FBR Will Not Alert Taxpayers Of Foreign Requests For Information Of Their Assets

The Federal Board Of Revenue has decided not to inform the concerned taxpayer about the request received from foreign tax jurisdiction. To search for information on properties, bank accounts, and beneficial owners of accounts under the exchange of information laws.
The FBR has created the Exchange of Information on Request (EOIR) manual to guide the internal process. The procedures to be followed by offices of Inland Revenue concerning the Exchange of Information in Pakistan. Which was made available through the income tax circular number 19 of 2023.
Though, the FBR has taken out the manual for Exchange of Info (Annex-I) to guide officers of Inland Revenue. Undoubtedly, exchanging information is a crucial element of an international corporation. Moreover, it is also vital for ensuring that states can enforce their tax laws and the fair distribution of taxing rights among States.

The FBR has clearly mentioned the rules and regulations and provides guidance on carrying out the queries related to the Exchange of Information on Request (EOIR). In addition, spontaneous exchange of information in order to ensure that information exchanges are carried out effectively and in accordance with generally accepted international standards.

Moreover, it has also been decided that the taxpayers, in respect of whom the application is received from a foreign jurisdiction, will not be informed that the Directorate General of International Taxes, FBR, has received a request to exchange information. Instead of some instances where FBR is required by the domestic law of Pakistan or they are required by Judicial authorities.

Moreover, the taxpayer should not be informed when the competent requesting authority has specified that they should not be reported, even if an exception may apply.
On the other hand, when a taxpayer has the necessary information. The person must be asked to provide it, and the letter must only include the bare minimum of details required for the taxpayer to respond to the request.
Moreover, the EOI request from the foreign competent authority shall not be shared with the taxpayer in any situation.
Confidential information obtained from a treaty partner may apply under specific conditions. It will be disclosed to individuals outside the tax administration, such as the taxpayer.
The Directorate General of Intelligence and Investigation Inland Revenue for purposes invoking the Anti-money laundering act of 2010 and in open court proceedings.

Read more:

FBR Just Launched a Currency Declaration App for International Travelers 

FBR Imposes 50% Customs Duty On Mild Hybrid Cars