KARACHI: Federal Board of Revenue rings alarm bells over huge cashwithdrawal from banks.
Banks have agreed to share details of their account holders with taxauthorities in a deal inked this week to check suspected undocumented moneyin the banking channels.
An agreement was reached in a meeting between Federal Board of Revenue(FBR) Chairman Shabbar Zaidi and chief executives of commercial banks onNovember 27, 2019 at the Large Taxpayers Unit (LTU).
“It would enable the tax department to access real-time information oftransactions made through the banking system,” a source said.
Under Section 165A, banks are responsible for providing details offinancial transactions made by their account holders to FBR. Sources saidZaidi, at the meeting said Section 165A was amended in 2014, 2018 andrecently through Supplementary Finance Amendment Act, 2019 on PBA’srecommendations.
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Those details include a list of persons making cash withdrawal ofRs50,000/day or over Rs1 million/ month; deposits of Rs10 million/ month;credit card payment of Rs250,000/ month; and details of persons receivingprofit on debt above Rs500,000/ year.
It is pertinent to mention here that the government had also madearrangements to streamline laws to access bank deposits for identifyingfinancial transactions.
