, Nawaz left it to the parliamentary committee to take a decision about which
forum should hold the investigations.
Appearing in the assembly for the first time since details of his familys offshore holdings
came to light, Nawaz followed the carefully prepared script, avoiding the incisive and
inquisitive set of seven questions that the opposition asked about the premiers source of
income and details of his and his familys assets.

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Keeping in view the oppositions demand for documentary evidence on the PMs assets,
Nawaz submitted tax details for himself and that of his family. He also showed the National
Assembly some pictures to prove the wellbeing of his family financials before he entered
politics.
His speech, lasting around half an hour, echoed those in the two addresses to the nation he
made in April in the aftermath of the Panama leaks. He reiterated how his family was a victim
to nationalisation. But he hit hard at the Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan.
Not answerable to opposition on Panama Papers, says PM Nawaz
I have nothing to hide, Nawaz said as he turned down oppositions generous offer to settle
the issue by answering the seven questions in Parliament.
This issue should not end this way let there be through investigations and let truth prevail,
he asserted.
He went on to present a detailed response in chronological order to the Panama leaks probe.
I assure you that the government wants investigations but the opposition was targeting one
person [the PM], he lamented.
He went on to express his bewilderment at how a man whose name does not appear in the leaks
has been indicted before investigations even begin.
We have faced unilateral accountability in the past and are ready for accountability today, he
said while presenting himself for accountability, adding that the story of those who have
evaded taxes, written-off loans, laundered money and did corruption should also be told to the
nation.
He suggested the opposition revisit the countrys accountability laws in line with the Charter of
Democracy (CoD) signed with the Pakistan Peoples Party, to address the weaknesses in
existing laws.
Nawaz detailed his familys business empire from the time how Ittefaq Foundaries, worth Rs45
million, were nationalised in 1972. He went on to say that all loans they had taken had been
returned.
I am telling you this to explain the financial position of my family before I entered politics,
he explained.

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He went on to clarify that over the past 23 years, including the eight years he spent in exile his
family paid Rs10 billion in taxes. I have paid Rs36 million in taxes.
Responding to the oppositions questions about the source of funds for the London properties
owned by his family, Nawaz narrated a detailed story of how his late father had established the
Gulf Steel in Dubai in 1972, presenting pictures of its inauguration. He explained that this
establishment was sold for $9 million in 1980.
I want to make it clear that not a single penny was sent [from Pakistan] for either setting up a
mill in Jeddah or for purchase of flats in London, he added.
He then took on the PTI chief, his strongest critic thus far, asking about his source of income
and taxes paid.
They should tell where they were standing [financially] in 1970s and 80s and what the source
of income for their luxurious life is today, he added.
The opposition however, predictably, rejected Nawazs answers. But then instead of mounting
a scathing rebuttal, they surprisingly walked out of the house.
Dar urges Speaker to notify committee
Shortly after the opposition stormed out of the NA, Finance Minister Ishaq Dar urged the NA
Speaker to notify a committee of the lower house in consultation with the Leader of the
Opposition to form joint ToRs for the probe commission.
Opposition preps seven blunt questions for PM Nawaz over Panama leaks
I request you Mr Speaker to call the opposition leader after the session so a committee could
be constituted over joint ToRs to reach the logical conclusion, said Dar.
Sources in the National Assembly told The Express Tribune that the speaker is expected to
formally contact opposition leader Khursheed Shah today (Tuesday) over the committee.

Published in The Express Tribune, May 17 th, 2016.

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