Newly-opened, redesignated business accounts: Banks required to inform FBR about particulars

ISLAMABAD: Banks will have to directly inform the Federal Board of Revenue (FBR) of the particulars of newly-opened and redesignated business bank accounts under the proposed Finance (Supplementary) Bill, 2021.

According to the proposed amendment to the Section 165A of the Income Tax Ordinance, 2001, a list of persons containing particulars of their business accounts opened or redesignated during each preceding calendar month would be provided by the banks to the FBR.

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In this connection, clause 5(4)(b) of the Finance (Supplementary) Bill, 2021 seeks to add clause (f) in sub-section (1) of section 165A to allow banks to provide a list of newly-opened and re-designated business accounts.

A tax expert said that additional documentation submission requirement for the banks has been provided under the amended section (165A) of the Income Tax Ordinance, 2001. The Finance (Supplementary) Bill, 2021 has proposed to add a new clause (f) through, which banks shall have to make arrangements to provide a “list of persons containing particulars of their business accounts opened or redesignated during each preceding calendar month.”

The primary purpose of the aforesaid proposed amendment seems to be the verification of the details of the taxpayers, in comparison with what details the taxpayer has furnished in his profile, the tax expert added.

Copyright Business Recorder, 2022