Category: Taxation

Pakistan Revenue delivers the latest taxation news, covering income tax, sales tax, and customs duty. Stay updated with insights on tax policies, regulations, and financial developments in Pakistan.

Sales Tax Act 1990: exemption on domestic supplies, imports

KARACHI: The government has allowed exemption on supply of goods and import of goods falling in the Sixth Schedule of Sales Tax Act, 1990.

Section 13 of updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), explained the exemptions on domestic supplies and imported goods.

Section 13: Exemption

Sub-Section (1): Notwithstanding the provisions of section 3, supply of goods or import of goods specified in the Sixth Schedule shall, subject to such conditions as may be specified by the Federal Government, be exempt from tax under this Act.

Sub-Section (2): Notwithstanding the provisions of sub-section (1) –

(a) the Federal Government may, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in taxes, development of backward areas and implementation of bilateral, multilateral agreements and matters relating to international financial institutions or foreign government-owned financial institutions by notification in the official Gazette, exempt any taxable supplies made or import or supply of any goods or class of goods, from the whole or any part of the tax chargeable under this Act, subject to the conditions and limitations specified therein;

Sub-Section (3): The exemption from tax chargeable under sub-section (2) may be allowed from any previous date specified in the notification issued under clause (a).

Sub-Section (4): omitted

Sub-Section (5): omitted

Sub-Section (6): The Board shall place before the National Assembly all notifications issued under this section in a financial year.

Sub-Section (7): Any notification issued under sub-section (2), after 1st July, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued:

Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from the 1st July, 2016 and shall continue to be in force till the 30th June, 2018, if not earlier rescinded:

Provided further that all notifications issued on or after the first day of July, 2016 and placed before the National Assembly as required under sub-section (6) shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded by the Federal Government or the National Assembly.

April 13, 2019
SRB suspends registration of IT firm for unrealistic input tax adjustment

KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of an information technology (IT) firm for unrealistic adjustment of input tax adjustment.

According to a notice, the SRB suspended sales tax registration of M/s. Cube XS Weatherly (Pvt) Limited. The SRB said that the taxpayer had filed nil return for the tax periods from October 2013 to January 2019 and claimed / adjusted heavy amount of input tax wherein the input-to-output tax ratio is as much as 2,573 percent, which is neither economically possible nor is allowed under provision of Sindh Sales Tax Act, 2011.

The SRB further said that the taxpayer had adjusted/claimed full amount of input tax without apportioning the same which was tantamount to tax fraud and was also contravention under provincial tax laws.

The taxpayers had been asked in hearing on February 14, 2019 to furnish the copies of audited financial statements along with bifurcation of revenues/sales but registered person failed to do so.

“The registered person has neither deposited the Sindh sales tax nor e-filed the returns for the tax period of February 2019,” the SRB said.

The SRB directed the taxpayer to take remedial actions by April 25, 2019 to revoke the suspension.

In case of non-satisfactory response or failure to take remedial measures on or before April 25, 2019 the case would be further proceeded for cancellation of the taxpayer’s registration with SRB, the notice said.

April 13, 2019
MCC Appraisement West announce auction of 57 fresh and leftover vehicles on April 15

KARACHI: Model Customs Collectorate (MCC) Appraisement – West announced public auction of fresh and leftover motor vehicles to be held on April 15, 2019 at Al-Hamd International Container Terminal (AICT).

Following vehicles to be presented for the auction:

01. Used Mitsubishi Car, Model 2009

02. Used Volkswagen AG Car, Model 2013, Engine Capacity 999 CC

03. Used Mitsubishi Mini Cab, Model 2013

04. Used Nissan Clipper, Model 2012

05. Used Toyota KX-R V6, Model 2013, Engine capacity 3456 ML

06. Used Honda FIT Car, Model 2014

07. Used Suzuki Carry, Model 2013, Engine capacity 650 CC

08. Used Honda FIT Hybrid Car, Model 2017

09. Used Honda ACTY Van, Model 2017

10. Used Daihatsu Mira E:S Car, Model 2015, Engine capacity 658 CC

11. Old & Used Toyota Mark-II (Grande) Car, Model 2004, Engine capacity 2000 CC

12. Old & Used Toyota Mark-II (Grande) Car, Model 2000, Engine capacity 2000 CC

13. Old & Used Toyota Mark-X-250G, Model 2005 Engine capacity 2500 CC

14. Old & Used Toyota Hilux 4X4, Model 2009, Engine capacity 3000 CC

15. Used Toyota Hiace Van, Engine capacity 2446 CC

16. Old & Used Toyota Hiace Van Ambulance, Model 1995, Engine capacity 2446 CC

17. Old & Used Toyota Hilux Pickup D/ Cabin, Model 2008, Engine capacity 2779 CC

18. Old and Used Toyota Vigo, Model 2005, Engine capacity 2779 CC

19. Old and Used Toyota Hilux 4X4, Model 2002, Engine capacity 2779 CC

20. Old and Used Toyota Hilux 4X4, Model 2002, Engine capacity 2779 CC

21. Old & Used Toyota Hilux 4X4, Model 2000, Engine capacity 2779 CC

22. Old and Used Toyota Hilux 4X4, Model 2002, Engine capacity 2779 CC

23. Old and Used Toyota Hilux 4X4, Model 2002, Engine capacity 2779 CC

24. Old and Used Toyota Hilux 4X4, Model 2002, Engine capacity 2779 CC

25. Old and Used Toyota Hliux Pickup 4X4, Model 2002, Engine capacity 2779 CC

26. Old and Used Toyota Hilux 4X4, Model 2000, Engine capacity 2779 CC

27. Old and Used Toyota Hilux 4X4, Model 2000, Engine capacity 2779 CC

28. Old and Used Toyota Tsusho 4X4, Model 2000, Engine capacity 2779 CC

29. Old and Used Toyota Hliux Pickup 4X4, Model 2002, Engine capacity 2779 CC

30. Old and Used Toyota Hliux Pickup 4X4, Model 2002, Engine capacity 2779 CC

31. Old and Used Toyota Hliux Pickup 4X4, Model 2002, Engine capacity 2779 CC

32. Old and Used Toyota Hliux Pickup 4X4 , Model 2002, Engine capacity 2779 CC

33. Old and Used Toyota Hliux Pickup 4X4, Model 2000, Engine capacity 2779 CC

34. Old & Used Mitsubishi Van, Model 1997, Engine capacity 2477 CC

35. Used Toyota Land Cruiser VX, Model 2001, Engine capacity 4164 CC

36. Old & Used Toyota Land Crusier VX (V8) Armored “Delivered under Sr. 22 of Part-II, Appendix-B of IPO-2016”, Model 2000, Engine capacity 2779 CC

37. Used Suzuki Alto SZ3 Car, Model 2009

38. Used Suzuki Every Wagon, Model 2009, Engine capacity 660 CC

39. Used Sabaru (Sambar) Van, Model 2005

40. Used Mitsubishi Mirage Car, Model 2012

41. Used Suzuki Alto ECO Car, Model 2012

42. Used Suzuki Wagon-R Car Limited, Model 2012

43. Used Suzuki Baleno Car, Model 2016

44. Used Daihatsu Mira, Model 2013, Engine capacity 658 CC

45. Used Nissan Dayz, Model 2013

46. Used Sabaru PLEO, Model 2013, Engine capacity 658 CC

47. “Used Suzuki Stingray Wagon-R (without extra goods)”, Model 2013

48. Used Toyota Vitz Car, Model 2013, Engine capacity 996 mL

49. Used Daihatsu Conte Move Car, Model 2014, Engine capacity 658 CC

50. Used Toyota AQUA Hybrid Car, Model 2014, Engine capacity 1496 CC

51. Used Nissan MOCO Car, Model 2014

52. Used Daihatsu Move Car, Model 2014, Engine capacity 658 CC

53. Used Honda FIT Car Hybrid, Model 2016

54. Used Suzuki Hustler Car, Model 2015

55. Used Daihatsu Tanto Car, Model 2015, Engine capacity 658 CC

56. Used Suzuki Wagon-R Car

57. Used Honda N-WGN, Model 2015

April 12, 2019
FBR announces major reshuffle; transfers 41 customs officers of BS-17-18

ISLAMABAD: Federal Board of Revenue (FBR) on Friday announced major reshuffle in Pakistan Customs Service (PCS) and transferred and posted 41 officers of BS17 and BS-18 with immediate effect and until further order.

The FBR notified transfers and postings of following officers:

01. Ms. Tayyaba Bukhari (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement, Lahore from the post of Deputy Director, Directorate of Input Output Coefficient Organization (North), Lahore.

02. Khaldun Ul Haq (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate, Gilgit-Baltistan from the post of Deputy Director, Directorate General of Intelligence & Investigation, FBR, Islamabad.

03. Mohammad Rehan Akram (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement, Lahore from the post of Deputy Director, Directorate of Reforms and Automation (Customs), Karachi.

04. Muhammad Azam (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate General of Transit Trade, Karachi from the post of Deputy Director, Directorate of Intelligence & Investigation-FBR, Quetta.

05. Ms. Nazia Saleem (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate, Islamabad from the post of Deputy Collector, Model Customs Collectorate of Appraisement, Lahore.

06. Wahaj Saghir (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate, Gilgit-Baltistan from the post of Deputy Director, Directorate General of Transit Trade, Karachi.

07. Asfand Yar Khan (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Strategic Control Division, Ministry of Foreign Affairs, Islamabad from the post of Deputy Collector, Model Customs Collectorate, Gilgit-Baltistan

08. Abdul Qudoos (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Preventive, Quetta from the post of Deputy Director, Directorate General of Customs Valuation, Karachi.

09. Ms. Sadia Usman (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation,FBR, Rawalpindi from the post of Deputy Collector, Model Customs Collectorate, Islamabad

10. Tariq Mashkoor (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi from the post of Deputy Director, Directorate of Input Output Coefficient Organization (South), Karachi.

11. Nawabzada Kamran Khan Jogezai (Pakistan Customs Service/BS-17) has been transferred and posted as Deputy Director, (OPS) Directorate General of Post Clearance Audit, Islamabad from the post of Deputy Director, (OPS) Directorate General of Internal Audit (Customs), Islamabad.

12. Ms. Maryam Khalid (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Islamabad from the post of Deputy Director, (OPS) Strategic Control Division, Ministry of Foreign Affairs, Islamabad.

13. Ghulam Muhammad (Pakistan Customs Service/BS-17) has been transferred and posted as Deputy Director, (OPS) Directorate General of Customs Valuation, Karachi from the post of Deputy Collector, (OPS) Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi.

14. Malik Muhammad Ahmed (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Gwadar from the post of Assistant Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi.

15. Muhammad Ibrahim (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement, Quetta from the post of Deputy Collector, Model Customs Collectorate, Quetta.

16. Asim Rehman (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Preventive, Quetta from the post of Deputy Collector, Model Customs Collectorate, Quetta.

17. Muhammad Faisal (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, MCC of JIAP, Karachi from the post of Deputy Collector, Model Customs Collectorate of Preventive, Karachi.

18. Junaid Mahmood (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement, Quetta from the post of Deputy Collector, Model Customs Collectorate, Quetta.

19. Dr. Tahir Iqbal Khattak (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement, Peshawar from the post of Deputy Collector, Model Customs Collectorate, Peshawar.

20. Imran Afzal (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, MCC of JIAP, Karachi from the post of Deputy Collector, Model Customs Collectorate of Preventive, Karachi.

21. Maqbool Ahmad (Pakistan Customs Service/BS-17) has been transferred and posted as Deputy Collector, (OPS) Model Customs Collectorate of Appraisement, Quetta from the post of Deputy Collector, (OPS) Model Customs Collectorate, Quetta.

22. Najeeb Arjumand (Pakistan Customs Service/BS-17) has been transferred and posted as Deputy Collector, (OPS) Model Customs Collectorate of Preventive, Peshawar from the post of Deputy Collector, (OPS) Model Customs Collectorate, Peshawar.

23. Waseem Feroz (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, MCC of JIAP, Karachi from the post of Assistant Collector, Model Customs Collectorate of Preventive, Karachi.

24. Shah Faisal (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Preventive, Quetta from the post of Assistant Collector, Model Customs Collectorate, Quetta.

25. Syeda Sadaf Ali Shah (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement, Peshawar from the post of Assistant Collector, Model Customs Collectorate, Peshawar.

26. Asma Javed Paracha (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector (Prob), Model Customs Collectorate of Appraisement, Peshawar from the post of Assistant Collector (Prob), Model Customs Collectorate, Peshawar.

27. Akmal Shahzad (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement, Quetta from the post of Assistant Collector, Model Customs Collectorate, Quetta.

28. Sajid Khan (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector (Prob), Model Customs Collectorate of Preventive, Peshawar from the post of Assistant Collector (Prob), Model Customs Collectorate, Peshawar.

29. Rana Umair Arshad (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector (Prob), Model Customs Collectorate of Preventive, Quetta from the post of Assistant Collector (Prob), Model Customs Collectorate, Quetta.

30. Nadeem Ahmed (SuperintendentC/BS-17) on promotion has been transferred and posted as Assistant Director, Directorate General of Customs Valuation, Karachi from the post of Superintendent, Large Taxpayers Unit, Karachi.

31. Mumtaz Khan (SuperintendentC/BS-17) on promotion has been transferred and posted as Assistant Director, Directorate of Intelligence & Investigation, FBR, Peshawar from the post of Superintendent, Model Customs Collectorate, Peshawar.

32. Muhammad Nazarul Hassan (SuperintendentC/BS-17) on promotion has been transferred and posted as Assistant Director, Directorate of Input Output Coefficient Organization (South), Karachi from the post of Superintendent, Large Taxpayers Unit, Karachi.

33. Muhammad Zahid Khan (SuperintendentC/BS-17) on promotion Assistant Director, Directorate of Transit Trade, Peshawar from the post of Superintendent, Model Customs Collectorate, Peshawar.

34. Muhammad Javed Mehmood (SuperintendentC/BS-17) on promotion has been transferred and posted as Assistant Director, Directorate of IPR Enforcement (Central), Lahore from the post of Superintendent, Model Customs Collectorate, Faisalabad.

35. Muzaffar Ali Rizvi (PAC/BS-17) on promotion has been transferred and posted as Assistant Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi from the post of Principal Appraiser, Model Customs Collectorate of Appraisement (East), Karachi.

36. Israr Hussain (PAC/BS-17) on promotion has been transferred and posted as Assistant Collector, Model Customs Collectorate, Islamabad from the post of Principal Appraiser, Model Customs Collectorate, Islamabad.

37. Syed Shahid Hussain Rizvi (PAC/BS-17) on promotion has been transferred and posted as Assistant Director, Directorate General of Transit Trade, Karachi from the post of Principal Appraiser, Model Customs Collectorate, Gwadar.

38. Riaz Hussain Bhatti (PAC/BS-17) on promotion has been transferred and posted as Assistant Director, Directorate of Post Clearance Audit, Lahore from the post of Principal Appraiser, Model Customs Collectorate of Appraisement, Lahore.

39. Saleem Yosuf (PAC/BS-17) on promotion has been transferred and posted as Assistant Collector, Model Customs Collectorate of Exports, Custom House, Karachi from the post of Principal Appraiser, Directorate of Intelligence & Investigation, FBR, Karachi.

40. Ishtiaq Ahmed (PAC/BS-17) on promotion has been transferred and posted as Assistant Director, Directorate of IPR Enforcement (North), Islamabad from the post of Principal Appraiser, Model Customs Collectorate, Islamabad.

41. Muhammad Saleem (SPSC/BS-17) on promotion has been transferred and posted as Assistant Director, Directorate of Internal Audit (Customs), Karachi from the post of SPS, Model Customs Collectorate of Preventive, Karachi.

The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

Related Stories
FBR transfers customs officers of BS-18-19

April 12, 2019
FBR promotes officers to BS-16 superintendent

ISLAMABAD: Federal Board of Revenue (FBR) on Friday promoted assistant tax officials of BS-16 to the post of superintendent (BS-16) with immediate effect.

Following officers have been promoted:

01. Ms. Parveen Rafique

02. Najam Zafar

03. Muhammad Sarwat Hussain Qadri

04. Ms. Asia Iqbal

05. Syed Hamid Baseer

The FBR said that the officers would be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment would be deemed to be held until further orders.

April 12, 2019
Main features of Amnesty Scheme 2019

KARACHI: The government may launch a new tax amnesty scheme 2019 on April 15 for allowing undeclared local and domestic assets to become part of documented economy.

The main features of the draft amnesty scheme, included:

– Benami assets

– Sales Tax and Federal Excise Duty

– mandatory return filing

– allowing balance sheet revision

– litigation cases would also be allowed

– amnesty to banking transaction will require cash to be put in bank accounts

– there will be limit on gold declaration

– Bank credits in last five years included

– the amnesty will have higher valuation

– this amnesty will have higher rates.

The draft of amnesty scheme also explained persons qualified:

According to it all companies and individuals except: holders of public office since January 01, 2000, their spouses, children, brothers and sister or lineal ascendant or descendant.

Proceeds derived for commission of a criminal offence would be excluded for amnesty.

Cases pending before a court of law would be allowed with the exception of older pending litigation.

April 12, 2019
Sales Tax Act 1990: recovery of short payment without notice

KARACHI: The sales tax law authorized tax authorities to recover short paid amount without issuing notice.

According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 11A of the Act explained the authority of tax officials in recovery of short paid amount.

Section 11A: Short paid amounts recoverable without notice

Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder:

Provided that no penalty under Section 33 of this Act shall be imposed unless a show cause notice is given to such person.

Section 11B: Assessment giving effect to an order

Sub-Section (1): Except where sub-section (2) applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person, the Commissioner or an officer of Inland Revenue empowered in this behalf shall issue the order within one year from the end of the financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.

Sub-Section (2): Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is served with the order:

Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred against the order passed by Appellate Tribunal or a High Court.

April 12, 2019
Tax rates for proposed Amnesty Scheme 2019

KARACHI: Persons may be allowed to avail tax amnesty at one percent for undeclared banking transactions of past five years.

According to draft of Tax Amnesty Scheme 2019, credit entries in a person’s own bank account is allowed at one percent of the total credit entries from July 01, 2013 till June 30, 2018 or 10 percent of peak credit entries during the said period whichever is higher.

A tax rate of 10 percent has been proposed for declaration of benami assets.

For foreign liquid assets repatriated into Pakistan the tax rate shall apply at five percent.

The government has also proposed to allow transactions into benami bank accounts at only two percent of the total credit entries from January 01, 2017 till April 15, 2019 or 10 percent of peak credit entries during the said period whichever is higher.

Any other assets have been allowed to avail amnesty at 7.5 percent of the prescribed value.

The valuation has been proposed for undisclosed income and assets for the purpose of Section 5(2) of Income Tax Ordinance, 2001.

For undisclosed bank accounts, the credit entries from July 01m 2013 till June 30, 2018.

For undeclared open plots and land, flat the valuation shall be cost of acquisition or FBR values on April 15, 2019, whichever is higher.

For undisclosed superstructure, the valuation has been proposed at Rs1,500 per square feet.

For undisclosed motor vehicles, the valuation shall be costs incurred till original registration.

For undisclosed gold, the valuation shall be Rs5,000 per gram.

April 12, 2019
FBR sets up complaint cell against corrupt officials

ISLAMABAD: Federal Board of Revenue (FBR) has established a dedicated cell to facilitate taxpayers in filing complaints against corrupt practices of officials of Inland Revenue and Pakistan Customs.

The FBR on Wednesday said that it had established Integrity Management Cell (IMC) to facilitate general public / taxpayers for filing of complaints against corrupt practices of officers/officials of FBR.

The FBR said that following modes may be adopted to lodge complaints:

— By directly calling helpline at 111-772-772 for information.

— By visiting field offices of Inland Revenue & Pakistan Customs.

— By sending an email at [email protected]

— By filing complaint on FBR online portal.

— By submitting either a hard copy of the complaint through post or meeting in person with Secretary (IMC), FBR (HQ), Constitution Avenue, Islamabad.

April 11, 2019
FBR asks financial institutions to provide account holders details for automatic exchange of information

KARACHI: Federal Board of Revenue (FBR) has asked financial institutions to provide details of their account holders by May 31, 2019 for the purpose of automatic exchange of information with OECD member countries.

In a notice sent to Pakistan Stock Exchange (PSX), the FBR said that as per section 165(B) and 107(1) of Income Tax Ordinance, 2001 and other applicable domestic laws and rules related to Automatic Exchange of Information (AEOI), the Reporting Financial Institutions are required to obtain and maintain certain information about their account holders in accordance with the CRS Rules notified by FBR through SRO166(I)/2017 on March 15, 2019, which has to be reported to FBR on an annual basis on May 31 of every year.

The FBR said that reports from RFIs are due on May 31, 2019. In this regard the FBR asked the stock exchange to direct the RFIs that report to or are under the control of the stock market to ensure timely compliance as per law and rules.

The FBR warned that in case of failure the RFIs would be penalized under Section 182 of the Income Tax Ordinance, 2001.

April 11, 2019