FBR establishes directorate for taking action against undeclared offshore assets

ISLAMABAD: Federal Board of Revenue (FBR) has established Directorate General of International Tax Operations to initiate legal proceedings in undeclared offshore assets by Pakistanis.

The FBR issued notification to set up the directorate on March 29, 2019. The directorate will have head office in Islamabad and its subordinate offices will be at Lahore, Peshawar, Multan, Karachi, Quetta.

The directorate was introduced through Finance Supplementary (Second Amendment) Act, 2019 by inserting Section 230E to Income Tax Ordinance, 2001.

The functions and powers of the directorate general of international tax operations would be:

a. receive and send information from other jurisdictions under spontaneous, automatic and on demand exchange of information under exchange of information agreements.

b. Levy and recover tax by passing an assessment order under section 123(1A) in case of undeclared offshore assets and incomes.

c. Receive, transmit and exchange country by country reports of the jurisdictions that are parties to international agreements with Pakistan.

d. Conduct transfer pricing audit in cases selected for such audit by the directorate genera of international tax operations.

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