ByThe Federal Board of Revenue (FBR) has actively utilized international cooperation to tackle tax evasion during the fiscal year 2023-24. In this period, the FBR processed 30 inward exchange-of-information (EOI) requests from global tax jurisdictions and sent 17 outward EOI requests seeking data from other countries. These initiatives aim to improve transparency and address tax evasion by individuals and corporations with offshore accounts.
The FBR’s report underscores its growing reliance on international networks and adherence to OECD guidelines for automatic information exchange. These measures enhance access to data on Pakistani taxpayers with foreign assets, facilitating efforts to curb tax evasion and align with global tax compliance standards.
A significant part of this effort includes the country-by-country reporting system, which mandates multinational corporations to provide accurate financial reporting across jurisdictions. The data revealed 41 records of “outward transmission of local filing,” alongside over 1.4 million records shared in outward transmission and nearly 580,000 records in inward assignment for reciprocal filing.
The FBR also highlighted disparities in tax compliance and its commitment to addressing profit shifting and base erosion. By implementing advanced systems for information exchange, the FBR is bolstering corporate tax compliance and strengthening its ability to track financial activities across borders.
