ACC seeks to amend law

A move is on to amend the law of the Anti-Corruption Commission (ACC) to enable the latter to have access to the taxpayers' information, at both individual and corporate levels, by withdrawing all the existing restrictions.

It has been taken up, as a sequel to hindrances, being faced by the anti-graft body, to getting access to the taxpayers' information.

Under the existing rules of the income tax law, the disclosure of tax-related information to the government or private entities, except some special cases, is not permissible.

The need for empowering the ACC to have access to such kinds of information has arisen after the anti-graft body felt the urgency of getting income tax-related information about some taxpayers for its investigation.

A proposal regarding the amendment of ACC law is set to be placed before commission today (Thursday), sources said.

In a recent letter, the ACC officially sought information on some influential persons' tax files for its investigation.

Upon receiving the letter, the income tax authorities have decided to seek the legal opinion of the ministry of law about the issue.

The existing section-163 of Income Tax Act states that the taxmen are legally bound to keep privacy of the taxpayers' personal information shown in their respective tax files.

The ACC is seeking an amendment to this rule, framed in the context of the afore-mentioned section of existing income tax law, in order to carry out its unhindered investigation into graft allegations, more effectively, insiders observed.

ACC commissioner Dr Nasir Uddin Ahmed said the rules would be amended within a short time to facilitate the anti-graft watch-dog to have access to information needed by it.

"All state-owned entities will have to share information with the ACC to help in its fight against corruption," he said.

There will also be provisions for penalty and legal actions if any entity does not cooperate with the ACC by providing the required information, he added.

The existing ACC law has the provision for imprisonment of any defaulting person, up to a maximum period of three years, along with financial penalty, in the event of non-cooperates with it by not providing the required information during investigations.

NBR former member (income tax policy) Aminur Rahman said the tax authorities can share information only with the court, and during the period of making an investigation into any allegation against government officials upon the requirement for such information by the government department concerned.

He said although the income tax law has a bar to sharing information, in the event of any dispute arising over the relevance of any provision of the 'laws' the latest one will then be considered for enforcement, as per the provision under another law.

The ACC laws were framed in 2004 and the income tax law in 1984. There are no such rules in the ACC law to supersede other ones by empowering it otherwise, he added.

If the ACC law incorporates any provision on sharing information from the board, the NBR has to provide this as per the provisions of the existing law, he added.

"Taxmen have to provide information if the ACC files any criminal cases against anybody with the court," Mr Rahman said.  

A senior tax official noted that the tax authorities are confused about providing taxpayers' information to the ACC as the income tax law has restrictions on it.

The NBR has decided to take vetting of the ministry of law on this matter, he added.

When the anti-corruption bureau was earlier in place before the ACC was constituted, the NBR had failed to get the approval of the ministry of law on sharing taxpayers' information with the bureau.

"Taxmen are confused about what to do if the commission wants information from it," the tax official said.

Taxmen have to abide by the Income Tax Ordinance 1984, as it clearly states that the ordinance can supersede any other law.

Sources concerned said earlier taxmen unofficially shared information of some influential people, considering the nature and urgency of the need for investigation, but it is not possible to share such information through official channel under the existing law.