Draft Rules for Real Time Access to Information and Databases Regarding Documentation of Economic Transactions

Government of Pakistan Revenue Division Federal Board of Revenue Inland Revenue ***** Notification Islamabad, the 5th December,2023. amendments S.R.O. f 77l (l)12023.-Tl:re following draft of certain further in the Income Tax Rules,, 2002, which the Federal Board of Revenue proposes to make in exercise ofthe powers conferred by clause (g) ofsub-section (l) ofsection l75A read with sub-section (1) of section 237 ofthe Income Tax Ordinance,200l (XLIX of 2001), is hereby published for information of all persons likely to be affected thereby and, as required under sub-section (3) ofthe said section237, notice is hereby given that objections or suggestions thereon, if any, may, for the consideration of the Federal Board of Revenue, be sent within seven days of publication of the draft in the official Gazette. Objections or suggestions which may be received in respect of the said draft, before expiry of the aforesaid period, shall be considered by the Federal Board of Revenue, namely: - Draft Amendments In the aforesaid Rules, after Chapter VIIIA, the following new Chapter shall be added, namely: - ..CHAPTER VIIIB REAL TIME ACCESS TO INFORMATION AND DATABASES

39E. Application of this chapter. This chapter shall apply to carry out - the purposes of section I 75A of the Ordinance, which provides for real time access to information and database to the Board by the organizations (hereinafter referred to as the "integrated organization"). these rules, unless there is anything repugnant to the 39F. Definitions. - In subject or context, - (a) "economic transaction" means a transaction for exchange or transfer of title or ownership of assets, goods or services involving economic value provided by one person to another person including but not limited to the transactions of: (i) tangibles including all types of physical goods manufactured or produced, imported or exported; ( ii) intangibles including all types of services, rights, interests, or licenses by whatever name called; (iii) unilateral transfers including gifts, personal remittances and other transactions or unrequited transfers which do not involve any claim for repayment; (iv) capital transfers including capital receipts and capital payments; (v) any activity carried out by any person for sale and purchase of any asset, payment for any expenditure, deriving of any income, profits or any gain; ( ri) any approval, authorization, permission, registration, access, concession granted for any pu{pose, and any financial transaction; and (vii ) any nature as notified by the Board for the purpose of these rules.

includes the use of any computers, (b) "information technolory (lT)" storage, networking and other physical devices, infrastructure and processes to create, process, store, secure and exchange all forms of electronic data; means any agency, authority, institution or (c) "integrated organization" organization mentioned in section 175A of the Ordinance and listed in rule 39L and shall include their attached departments, divisions, wings, institutes, sub-offices, autonomous bodies by whatever name called, which are required under these rules to be integrated for the purposes of the said section l75A; and (RADAR)" means (d) "real-time accessed data analysis repository Common Transmission System or IT platform specifically designed, installed and integrated by the Board with the IT platform of the integrated organization for the purposes of real-time access to information and database in compliance to section 175,4, of the Ordinance and these rules under this Chapter. ( I ) Every integrated 39G. Real time access to information and database. - organization shall integrate with Board's RADAR not later than l5th Jantary,2024 or such date as notified for integration of such organization in order to provide real time access to information and database relating to economic transactions as carried out by any person with the or reported to the said integrated organization. (2) The information so furnished shall be deemed to be an information collected by the Board for the purposes of laws administered by it. ( 1 ) For the 39H. Mode, manner and form for integration with RADAR. - purposes of these rules, the integrated organization shall establish and maintain IT

platform and shall provide digital information against a unique identifier in the mode, manner or form as specified by the Board through separate instructions on case to case basis or generally. (2) Until real-time access to information and database is made available under sub-rule (1) , such information and data shall be provided periodically in such form, manner and by such date as may be specified by the Board through instructions on case to case basis. (3) Every integrated organization which is required to fumish information as specified in this chapter shall provide true, correct, authenticated and complete information. ( 1) The integrated organization shall 39I. Obligations and requirements. - make arrangements to provide information to Board's RADAR: (i) on the format as specified by the Board, (ii) in the form which is readable through and compatible with Board's RADAR; and (iii) through a secure means, encrypt and preserves the transaction data and information in an irrevocable and secure manner, with authentication protocol or digital signature. (2) An integrated organization must integrate each and every data set relating to the economic transactions performed with the or reported to the said organization by any person. The integrated organization 39J. Records, access and inspection. - (l) shall maintain the records of all transactions made by any person with the or reported to the integrated organization and shall provide access of such record to an

authorized officer of the Board and shall fumish verified copies of such record whenever required. (2) The Board shall periodically conduct inspection of the integrated organization to ensure that the integrated organization is complying with these rules, including by: and reporting (a) checking ifthe integrated organization is recording correct information; (b) checking if the IT platform of the integrated organization complies with the guidelines set out by the Board from time to time; (c) checking the operation ofthe security protocols; and (d) requiring integrated organization to provide relevant information and documents as necessary. ( I The 39K. Consequences of non-compliance or contravention.- ) integrated organization which is found to have tampered with the IT platform or fails to integrate with the Board' RADAR, or refuses to fumish the information thereunder or furnishes false, incorrect, incomplete, or unauthenticated information, the principal accounting offrcer or the principal offrcer of such organization shall be personally responsible for such default and shall be liable to a penalty and/or prosecution, in accordance with the relevant provisions of the Ordinance. (1), where the default (2) Notwithstanding anything contained in sub-rule as specified in sub-rule ( 1 ) has been committed and it is proved that it was committed with the consent or connivance of, or is aftributable to any neglect on the part ofany

director, manager, secretary or other officer of the integrated organization, such director, manager, secretary or other officer shall be guilty of default and shall be jointly and severally liable for penalty and/or prosecution as specified in sub-rule (1). 39L. Agency, authority, institution or organization. - For the purposes of clause (g) of sub-section (l) of section 175A of the Ordinance, the agencies, authorities, institutions and organizations as listed in Table below including their attached departments, divisions, wings, institutes, sub-offices, autonomous bodies by whatever name called, are required to integrate with the Board's RADAR and shall fumish information under section l75A of the Ordinance: Provided that the Board may, from to time, by notification in the official Gazetle, amend the said Table so as to add any entry therein or modiff or omit any entry therefrom; namely:- Table S. No. Name of Organizations A. Federal Government and Semi-Autonomous Departments I Accountant General Pakistan Revenues 2. Altemative Energy Development Board J Aviation Division 4. Board of Investment 5 Controller General of Accounts 6 Economic A flairs Division 7 Employees' Old-Age Benefits Institution

8 Engineering Development Board 9 Export Processing Zones Authority t0. Federal Employees Benevolent and Group Insurance Fund ll. Finance Division, 12. Military Accountant General, Rawalpindi 13. Military Lands & Cantonment Headquarters, Rawalpindi 14. Ministry of Energy (Power Division) 15. Ministry of Foreign Affairs 16. Ministrv of Maritime Affairs 17. Ministry of Commerce and Textile 18. National Logistics Cell (NLC) 19. National Transmission & Dispatch Company (NTDC) 20. Oil & Gas Development Company Limited (OGDCL) 21. Oil & Gas Regulatory Authority (oGRA) 22. Pakistan Agricultural Research Council 23. Pakistan Centre for Philanthropy (PCP) 24. Pakistan Council of Scientific and Industrial Research 25. Pakistan National Shipping Corporation 26 Pakistan Railway Headquarters, Lahore 27. Pakistan Software Export Board (PSEB) 28. Pakistan Telecommunication Authority (PTA) 29. Pakistan Water & Power Development Authority 30. Petroleum Division 31. Private Power and Infrastructure Board (PPIB)

32. Registrar of Ships & Superintendent of Light Houses 33. Securities & Exchange Commission of Pakistan (SECP) 34. State Bank of Pakistan (SBP) 35. Pakistan Medical and Dental Council (PMDC)/Pakistan Medical Council, Medical Colleges and Dental Colleges (Public & Private) 36. Capital Development Authority (CDA) Islamabad 37. Excise and Taxation Department, Islamabad 38. Pakistan Mercantile Exchange 39. Pakistan Engineering Council (PEC) 40. Higher Education Commission [mC) 41. Frontier Works Organization (FWO) 42. Mari Petroleum Ltd. 43. Federal Investigation Agency (FIA) and Integrated Boarder Management System) 44 Evacuee Trust 45. Central Depository Company 46. Discount & guarantee houses 47. Federal Govemment Housing Authorities 48. Ministry of Industries and Production 49. Overseas Pakistani Foundation 50. Pakistan Council of Scientific and Industrial Research 51. Pakistan Stock Exchange 52. Pakistan National Accreditation Council (PNAC) 53. Section 42 Companies (SECP) and all NPOsA.JGOs 54. Karachi Cotton Exchange

55. All Federal Govemment Departments and authorities not specifi cally mentioned above 56. All entities as mentioned in clause (66) of the Part-I of the Second Schedule to the Income Tax Ordinance, 2001 . B. ProvincialGovernmentDepartments 57. Accountant General, Baluchistan 58. Accountant General, KPK 59. Accountant General, Punjab 60. Accountant General, Sindh 6t. Board of Revenue, Baluchistan 62. Board ofRevenue, KPK 63. Board of Revenue, Punjab 64 Board ofRevenue, Sindh 65. Sindh Revenue Board (SRB) 66 Punj ab Revenue Authority (PRA) 67. Khyber Pakhtunkhwa Revenue Authority (KPRA) 68. Baluchistan Revenue Authority (BI{A) 69. Directorate of Postal Accounts, Lahore 70. Energy Department, Sindh 71. Finance Department, Baluchistan 72. Finance Department, KPK 73. Finance Department, Punj ab 74. Finance Department, Sindh 75. Provincial Mines & Mineral Development Departments 76. ProvinciaI Sports Boards

77. Social Securiw lnstitutions 78. Provincial Building Control Authorities 79. Provincial Excise and Taxation Departments (with respect to information other than Motor Vehicle Registration) 80. Provincial Registration Departments 81. Provincial Development Authorities (LDA, KDA, HDA, etc.) 82. Industrial Development Board (IDB) 83. Forest Development Corporation (FDC) KP 84. Board of Intermediate & Secondary Education (BISE) as Regulators of Private Educatior/School and Colleges 85. Provincial Cane Commissioners 86. Accounts,/DDO Offices 87. All Provincial Departments and authorities not specifically mentioned above C. Financiallnstitutions 88. Asset Management / Mutual Funds Institutions 89. Commercial Banks 90. Micro Finance Banks 91. Development Financial Institutions (DFIs) 92. Real Estate Investment Trusts (REITs) 93. Insurance Companies 94. National Investment Trust Limited 95. Pakistan Mortgage Refinance Company Limited 96. Pakistan Stock Exchange 97. Pension Funds (registered under Voluntary Pension System)

98. Private pension funds and trusts (registered with FBR) 99. Provident Fund Institutions (those registered under Provident Fund Act 1925) 100. House Finance Companies 101. Investment Banks 102. Micro-finance Banks (Easy Paisa, Jazz Cash etc.) 1 03. Modaraba companies 104. National Clearing Company of Pakistan Limited 105. NIFT & RTGS 106. Non-Banking Financial Companies (NBFCs) t07. Non-Banking Financial Institutions (NBFIs) licensed by SBP 108. Payment Aggregators 109. Payment Service Providers (PSPs) & Payment Service Operators (PSOs) 110 Remittance Gateways (SBP Licensed) D. Private/Others l1l. Agha Khan Development Network 112. Association of Builders and Developers (ABAD) 113 All Bahria Town Private Limited Companies tt4. Cooperative Housing Societies 115 All Defense Housing Authorities (DHAs) 116 Airforce Housing Societies t17 Navy Housing Societies 118 China Overseas Ports holding Company (Pakistan) Pvt. Ltd.,

I t9. Gwadar Free Zone Company (GFZC) 120. Habib Rafiq (Pvt.) Limited 121. Pakistan Film Producers Association 122. Pakistan Science Foundation 123. Pakistan Software Houses Association for IT & ITES (P@sHA) 124. Shipping Companies 125. Zedem Intemational (Pvt.) Limited 126. I marat Group of Companies t27. Future Developments Holdings (Prt.) Limited r28. Emaar Pakistan 129. Al Ghurair Giga Pakistan (Pvt.) Limited 130. Lakhra Coal Development Company Sindh 131. Sindh Engro Coal Mining Company 132. Engro Power Generation Company r 33. Pakistan Bar Council & Associations 134. Provincial & District Bar Associations 135. FPCCI, Provincial and Local Chamber of Commerce and Industries 136. All Pakistan Textile Manufacture Associations (APTMA) 137. Capital Market (Brokerage houses) 138. Development Finance Institutions 139. Exchange Companies (SBP Licensed) 140. All Housing Societies not specifically mentioned in this table t41. Infrastructure Service Providers (PTA Licensed)

t42. Leasing companies t43. Local Loop License Holders (PTA Licensed) 144. Toll Plazas/Motorway (NHA gave contract to One Net etc.) 145. Venture capital companies IF.No. 4(40UT-Budeet/20231 I Second Secretary (Rules & SROs)