‘Un-documented large-scale business transactions to be captured with help of banks’

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said that the un-documented large-scale business transactions would be captured with the help of commercial banks in the country.

While reviewing proposed Section 175AA (Exchange of banking and tax information related to high risk persons) of Finance Bill (2025-26), the FBR chairman requested the National Assembly Standing Committee on Finance to bound the commercial banks to provide necessary information to the FBR.

In this regard, threshold of turnover would be prescribed for the banks.

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The FBR will only provide computerised national identity card numbers (CNICs) of the concerned accounts holders seeking transactions details, but would not share details of income tax returns of the taxpayers. The red flags would be raised only in cases of un-reported high transactions and batches of CNICs would be shared with the banks.

“The State Bank of Pakistan would provide support to the FBR,” the FBR chairman requested to add in the proposed Section 175AA (Exchange of banking and tax information related to high risk persons) of Income Tax Ordinance.

Committee members questioned the sub-clause of Section 175AA, which said, “(a) The Board may share information of turnover, income including taxable income, for one or more tax years, identification data including bank account numbers declared in the income tax return, wealth statement, financial statement or in any other document to the Board, in respect of persons or classes of persons, along with data based algorithms, as may be prescribed, with scheduled banks in Pakistan.”

The FBR chairman said that the FBR is ready to omit or revise the said clause so that only CNICs be communicated to the banks.

The FBR chairman further suggested that a “central repository of banks” should be established for reporting of transactions to the FBR so that people should not split transactions or open multiple accounts to avoid reporting.

Copyright Business Recorder, 2025