Asim Saleem Bajwa briefs media in June 2015, while serving as the Pakistani army spokesman before his retirement. AFP
Asim Saleem Bajwa briefs media in June 2015, while serving as the Pakistani army spokesman before his retirement. AFP
Asim Saleem Bajwa briefs media in June 2015, while serving as the Pakistani army spokesman before his retirement. AFP
Asim Saleem Bajwa briefs media in June 2015, while serving as the Pakistani army spokesman before his retirement. AFP

Senior Pakistani general faces scrutiny over family's business


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A retired general holding one of Pakistan's most sensitive posts is facing scrutiny over his family's finances after an investigative report claimed they acquired a vast empire as he rose through the ranks.
The report on Gen Asim Saleem Bajwa's family finances has triggered opposition calls for a high-level inquiry and demands for greater accountability from the powerful generals who wield huge influence in Pakistan.
Gen Bajwa has strongly denied the findings of the investigation by a Pakistani journalist and dismissed them as malicious propaganda.
The senior officer chairs the government body overseeing billions of dollars of investment from China, and also advises the prime minister, Imran Khan, on information and broadcasting.
The general on Thursday offered his resignation as special adviser, which Mr Khan refused to accept.
The investigation reported on a news website called FactFocus said company records and filings showed Gen Bajwa's brothers, wife and sons amassed businesses, property and assets worth tens of millions of dollars in the past two decades.
According to the report, the family owns a business empire which set up 99 companies in four countries, including a pizza franchise with 133 restaurants. Gen Bajwa's wife jointly owns businesses and assets worth $52.7 million (Dh194m), the report said. The National has been unable to independently verify the records.
While the investigation makes no specific allegations of corruption, it said Gen Bajwa had not mentioned the interests when making a June asset declaration for his role as an aide to Mr Khan.
Gen Bajwa at first replied with only a terse tweet saying he strongly rebutted a "malicious propaganda story published on an unknown site".
Government officials claimed the report was an attempt by foreign intelligence agencies to undermine confidence in him and weaken Chinese investment.

A week later Gen Bajwa published a four-page statement saying he "vehemently denied" the report. He said his wife had got rid of all her investments three weeks before he made his asset declaration. Many of the companies listed in the report were dormant and investment in the family business had been almost entirely fuelled by bank loans, rather than family money, he said.
Pakistani media, which watchdogs say faces increasing repression for criticising the government or powerful military, at first barely covered the story.
Ahmad Noorani, the journalist behind the investigation, told The National that the website had come under nearly constant cyber attack after publishing his report.
Overseas assets held by senior politicians and officials have become a hot political topic, with Mr Khan railing against what he says is the looting of his country.
Promising to wipe out corruption by a venal elite was the centrepiece of the election campaign which swept Mr Khan and his Pakistan Tehreek-e-Insaf party to power in 2018.
A federal anti-corruption watchdog has since pursued a string of cases against leaders of the Pakistan Muslim League (PML-N) and Pakistan Peoples Party (PPP), often alleging they squirrelled money abroad.
The opposition parties have called the probes a politically driven witch hunt and questioned why investigators did not look at governing politicians or the military.
"I want to question Imran Khan and his government that today, when allegations have been made against Asim Saleem Bajwa with proof, why is his narrative of accountability sleeping?" PML-N vice president Maryam Nawaz said last week.
Mr Khan's government said it was satisfied with Gen Bajwa's explanation of his finances and that he had been asked to continue advising the prime minister.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Asia Cup Qualifier

Final
UAE v Hong Kong

Live on OSN Cricket HD. Coverage starts at 5.30am

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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