The Exchange Companies Association of Pakistan (ECAP) Tuesday assured the tax authorities of the Federal Board of Revenue (FBR) that record/details of their suspected customers would be provided to the FBR in cases of inquiry. The ECAP took up three major issues before the FBR, including applicability of the Federal Excise Duty on the exchange companies, turnover tax, and provision of records of their clients to the FBR.
In this regard, a delegation of the ECAP met the tax authorities at the FBR House Tuesday. At the conclusion of the meeting, ECAP Chairperson Malik Bostan told Business Recorder that the FAP had assured the FBR for providing records to the tax department in cases of inquiry.
If any of their customers is suspected, the exchange companies are ready to provide their details to the inquiry officials of the FBR. Money exchange companies are required to maintain record of transactions above a specific threshold and also keep a copy of the identity card or passport of the person involved in the transactions. The financial monitoring unit (FMU) of the State Bank of Pakistan is already generating reports on suspicious transactions.
They would also fully cooperate with the FBR. Secondly, the FBR has assured the association that the FBR has taken notice of cases of charging the FED on the exchange companies. In this regard, the FBR will see the legal status of such notices served to the exchange companies.
According to the chairman ECAP, the exchange companies are exempted from the FED and such notices would be withdrawn. Thirdly, the FBR understands the applicability of the turnover tax on such exchange companies is not appropriate, Malik Bostan maintained.
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