The Federal Board of Revenue (FBR) has made significant strides in tackling tax evasion as it processed 30 requests from international tax jurisdictions under the exchange of information arrangement during the fiscal year 2023-24. In a bid to enhance domestic tax compliance, the FBR sought data in 17 instances from various countries.
A recent report from the FBR highlighted its commitment to international collaboration in the exchange of tax-related information. The data underscored the board’s increasing focus on leveraging international networks to strengthen compliance within Pakistan.
The report indicated that while the FBR processed 30 inward exchange of information (EOI) requests, it also sent out 17 outward EOI requests to global tax jurisdictions. This dual approach aims to ensure transparency and accountability in tax reporting.
In line with international standards, the FBR is implementing a country-by-country reporting system designed to ensure that multinational corporations accurately report their financial activities across different jurisdictions. This initiative addresses critical issues such as profit shifting and base erosion, which are pivotal for improving corporate tax compliance.
The data further revealed that the country-by-country reporting has resulted in 41 records of “outward transmission of local filing.” Additionally, an impressive 1,426,252 records were shared during the outward transmission of local transactions, along with 579,748 records concerning inward assignments of reciprocal filing.
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The FBR also emphasized its progress in establishing systems for automatic information exchange in accordance with OECD guidelines. This development enabled the board to access information on Pakistani taxpayers holding assets abroad, significantly aiding efforts to curb tax evasion and promote global tax compliance.
