OECD to help Pakistan implement world tax standard
Credit: The News International
ISLAMABAD: The Organisation of Economic Cooperation and Development (OECD) on Friday announced that they launched new programme to support Pakistan in implementing new international tax standards.
According to statement issued by the OECD after holding three days talks with Pakistani authorities stated that as part of a mission held from July 16 to 19, 2018, in Islamabad, Pakistan, aimed at launching the induction programme to support the implementation of the base erosion and profit shifting (BEPS) measures and initiating the tax inspectors without borders (TIWB) programme, an OECD delegation met Dr Shamshad Akhtar, Finance Minister of Pakistan, Ms Rukhasana Yasmin, Chairperson of the Federal Board of Revenue and Dr Mohammad Iqbal, Member Inland Revenue Policy to discuss the progress of the country in implementing the new international standards to combat tax avoidance and tax evasion.
Pakistan is an active member of the Inclusive Framework on BEPS and the Global Forum on Transparency and Exchange of Information for Tax Purposes. It is also a signatory to the Multilateral Convention to Implement Tax Treaty Related measures to prevent BEPS and to the convention on mutual administrative assistance in tax matters.
The visit marked the launch of the support programme in Pakistan for the implementation of the BEPS package, including the four minimum standards on countering harmful tax practices, preventing tax treaty abuse, country-by-country reporting and improving dispute resolution. A TIWB programme focused on capacity building of tax officials through a real-time, “learning by doing” approach to handling audit cases on transfer pricing and international taxation was initiated.
A technical workshop facilitated by the OECD, bringing together senior officials of the Federal Board of Revenue (FBR) of Pakistan was held to identify areas where support was needed. The OECD noted the good progress made by Pakistan on the implementation of the BEPS minimum standards. A roadmap outlining actions to be undertaken by Pakistan on the remaining work on implementation of the international standards, according to a defined timetable, was agreed.
When contacted to FBR top officials, they told The News on Friday night that it was routine meetings aimed at improving capacity of Pakistani officials to meet international standards. “Our next review will be due by 2020, so nothing is required to meet OECD standards to ensure exchange of information on tax issues,” they concluded.