ISLAMABAD: The Federal Board of Revenue (FBR) has given the country’s banks and brokerages 15 days to provide financial data of foreign customers under the Organisation of Economic Cooperation and Development (OECD).
The official sources said that the FBR directed financial institutions, including banks and stock brokers, to submit declaration about accounts maintained by foreigners till the end of the current month. They were asked to declare high-value accounts. A high value account means an individual maintaining above one million dollars account, the sources added.
FBR has already issued a list of 456 reporting financial institutions under common reporting standards for automatic exchange of information under the OECD convention.
On September 14, 2016, Pakistan became the 104th economy to join the most powerful multilateral instrument against offshore tax evasion and avoidance. Reporting companies include asset managers, insurance agencies, stock brokers and banks.
Reporting financial institutions are required to file a nil return to indicate that it does not maintain any reportable account during the calendar year or other reporting period under the OECD treaty of tax evasion.
“A financial institution is required to file a return to the effect that it does not have any reportable account(s) during the relevant reporting period by May 31,” an FBR official said.
The official said an important meeting was convened at the FBR Headquarters in the first week of June to discuss the methodology of scrutiny under exchange of information.
The official said FBR would get comprehensive details of non-resident individuals maintaining accounts in Pakistan by September 30 for subsequent exchange of information.
