Karachi, March 14, 2024 – The Karachi Tax Bar Association (KTBA) has raised concerns over the ambiguity surrounding the submission of forms related to the record of beneficial owners, urging the Federal Board of Revenue (FBR) to provide clarity on the matter.
In a letter addressed to FBR Chairman, Malik Amjad Zubair Tiwana, KTBA President Syed Zafar Ahmed emphasized amendments introduced through SRO 1117 dated August 28, 2023. This amendment notified the prescribed form for the submission of the ‘record of beneficial owners’ under section 181E of the Income Tax Ordinance, 2001.
According to sub-rule 3 of Rule 83A of the Income Tax Rules, 2002, companies and Associations of Persons (AOPs) were mandated to electronically file the prescribed form BOF-01 of Part IXA of the First Schedule to the Rules by December 31, 2023.
However, the form was only made available on the IRIS web portal of the FBR on February 21, 2024, well past the due date of December 31, 2023, set by the FBR itself for filing. KTBA had previously requested the FBR, in a letter dated November 15, 2023, to upload the same form.
KTBA President urged the FBR chairman to issue necessary clarification on whether the submission of the record of beneficial owner is now required for the next year ending June 2024, given that the due date for June 2023 has already passed and the form was not provided by the FBR. Alternatively, is it still required to be filed for the year-end of June 2023?
Furthermore, KTBA asked the FBR chairman that if the submission is still mandated for June 2023, the FBR should communicate a new date for its filing. Emphasis was placed on ensuring that the new due date should be reasonable to allow taxpayers adequate time to prepare and submit information, avoiding any undue burden on them.
The tax bar also expressed its intention to scrutinize the details of the provided tab of beneficial owner Form on the IRIS portal and pledged to update the FBR where any material insights would need to be brought to their attention.
The Karachi Tax Bar Association remains committed to facilitating a transparent and compliant tax regime and looks forward to prompt clarification from the Federal Board of Revenue regarding the submission of beneficial owner records.
The uncertainty surrounding the submission of beneficial owner records has caused confusion among taxpayers and businesses alike. Without clear guidelines from the FBR, there is a risk of non-compliance and potential penalties for those unable to adhere to the ambiguous deadlines.
KTBA’s proactive approach in seeking clarification reflects the commitment of tax professionals to uphold the integrity of tax regulations while ensuring that taxpayers are not unduly burdened by administrative hurdles.
As the FBR deliberates on KTBA’s request for clarification, taxpayers and businesses await a definitive response that will provide much-needed clarity and direction in meeting their obligations under the Income Tax Ordinance.
In the interest of a transparent and efficient tax system, it is imperative for the FBR to address the concerns raised by KTBA promptly and provide clear guidance on the submission of beneficial owner records, thereby fostering compliance and confidence in the tax regime.
