FBR seeks data from 17 foreign countries to fight tax evasion

The Federal Board of Revenue (FBR) has made notable advancements in combating tax evasion, having processed 30 requests from international tax jurisdictions under the information exchange framework during the fiscal year 2023-24.

To bolster domestic tax compliance, the FBR also sought data from various countries on 17 occasions.

A recent report from the FBR underscored its dedication to international cooperation in the exchange of tax-related information. The findings highlighted the board’s growing emphasis on utilizing global networks to enhance compliance within Pakistan.

The report revealed that while the FBR processed 30 inward exchange of information (EOI) requests, it also dispatched 17 outward EOI requests to international tax jurisdictions. This comprehensive strategy is designed to promote transparency and accountability in tax reporting.

In alignment with international standards, the FBR is implementing a country-by-country reporting system aimed at ensuring that multinational corporations accurately disclose their financial activities across various jurisdictions.

This initiative addresses critical challenges such as profit shifting and base erosion, which are essential for enhancing corporate tax compliance.

Furthermore, the data indicated that the country-by-country reporting has led to 41 records of “outward transmission of local filing.” Additionally, an impressive total of 1,426,252 records were shared during the outward transmission of local transactions, along with 579,748 records related to inward assignments of reciprocal filing.

The FBR also highlighted its progress in establishing systems for automatic information exchange in accordance with OECD guidelines. This advancement has enabled the board to access information regarding Pakistani taxpayers with assets abroad, significantly supporting efforts to mitigate tax evasion.