Banks to issue letters to account holders tax amnesty scheme 2019
RECORD NOTE OF THE MEETING OF CHAIRMAN FBR WITH CHIEF FINANCIAL OFFICERS (CFOs) OF THE BANKS ON 30.5.2019 AT FBR
HQ, ISLAMABAD
Meeting on the subject was held at 4.30 p.m. in conference hall at FBR headquarters and was chaired by Chairman FBR. The meeting was attended by Member IR-Operations, Member IRPolicy, SA to Chairman and Chief IR-operations. CFOs of all the banks have attended the meeting.
The list of attendees is attached as annex-A. Following issues were discussed and the decisions were taken accordingly:
The chairman FBR welcomed the participants. He emphasized that in the backdrop of FATF requirements it is imperative that banks must comply with the Know Your Customer (KYC) requirements and help their customers.
The Chairman had highlighted the data requirements of FBR with the representatives of the banks and directed the banks to provide the data of withholding taxes in the first stage.
Some representatives of the banks asked about the mechanism of handling of data. To this query, the Chairman assured that FBR maintains confidentiality of highest level in handling and managing such information and data.
Tax Amnesty Scheme 2019
After detailed discussions, it was decided that in first phase the banks will provide the data of withholding taxes w.e.f 01.01.2018 onwards with CNICs of the withholdees to FBR by 17.06.2019. In this regard, data of all the withholding sections will be provided by the banks and the representatives of the banks agreed with the time lines.
The other issue discussed was the Benami laws and the menace of banami accounts. Chairman FBR sensitized the participants about the emerging scenario in the wake of Benami Transaction (Prohibition) Act, 2017 and emphasized that such business cannot continue as usual and we have to act fast in accordance with the needs of the law and our country.
The Chairman urged the banks to act fast for resolving the issue without causing any problem/panic/disturbance for their customers.
Rates of Tax Amnesty Scheme 2019
It was also highlighted that the Assets Declaration Scheme 2019 introduced is a window of opportunity through which can address this problem in an effective way.
Different options were discussed among the participants and in the end it was agreed that the banks will write letters to their account holders having balance of Rs. 500,000/- and above as on 30.04.2019 and guide them about availing amnesty if the accounts are not declared by the customers. The draft of the letter will be shared by the FBR to the Banks.
Tax Amnesty Scheme for Non-residents Pakistanis
Meeting ended with a note of thanks by and to the Chairman FBR.
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Dear Mr./Ms./Mrs./Messrs
We are thankful for the business relationship you are maintaining with us through your bank account.
You must be aware of the fact that national and international compliance requirements are increasingly focusing on the monetary transactions carried on through banking and other formal and informal channels.
Such requirements include income and assets declarations with the government as well as compliance with standards related to anti-money laundering requirements.
Benami Transactions Prohibition Act, 2017 (that has become fully operational since February, 2019) has further necessitated a more watchful regulatory environment.
In order to regularize our otherwise undocumented economy, the Government of Pakistan has recently announced an Assets Declaration Ordinance, 2019 that provides a simple and easier manner of declaration of undisclosed assets/sales/expenses including amounts kept in bank accounts.
We will strongly recommend that you may go through that scheme available at www.fbr.gov.pk. However, if you think that your bank account and its transactions are declared with tax authorities or are otherwise not liable to be declared to the tax authorities (as per law), please ignore this letter.
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