Tax trouble: Pak World T20 stars amassing crores in undeclared wealth
Islamabad: Cricketer are known for earning big amount of money from playing cricket and other activities like endorsing brands and appearing for commercials.
Recent news published in Pakistan's leading daily dawn.com, has revealed that many top cricketers of Pakistan do not pay their taxes.
According to a release by Pakistan Government's Federal Board of Revenues (FBR), 21 players in Pakistan cricket team are not paying taxes or have succeeded in avoiding tax by using loopholes in the system.
In normal circumstances the tax is normally deducted at the source, However, a person is still are expected to file income return to reveal all their sources of income.
People who do not file their return/statement/ wealth statement could be subjected to fine. The penalty could range from Rs. 5,000 to 255 of the tax payable in the year.
The intelligence agency of the board found that six players were not even on the list of people paying/ filing tax returns. The six players are Rana Naveed-ul-Hassan, Wahab Riaz, Asad Shafiq, Tanvir Ahmed, Yasir Arafat and Kamran Akmal.
Some of the players have been earning money by appearing for Pakistan Cricket team since 2002.
PCB and other organizations deduct tax at the time of paying them. For example, the National Bank of Pakistan deducted Kamran Akmal's income when he was a part of the team.
The players do not have their National Tax Number (NTN), without which they cannot even buy a car in Pakistan, reported the news report.
Since the players did not file their tax returns, the government is not sure of their other sources of income. Usually an international cricketer has multiple avenues to make money. For example, a player apart from getting paid by the Board makes money by playing for other international tournaments like IPL and county cricket. The players are involved in endorsement of products and advertisements, thus enabling them to earn big amounts.
Any income earned abroad and repatriated to Pakistan through banking channels is exempted from income tax but not from being declared.
The news report names 15 other players, who have not filed their income tax return in 2010-2011. These players are-Imran Farhat, Saeed Ajmal, Taufiq Umer, Muhammad Umer Akmal, Abdul Rehman, Umar Gul, and Sohail Tanveer.
Misbahul Haq was a bit gracious in comparison to his other teammates. He filed his employee statement in 2010, but failed to do the same in subsequent year.
The story of Muhammad Hafeez, captain of the T20 matches in the same series against Australia, is no different.
Senior cricketers such as Muhammad Younus Khan and Shoaib Akhtar have also been guilty of this.
Under the Pakistan’s income tax law, those who pay more than Rs35, 000 in income tax in a year, are also supposed to file a wealth statement; this is mandatory.
None of the players have filed their wealth statement despite a large sum of deductions were made as tax from their earnings from the source.
Misbah-ul-Haq (2010) Rs 1.479 million
Misbah-ul-Haq (2011) Rs 362 million
Muhammad Hafeez (2011) Rs 1.33 million
Muhammad Hafeez (2010) Rs 0.351 million
Shoaib Malik (2011) Rs 1.179 million
Shoaib Malik (2010) Rs 3.976 million
In contrast, Indian cricketers are one of the highest taxes paying citizens of the nation. Sachin Tendulkar was recently in news for returning highest amount of tax. He returned a total of Rs 1.5 crore, last year. He edged out another cricketer, Mahendra Singh Dhoni. Dhoni returned a total of 1 crore, while Dada played 90 lakhs and bhajji 70 lakhs.
Lalit Modi was amongst the highest paid taxpayers, with a staggering Rs 3 crore.
To read more on that click here.