FBR asks banks to pursue account holders to avail scheme

The Federal Board of Revenue (FBR) has requested the banks to pursue their customers/account holders to avail the Assets Declaration Scheme-2019 in cases where the accountholders have balance of Rs 500,000 as on April 30, 2019 and the account has not been declared with the tax department. Sources said that the issue was discussed during the last meeting of the Chairman FBR with the Chief Financial Officers (CFOs) of all the banks at the FBR House.
During the meeting, the issue of the Benami laws and the menace of banami accounts was discussed between the banks and the FBR. The Chairman FBR sensitized the participants about the emerging scenario in the wake of Benami Transaction (prohibition) Act, 2017 and emphasized that such business cannot continue as usual and we have to act fast in accordance with the needs of the law and our country.
The FBR Chairman urged the banks to act fast for resolving the issue without causing any problem/panic/ disturbance for their customers. It was also highlighted that the Assets Declaration Scheme 2019 introduced is a window of opportunity through which can address this problem in an effective way. Different options were discussed among the participants.
It was discussed that the banks may write letters to their account holders having balance of Rs 500,000/- and above as on April 30, 2019 and guide them about availing amnesty if the accounts are not declared by the customers. This request was made by the FBR to the banks.
The chairman FBR emphasized that in the backdrop of the Financial Action Task Force (FATF) requirements it is imperative that banks must comply with the Know Your Customer (KYC) requirements and help their customers. The FBR Chairman had highlighted the data requirements of FBR with the representatives of the banks and directed the banks to provide the data of withholding taxes in the first stage. Some representatives of the banks asked about the mechanism of handling of data. To this query, the Chairman assured that FBR maintains confidentiality of the highest level in handling and managing such information and data. After detailed discussions, it was decided that in first phase the banks will provide the data of withholding taxes with effect from January 1, 2018 onwards with CNICs of the withholdees to FBR by June 17, 2019. In this regard, data of all the withholding sections will be provided by the banks and the representatives of the banks agreed with the time lines.