Income tax statements sought through banks headquarters

The Federal Board of Revenue (FBR) has asked the banks to file income tax statements only through the headquarters on behalf of all regional branches operating in the field formations. Sources told Business Recorder on Saturday that every branch of bank is not required to file a separate income tax statement, which is creating complications in compilation of data.
The regional branches of banks should submit the statements pertaining to withholding of tax to the main headquarter. The bank's headquarter would file the collective statement to the FBR for compilation of data. The same is the case of companies, where head office should file statement on behalf of its regional branches.
Therefore, any company or bank should be represented as one taxpayer instead of several branches submitting different statements.
Under the new centralised system, the headquarter, where the bank is being assessed, would file one withholding statement to the FBR. However, each regional branch could submit a copy of the statement to the respective LTU or RTO for information purposes. Thus, the headquarters would be responsible for maintaining a centralised data on taxes for the FBR. In case of any query, the board can directly approach the bank's headquarter instead of regional branches.
The issue was discussed in the last commissioner's conference when tax officials brought to the notice of board that banks branches are filing statements as well as headquarters creating confusion for the tax department.
FBR Chairman M. Abdullah Yusuf informed the conference that it is not essential that every branch of bank should file separate statement. Only Head Office can file the same. Accordingly, the income tax department should advise the head offices to file consolidated statements.
As far as credit of tax is concern, the FBR chief said it should not be a problem and system may be evolved by Pakistan Revenue Automation Limited (Pral). He proposed that the tax may be credited to the concerned Large Taxpayer Unit (LTU) or Regional Tax Office (RTO).