FBR Sought Offshore Accounts Related Data from Other Countries in 17 Cases in 2023-24

The Federal Board of Revenue (FBR) has processed 30 requests received from international tax jurisdictions under the exchange of information arrangement and sought data in only 17 cases from different countries pertaining to the offshore accounts during 2023-24.  The FBR data (2023-24) revealed that the efforts have been made under international cooperation to exchange tax-related information with other countries during last fiscal year. These exchanges are crucial for combating tax evasion, especially for individuals and corporations with offshore accounts. The data underscores FBR’s growing focus on leveraging international networks to strengthen domestic tax compliance.  Data showed that the number of Inward EOI (exchange of information) requests processed stood at 30 whereas the number of outward EOIRs (exchange of information requests) sent to other global tax jurisdictions totaled at 17.  Under the country-by-country reporting system, the initiative, aligned with international transparency standards, aims to ensure multinational corporations report their financial activities accurately across jurisdictions. The data reflects FBR’s efforts to address profit shifting and base erosion, critical for improving corporate tax compliance.  The data of country-by-country reports revealed 41 records of “outward transmission of local filing”; 1,426,252 records were shared during outward transmission of local transactions and 579,748 records for inward Assignment of reciprocal filing.  The FBR highlighted the progress in implementing systems for automatic information exchange under OECD guidelines. This step enables FBR to access data on Pakistan’s taxpayers holding assets abroad, helping curb tax evasion and fostering global tax compliance, FBR added.