Sharing of Declaration of Assets of Civil Servants Rules 2023

FBR has issued rules titled Sharing of Declaration of Assets of Civil Servants Rules 2023, allow banks to seek asset details of civil servants.

In exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Board of Revenue is pleased to make the following rules, the same having been previously published vide Notification No. S.R.0.76(I)/2023 dated the 26th January, 2023, as required by sub-section (3) of section 237 of the said Ordinance, namely

Short title and commencement

(1) These rules shall be called the Sharing of Declaration of Assets of Civil Servants Rules 2023.

(2) They shall come into force at once.

Definition

In these rules, unless the context otherwise requires: 

(i)     “Civil Servants” means an employee serving under Civil Servants Act, 1973 (LXXI of 1973);

(ii) “CDD” means customers due diligence as defined under the Anti-Money Laundering Act, 2010 (VII of 2010); and

(iii) “Ordinance” means the Income Tax Ordinance, 2001 (XLIX of 2001).

(2)       All other words and expression used in these rules, but not defined herein, shall have the same meaning as are assigned thereto in the Ordinance.

Application

(1) These rules shall apply for sharing of information with banking companies as defined under sub-section (7) of section 2 of the Ordinance.

(2)       These rules shall apply for limited purpose of sharing of information in respect of civil servants in BS 17 – 22.

(3)       The FBR shall share a simplified or abridged version of declaration, based on the fields agreed with the State Bank, made by a civil servant in his electronic declaration filed with FBR

Compliance Requirements

(1) The bank shall use a pre-notified, secured and single authorized email address and the email account shall be under control and responsibility of the head of compliance of the bank in terms of its authorization, use and security of data being shared.

The authorized email account shall be used for request or receipt of simplified declarations as envisaged under sub-rule (3) of rule 3.

(2)       The bank shall communicate to the FBR the credentials of a maximum of four Focal Persons (officials) authorized to communicate with FBR through the authorized email. The following information shall be furnished by the bank in respect of focal persons —

(0      Complete names;

(ii) CNICs;

(iii) designations;

(iv) office address;

(v)       office phone numbers;

(vi) mobile numbers; (vii) fax;

(viii) authorized email address; and

(ix) a two-factor authentication method to determine that the email has been sent by the designated officials of the bank.

(3)       The authorized officials of the bank shall submit a declaration to the FBR that he shall maintain secrecy of the information that shall be provided to, and it shall not be divulged to any person.

(4)       The bank shall promptly communicate any change of Focal Persons’ credentials above and shall not allow to use the secured email until the credentials have been communicated to the FBR.

Procedure

(1) Before generating request seeking information from the FBR for CDD, the banks shall —

(a)       determine in writing the reasons for which CDD requires that the information from FBR is to be accessed (the decision of the bank);

(b)       obtain an express written consent from the civil servant of whom the bank intends to access information from FBR; and

(c)       obtain a certificate from the civil servant as per prescribed format annexed duly signed by the person declaring that he is a civil servant of BS-17 and above, with his complete name, designation, employee number and all other particulars that are prescribed as per schedule.

(2)       The focal person of the bank shall send the authorized email to the FBR seeking provision of information and follow the procedure as under —

(a)       send a scanned copy of the decision of the bank as referred in clause (a) of sub-rule (1) of rule 5;

(b)       send a scanned copy of the express written consent as referred in clause (b) of sub-rule (1) of rule 5; and

(c)       send a scanned copy of certificate prescribed under clause (c) of sub-rule (1) of rule 5.

(3)       The FBR shall provide simplified or abridged information, within five working days, through the authorized email. The FBR can deny a request only in exceptional cases, including when the asset declaration has not been filed, the civil servant is not covered under this Ordinance, or for any other similar reason that the FBR is unable to provide the requested information.

The FBR shall notify the bank of the decision and the reason for the refusal, within five days from receipt of the request. In case of dispute, the decision of FBR shall prevail, being custodian of information.

(4)        The FBR shall have a dedicated Banks’ CDD desk assigned to an authorized officer supported by designated officials to deal with the information requests from the banks.

(5)       The FBR may use other secured electronic access and transmission methods as available from time to time like a dedicated portal page.

Responsibilities of the Bank

(1) The bank shall abide by sub-section (7) of section 216 of the Ordinance in respect of information received from FBR.

(2)       The bank shall provide bi-annual feedback on the use of information received by the bank as well as on the outcome of CDD in terms of success of new accounts opened and how the information helped the bank in establishing its client relationship.

Case-wise feedback to be provided by 31st July and 31′ of January of every year of preceding six months’ information requests made by the bank.

(3)       The bank shall retain the hard copies of documents as mentioned in subrule (1) of rule 5 and shall produce to the State Bank of Pakistan (SBP) for the purpose of compliance audit of the steps required under sub-rule (1) of rule 5.

(4)       The compliance audit shall be undertaken by the SBP once a year unless specifically asked by FBR on case to case basis.

 

Annexure

Prescribed Certificate of Rule [5 (1)(c)]

Declaration

I declare that I am a serving civil servant in BS___________________ with the following particulars:

Name:

CNIC:

Employee No:

Parent Department:

Present Department / Place of posting:

 

Signed:

Dated:

Countersigned (Bank Officer)

Verified and signed before me
Dated:

Moreover, the “Sharing of Declaration of Assets of Civil Servants Rules, 2023 have allowed all commercial banks to seek and get declaration of asset details of the civil servants from the Federal Board of Revenue (FBR) before they open their bank accounts.

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