It was agreed that banks would begin providing information regarding cash withdrawals, deposits, credit card payments and debt gains to FBR u/s 165 and 165A of the income tax regulation, developed in 2001 by FBR`s IT solution, said the FBR press release release published here on Thursday. Information requested by banks includes bank statement, credit card account statement, cash payment account, profit from the debt bill, and information about all information or data requested by the banks` board of directors. CNIC, NICOP, passport number, NTN, name, account title, resident/non-resident status, address, telephone number, account opening date, account number (IBAN), amount deposited in one month or amount of cash withdrawal for one month, amount of tax deducted and occupation/profession of account holder. In addition, the RBF has also requested information from account holders who withdraw 1 million million euros or more each month. These account holders must also make gains on debt securities. The Board of Directors also invited banks to appoint an executive within 30 days of the amended legislation coming into force. Otherwise, the president or senior official of the banking company would be considered the bank employee who would be responsible for providing relevant information to the RBF. The spokesman said the solution would help banks provide immediately relevant information to the RBF. Banks are their main source of indirect tax collection and, with this act, they are again trying to gain an easy playing field. But it will seriously damage the banking sector. It was agreed that banks would provide FBR with information on cash withdrawal, deposits, credit card payments and debt benefit.
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday asked banks to establish five-year records on bank account holders, in line with proposed changes to the 2010 bank reporting rules. The RBF had introduced a new chapter, that is, the reporting obligations of banks in the income tax rules that will be respected by the banks. The RBF has also asked banks to provide the following information from account holders in the above categories: according to the draft regulation, gains on debt securities and information provided by account holders who have withdrawn EUR 1 million or more in a month are also shared on mandatory forms with the RBF. In accordance with the new banking rules, information to be provided under Section 165A of the Income Tax Regulation is provided by the reporting bank company in the manner specified in the account holder`s deposit settlement, credit card payment statement, cash withdrawal statement and the benefit of the debt return. As part of the due diligence record-keeping procedures, the RBF has directed reporting financial institutions to retain the measures taken and all evidence used to implement due diligence procedures and measures, in order to obtain these records for at least five years after the end of the period during which the census institution must disclose the information necessary for notification. If the bank employee is not appointed within the time frame set out in the draft regulation, the president or chief executive officer of the reporting bank is considered a bank employee. Each bank official submits to the Board of Directors, within three months of the end of the previous calendar year, an annual profit on the debt covered on Form D for the calendar year immediately preceding. Each bank provides the Board of Directors with all information and documents for disclosure within the time set by the Board of Directors. ISLAMABAD: The banks have agreed to provide the Federal Revenue Council (FBR) from 18 September 2020 with information on cash withdrawals, deposits, credit card payments and debt gains.