FBR Obliged to Share Large Taxpayers’ Data with IMF

FBR Obliged to Share Large Taxpayers’ Data with IMF

Karachi, July 19, 2023 – The Federal Board of Revenue (FBR) in Pakistan is mandated to share data on the total number of large taxpayers in the country with the International Monetary Fund (IMF).

Details of Tax Collection and Taxpayers to be Provided on Quarterly Basis

This requirement is outlined in the country report on Pakistan issued by the IMF following the $3 billion Stand-By Agreement (SBA).

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As per the report released on July 18, 2023, the FBR is obligated to provide certain details of tax collection and taxpayers to the IMF. The data to be shared includes the number of taxpayers and the amount of taxes managed by the large taxpayer offices (LTOs), on a quarterly basis.

The FBR is expected to provide separate information on the total revenue collected by the tax administration and customs administration, including revenue generated from individual taxes and social contributions. Additionally, the FBR will share details of tax arrears categorized by type of tax on a monthly basis.

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The IMF will receive information on all tax refund claims that are in arrears, with the FBR providing an itemized breakdown by tax category (GST, income tax, customs duties, etc.). Detailed data on automated Goods and Services Tax (GST) refunds will also be provided, including outstanding tax credits for all types of tax revenues, the share of total refunds processed automatically, the total value of automated and automatic refunds and offsets, and the average waiting time (in days) to receive a refund.

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Import data will also be shared, encompassing the total value of recorded imports, the total value of duty-paid recorded imports, the number of total transactions involving recorded imports, and the number of total transactions involving non-duty free recorded imports.

Regarding taxpayers’ audits, the FBR will disclose the percentage of selected companies audited and the identified revenue from these audits.

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These data-sharing requirements aim to facilitate transparency and enhance the understanding of Pakistan’s tax system and revenue collection practices, in line with the terms of the Stand-By Agreement with the IMF.

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