Panama, Swiss authorities to share details of Pakistanis’ money

ISLAMABAD: Authorities in Panama and Switzerland will provide bank account details of Pakistanis to Federal Board of Revenue (FBR) under international treaty on tax evasion, sources said.
Under the international treaty the arrangements have been made that member countries will exchange past and present details of persons having bank deposits above $1 million.
However, the exchange of information would be restricted to present details related to less $ 1 million value accounts or new accounts opened in the reporting year.
Reportedly, there are many offshore accounts and investments of Pakistanis, especially in Panama and Switzerland. The official said that after the implementation of treaty both of the countries being the member of OECD treaty on prevention of tax evasion would share the details of Pakistani residents.
Pakistan on September 14, 2016 signed the the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and becomes 104th member countries of OECD group in prevention of tax evasion. Presently the total number of member countries has increased to 105.
The FBR has notified rules under which it will be mandatory for Pakistani financial institutions to provide data to FBR on annual basis by September 30 of next calendar year for further dissemination under automatic exchange arrangement.
In the first year the information will be restricted to six months as Pakistan will apply the treaty from July 01, 2017.
The official said that the draft common reporting standards are almost equal to standards adopted by OECD members.
Under the draft common reporting standards, the financial institutions, in case of high value accounts, would provide information, which included: most recent documentary evidence; most recent account opening contract or documentation; the most recent documentation obtained by the financial institution pursuant to Anti-Money Laundering (AML) or Know Your Customer (KYC) Procedures or for other regulatory purposes.

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