ISLAMABAD: The supplementary finance bill announced via the mini-budget on Wednesday has proposed the taking back of legislation for the setting up of Directorate General of Transfer Pricing.
It was being established to examine master files and other records of multinational companies and enterprises having a turnover over Rs100 million and scrutinize billions of rupees worth of illicit wealth kept overseas, reports Express Tribune.
As a result, once the 2nd Supplementary Finance Bill is approved, the Directorate General of Transfer Pricing will be disbanded.
The Federal Board of Revenue (FBR) spokesman and Member Inland Revenue Atiq Sarwar told that Directorate General of International Taxes was going to be established in its place in 2019.
He shared the Directorate of Transfer Pricing was to be established in conformity to the provisions of the Finance Act but was unable to be practically constituted.
Also, the directorate was unable to appoint its director general and other staff and consequently entities refused to share a country-by-country record of their businesses with the tax regulator.
Due to the failure to establish the Directorate, the company’s believed sharing the important record wasn’t feasible for them.
As per sources, the tax regulator has made it binding for multinational companies and enterprise groups with turnover surpassing Rs100 million to share their master files and related records.
On failure to comply with the regulations, a fine of Rs2,000 per day will be levied on the companies who are unable to share the records of their international assets and those who don’t submit the record of their transactions are liable to pay an additional 1% fine.
