Imran admits having set up an offshore company

ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) chairman Imran Khan Tuesday admitted to have set up an offshore firm 'Niazi Services Limited' for sale and purchase of his London apartment.

The Supreme Court of Pakistan will on Wednesday conduct hearing of a constitutional petition against Imran Khan seeking to declare him ineligible for hiding assets. The petition was filed by Pakistan Muslim League-Nawaz (PML-N) leader Hanif Abbasi.

In response to the allegations leveled by Abbasi, PTI attorney Naeem Bukhari submitted a reply in the apex court today, on behalf of Imran Khan.

The PTI chairman, in his reply, said he did not classify as a taxpayer in Pakistan, when he purchased a flat in London. The apartment was purchased for 117,000 pounds from his earnings abroad.

"The land in Bani Gala was acquired in 2002 for Rs43.5 million, which were paid in installments," stated Khan. "The advance given for the Bani Gala land acquisition was Rs6.5 million."

It was further stated that upon delay in selling of London apartment, Jemima Goldsmith - Imran Khan's former wife - paid the amount for Bani Gala land. "It was decided that the money received from the sale of London purchase would be given to Jemima," the document read.

The flat was sold out for 715,000 pounds and, after deduction of tax, 690,307 pounds were received, Imran Khan said in his reply. The amount was paid back to Jemima in March, 2003.

Imran Khan, in his reply, said that he never claimed that setting up an offshore company was a crime, besides mentioning the flat worth Rs60 million on Shahrah e Dastoor was shown in tax returns.

He also claimed to have paid 12 per cent tax in Pakistan on the amount received from the sale of his London apartment, although this was not necessary under the Tax Amnesty Scheme.

Khan, however, said that he did not take any favor from the scheme in 2000.

The skipper rebutted the allegations of hiding ownership of his offshore firm with any malafide intent.

"The company was only worth nine pounds after the sale of London flat and it was just a shell firm," he stated.