Najam Sethi was part of the caretaker set up in 1996 which held elections that were massively rigged. He also did that ‘Princess and the Playboy’ where MNAs projects were shown by BBC’s Panorama as ‘corruption of BB/Zardari’. Najam Sethi was Prime Minister’s Adviser (federal minister) on Political Affairs and Accountability after President Leghari dismissed Benazir Bhutto in 1996.
Source: Adapted from View Point Online with some additional information.
Rs 15,820,315 and Rs 3,803,923 were either concealed or under-declared in 2010 and 2011 respectively
Investigations by tax authorities reveal that although noted TV anchorperson Najam Sethi filed his Income Tax returns for the tax years 2010 and 2011 yet he resorted to misdeclaration and concealment of his income.
For the year 2010 [period of receipts July 2009-June2010], Mr Sethi (CNIC 3520230172081, National Tax Number 453890) received payments from the following payers:
National Communication, Hum Network, Century Publications, Kalaam Communication (Pvt) Ltd, and Media Times (Ltd).
He declared receipts from all sources (including exempt income) worth Rs 48, 924, 558. Tax to the tune of Rs 3, 065, 197 was deducted. However, according to investigations he received an amount of Rs 64, 823, 743 and the due tax amount was Rs 4, 488, 754.
For the year 2011 [period of receipts July 2010-June 2011], he received payments from the following payers:
National Communication, Hum Network, Media Times (Ltd), Beyond Borders Ltd, IGI Investments Bank Ltd, and TFT GT (Pvt) Ltd.
He declared receipts of Rs 33, 078, 596 and paid tax to the tune of Rs 8,449, 221. However, tax authorities have identified an income of Rs. 68, 186, 219 liable for a tax deduction to the tune of Rs 7, 102, 683.
While it is evident that Mr Sethi has concealed his income, he it seems has paid the tax he was supposed to pay if we consider tax deductions over a period of two years. However, a few caveats are in order here to appreciate his genius at twisting figures.
For the first, according to investigations he is guilty of concealing his real income. Official investigations reveal that Mr Sethi has received payments not merely in his personal capacity but as director beyond Borders (Pvt) Ltd (BBL). It came out that media houses while disbursing payments mentioned either Mr Sethi’s CNIC or National Tax Number but payments were shown to Beyond Borders. To unveil the mystery, the tax authorities conducted a thorough probe. The probe led to the following position:
Tax year Total payments On behalf of BBL Najam Sethi’s receipts Declared Receipts
2010 64, 823,743 31,719,500 33,104, 243 48,924,558
2011 68,186,219 31,303,700 36,882,519 33,078,596
In other words Rs 15,820,315 and Rs 3,803,923 were either concealed or under-declared in 2010 and 2011 respectively.
Even in the case of BBL, tax authorities have found certain discrepancy. A probe into BBL income revealed the following position:
Tax year : 2010
Payments to BBL: 37,867,571
Payments to Najam Sethi on BBL’s behalf: 31,719,500
BBL’s total receipts: 69,587,071
BBL’s declared receipts : 30,289,500
A similar pattern is found for the tax year 2011:
Tax year : 2011
Payments to BBL: 9,686,981
Payments to Najam Sethi on BBL’s behalf: 31,303,700
BBL’s total receipts: 40,990,681
BBL’s declared receipts : 22,709,500
For the second, Najam Sethi has not declared any receipts from Geo/Jang Group even if he had joined country’s biggest media house by January 2011.
Thirdly, Najam Sethi has been working on ventures abroad. However, his declarations do not mention any foreign source of income. As resident individual, his foreign sources of income are also taxable in Pakistan.
Tax authorities are also verifying reports regarding two properties in his name in the USA. Documents in the possession of tax authorities show that Mr Sethi own own the following properties in the USA:
Unit 25E, Block 1171, 100 Riverside Boulevard, Manhattan (Single residential condo Unit).
Unit 5M, Block 1869 Lot 1336, 240 West 98th Street, Manhattan (Single residential condo Unit).
Rs 20 million tax notice by FBR to Caretaker Chief Minister Punjab. Najam Sethi bought an apartment in New York in July 2008 for US$ 1.2 million & source was unexplained
Dawn TV anchor Talat Hussain recently alleged in this talk show that Najam Sethi’s ‘chiRya’ (inside information source) is actually Malik Riaz.
Later Najam Sethi in his talk show criticized Talat and that was replied by Talat in his talk show by declaring all his assets and challenging Sethi to do that. Now as per some documents, Sethi owns properties in US that are likely to be declared or exposed.
Some people, through social media , even has alleged that Sethi recieved all these properties as benfits from his ‘Chirya’ aka Malik Riaz.