FBR makes it Mandatory for Companies and APOs to publish their Ownership Data.

 by official web

The Federal Board of Revenue (FBR) has made it mandatory for every company and association of persons (AOP) to electronically provide details of their beneficial owners to the FBR.

FBR issued S.R.O. 229(l) 12023 to propose amendments in the Income Tax Rules, 2002 on Tuesday.

A beneficial owner who exercises ultimate effective control over a company or AOP through direct ownership rights (through holding shares) of 25 percent or more shall provide the following data or information. a) the name of the beneficial owner; (b) father's name/husband's name; (c) date of birth; d) the nationality of the beneficial owner(s); (e) CNIC/NICOP/NTN/passport number or foreign national identification number of the beneficial owner; (0) The percentage of interest or ownership interest held by the beneficial owner; (g) the date of acquisition of the ownership interest; and (h) the residential address and business address of the beneficial owner.

The rules said that every company and AOP already registered with the FBR must electronically furnish details of their beneficial owners to the board on or before December 31, 2023 as prescribed in Form (BOF-01) of Part IXA of the First Schedule to these rules through online board system.

The beneficial owner record is updated whenever any of the beneficial owner information on the form changes within 30 days of the change. In the case of a non-profit organization, the beneficial owners of the non-profit organization will be the incorporator, trustee, founder, settlor, beneficiary, or group of beneficiaries: provided that the beneficiary or beneficiary class of the non-profit organization is the general public, the beneficiary or group of beneficiaries of such non-profit organization is exempt from the obligation to provide information on beneficial owners under this rule.

In case there is no change in the beneficial owners of the Company or AOP during a particular tax year, the company or AOP as the case may be shall submit a “Certificate of Confirmation of Beneficial Owner” as prescribed through the Board's online system. along with the income tax return to be filed for that tax year, the FBR added.

Under the new rules, each company or AOP will keep records of all beneficial owners for a period of ten years from the date on which the beneficial owners of that company or AOP cease to be the beneficial owners of that company. company or AOP. The Board shall maintain the records of the beneficial owners of all companies and AOPs registered with the Board for a period of fifteen years from the date on which such company or AOP ceases to be registered with the FBR.