ISLAMABAD: The Federal Board of Revenue (FBR) has empowered the Commissioners, Inland Revenue, Automatic Exchange of Information (AEOI) Zones Karachi, Lahore, and Islamabad to have jurisdiction over financial institutions to obtain information about the non-resident persons (NRPs). In this connection, the FBR has issued a notification Monday.

The FBR has already empowered Commissioners Automatic Exchange of Information (AEOI) Zones to seek details of financial accounts and sources of investments, etc, of reported persons under Multilateral Competent Authority Agreements with other tax jurisdictions or from OECD (Organization of Economic Cooperation and Development) member countries.

According to the notification, the Commissioner Inland Revenue shall exercise the powers and perform functions, as conferred under section 108, 165B of the Income Tax Ordinance and section 182 (1A), (7), (17), (25), (26), (27),and (28) of the Income Tax Ordinance 2001.

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The Commissioners can exercise powers under section 108 (transactions between associates) of the Income Tax Ordinance 2001. The Commissioner may, in respect of any transaction between persons who are associates, distribute, apportion or allocate income, deductions or tax credits between the persons as is necessary to reflect the income that the persons would have realised in an arm’s length transaction.

The Commissioner Inland Revenue shall exercise the powers under section 165B (furnishing of information by financial institutions including banks). Every financial institution shall make arrangements to provide information regarding non-resident [or any other reportable] persons to the Board in the prescribed form and manner for the purpose of automatic exchange of information under bilateral agreement or multilateral convention.

Copyright Business Recorder, 2022