Islamabad: The Federal Board of Revenue (FBR) has established the Directorate General of International Tax Operations, a news source reported. The step was taken after the government had obtained power of provisional assessment against owners of offshore assets.
The government amended section 230E of the Income Tax Ordinance 2001 for establishment of Directorate General of International Tax Operations.
According to the approved bill, the Directorate General of International Tax Operation shall have a Director General. It shall also have as many directors, additional directors, deputy directors, assistant directors and such other officers as FBR may appoint by notification.
The Board may by notification in the official gazette:
(a) Specify the function and jurisdictions of the Directorate General and the officers;
(b) Confer the powers of authorities specified in Section 207 upon the Directorate General and its officers.
The functions and powers of the Directorate General of International Tax Operations will include but will not be limited to:
- Receiving and sending information from other jurisdictions under spontaneous, automatic and on demand exchange of information under an exchange of information agreement
- To levy and recover taxes by passing an assessment order under Section 123 (IA) in case of undeclared offshore assets and income.
The Directorate is empowered to receive, transmit and exchange country by country reports to jurisdictions that are parties to international agreements. It can also conduct transfer pricing audit in cases selected for such an audit by the Director General.