Registration of specialised trusts: FBR has barred field formations from issuing NOCs

ISLAMABAD: The Federal Board of Revenue (FBR) has barred its field formations from issuance of No Objection Certificates (NOCs) in respect of specialised trusts (Employees Provident, Gratuity/Super-annuation Funds).

According to the FBR’s instructions issued to the field formations on Wednesday, for registration of a specialised trust under Punjab Trust Act, 2020 or other Trust Acts enforced in the Islamabad Capital Territory and other provinces, the trustee shall provide No Objection Certificate (NOC) from the concerned regulator containing prescribed information regarding registration of a specialised trust.

In this regard, the FBR has further directed to communicate that a “Regulator” as mention in Section 3 of the Punjab Trusts Act, 2020, means a regulator as defined in clause (I) of Schedule IV of the Nui-Money Laundering Act, 2010.

In context of foregoing, it is also further communicated that at present the FBR is not authorized by law/not notified as a “Regulator” in any ancillary law to issue NOCs in the subject matter, therefore, field formations are hereby directed to discontinue issuance of NOCs in respect of specialised trusts (e.g.

Employees Provident, Gratuity/Super-annuation Funds) and the applicants/taxpayers (pending or prospective) may be advised to approach federal government through Finance Division for the subject NOCs, the FBR added.

Copyright Business Recorder, 2024