The Federal Board of Revenue is planning to exercise powers under Article 25(1) of the Avoidance of Double Taxation Treaty (ADTT) to get information of Pakistanis maintaining accounts in Switzerland, it is learnt on Tuesday. According to sources, it is high time for the FBR to obtain all information under Article 25(1) of the ADTT between Pakistan and Switzerland regarding Pakistanis maintaining accounts in the Switzerland.
The sources said that this has recently been done by many countries such as India, Philippine, Nigeria, Peru, Kazakhstan, Mexico, Mali, Argentina, USA, Germany, UK, etc. The sources said the board was presently considering establishing a special cell in Karachi to invoke the provision of Article 25(1) by seeking the information regarding the bank accounts maintained by Pakistanis in various banks of Switzerland.
They said that information obtained from Switzerland would not only be processed for levying taxes but would also help the department identify potential taxpayers. Replying to a question, they said the Swiss Parliament had passed a bill “Return of Illicit Assets Act, 2010” on October 10, 2012, which would enable the developing countries, including Pakistan to recover billions of dollars of black money shifted by unscrupulous individuals and companies to Switzerland. After this enactment, it will now be possible to retrieve the tax evaded money from Switzerland, which makes it obligatory upon Switzerland to provide information regarding Pakistanis who are maintaining accounts in Switzerland, the sources said.
Author: Muhammad Ali
Source: Business Recorder