Islamabad: Federal Board of Revenue (FBR) and Security Exchange Commission of Pakistan (SECP) have agreed to work closely to exchange data for broadening the tax base, says a press release issued Tuesday.
The agreement to create an interface of data between the two organizations was achieved at a recent meeting attended by Member Inland Revenue Service (IRS) FBR, Mr. Khawar Khursheed Butt and SECP Chairman Muhammad Ali Ghulam Muhammad. The two sides agreed to work out modalities for sharing of data within the legal framework. A Memorandum of Understanding (MoU) between FBR and SECP will also be signed before March 15, 2011 to put in place a proper framework to use the data for broadening the tax base.
It may be added that nearly 58,000 corporate entities are registered with the SECP but only 19,331 of them had filed income tax returns with the FBR up to January 31, 2011. “The exchange of data will help FBR identify the dormant companies besides reaching out to those actively engaged in business activities but failing to file their returns,” said the Member (IRS), hoping the exercise would mark a significant step in bridging the tax gap in the corporate sector.-FATE Wing, FBR