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Saturday Jan 04 2020

New tax law allows FBR to share asset declarations with FMU: report

Photo: File

KARACHI: The Federal Board of Revenue (FBR) now has the legal permission to share taxpayers’ asset declaration information with the finance ministry’s financial monitoring unit (FMU), sources told The News on Friday.

FBR sources shared with the English daily that the board was previously barred from disclosing taxpayers’ details to the authorities, except on certain conditions. However, a presidential ordinance was promulgated with effect from January 1, 2020 to allow information-sharing with the FMU, it adds.

Also read: FBR warns sales tax evaders of penalties

Previously, under Section 216 of Income Tax Ordinance 2001, FBR officials were barred from sharing information of taxpayers, including wealth statement, returns or accounts, any revealed evidence, affidavit or deposition made in the course of any proceeding, and any record of assessment proceeding related to tax recovery. 

With the elimination of the legal lacuna, the tax officials can now share such information with the FMU.

The FMU was established to fight against money laundering and terror financing. The recent measures are taken to check money laundering and counter terrorist financing.

The amendment has been made through the latest presidential order to enable information-sharing from FBR to FMU to let the unit perform its functions as laid down in the Anti-Money Laundering Act, 2010 and enable compliance with FATF regulations, the FBR said.