SECP asks insurance cos to disclose deducted tax in accounts’ books

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has asked the insurance companies to give disclosure of deducted withholding tax or advance tax in their respective books of accounts.

In this regard, the SECP has issued procedure for the insurance sector for documenting data of advance or withholding tax on shareholder fund of a life insurer.

The SECP has proposed a new regulation in the Insurance Accounting Regulations, 2017 here on Monday.

According to the proposed regulations, the advance or withholding tax attributable to the shareholder fund of a life insurer shall be recorded in the books of the shareholders’ fund and advance or withholding tax attributable to a statutory fund of a life insurer shall be recorded in the books of the respective statutory fund.

It shall be permissible for the shareholders’ fund of the life insurer to purchase the full amount of adjustable advance or withholding tax recorded in the books of the statutory funds against cash or cash equivalent. The shareholders’ fund shall, however, mandatorily purchase advance or withholding tax related to the statutory funds, which is adjustable within a period of one year, in cash or cash equivalent, SECP added.

Copyright Business Recorder, 2023