Secrecy of account holders: FBR asks PBA to seek SBP governor's views

The Federal Board of Revenue has asked Pakistan Banks Association (PBA) to approach the State Bank of Pakistan (SBP) for obtaining expert opinion of the SBP Governor on the issue of maintaining secrecy of accountholders information at the time of filing of monthly withholding tax statements by the banks.
Sources told Business Recorder that the issue of secrecy of banking information was discussed during a meeting between the representatives of PBA and senior officials of the FBR at the FBR House here on Thursday. The issue mainly related to the sharing of taxpayer's information either on service of a notice u/s 176 of the Income Tax Ordinance, 2001 or under the provisions of section 165 of the Ordinance wherein the monthly withholding tax statements are filed particularly for 'Profit on Debt' paid.
According to sources, representatives of banking sector expressed their concern over sharing of computerised national identity card numbers (CNICs) and other complete information of the payee as required in the withholding statements to be filed by the banks. Tax authorities have requested the bank's representatives to write a letter to the Governor SBP in case they feel that divulging of particular information in the withholding statements would lead to problems for the banking company due to secrecy of information. Tax authorities have further conveyed to the PBA that the association can further inform the SBP that the FBR is asking for complete information of the payees for filing of complete withholding tax statements required under section 165 of the Income Tax Ordinance 2001. The viewpoint of the SBP on the issue would facilitate in proper filing of monthly withholding tax statements by the banks.
Sources added the FBR may request the ministry of finance to convene meeting of all banks to resolve the issue of submitting complete information about the accountholders as required in the withholding tax statements. Such a meeting may only be called in case the matter still remains unresolved.