ISLAMABAD: Federal Board of Revenue (FBR) has asked stock brokers to provide information of foreign investors for Automatic Exchange of Information (AEOI).
Pakistan Stock Exchange (PSX) on Tuesday referring to the FBR notice related to filing of Common Reporting Standards (CRS) Reports 2020.
The FBR said that the Reporting Financial Institutions (RFIs) are required to obtain, maintain and file CRS information in accordance with Section 165B and 107(1) of Income Tax Ordinance, 2001 and the Common Reporting Standards Rules contained in Income Tax Rules, 2002.
The said information has to be reported to FBR on annual basis on May 31 through the AEOI portal. The reports from RFIs are due on May 31, 2020.
The FBR asked the stock exchange to direct the RFIs to ensure timely compliance as per law and rules, failing which the RFIs shall be penalized under Section 182 of the Income Tax Ordinance, 2001.
Under Section 165B of Income Tax Ordinance, 2001 furnishing of information by financial institutions, including banks, is mandatory.
(1) Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act,1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of1947) and any regulations made under the State Bank of Pakistan Act,1956 (XXXIII of 1956) on the subject, every financial institution shall make arrangements to provide information regarding non-resident or any other reportable persons to the FBR in the prescribed form and manner for the purpose of automatic exchange of information under bilateral agreement or multilateral convention.
(2) All information received under this section shall be used only for tax and related purposes and kept confidential.
(3) For the purpose of this section, the terms “reportable person” and “financial institution” shall have the meaning as provided in Chapter XIIA of the Income Tax Rules, 2002.