The United Kingdom will help Pakistan enhance its capacity for collecting taxes and instituting tax reforms.
A Memorandum of Understanding (MoU) in this regard was signed in Islamabad on Wednesday between the Federal Board of Revenue (FBR) and His Majesty’s Revenue and Customs of the United Kingdom of Great Britain and Northern Ireland (HMRC).
The agreement will see the two services work together on capacity-building programs to assist Pakistan in achieving its tax reforms agenda, particularly two strategic tax reforms objectives: Data utilisation and processes for international tax components; and improved institutional capacity to implement strategic plans.
The reforms will be affected in areas including compliance risk management, AML functions, information and data. FBR is also collaborating with HMRC & OECD under the initiative of Tax Inspectors Without Borders (TIWB) for capacity building of FBR officers. Under this initiative, HMRC experts will train FBR officers on tax/financial investigations involving tax fraud, money laundering and prosecution.
British Acting High Commissioner Andrew Dalgleish said that the partnership between HMRC and FBR through Revenue Mobilisation, Investment and Trade Programme (REMIT) builds on past successes in international taxation, such as automatic exchange of information between tax jurisdictions along with new areas of collaboration.
“The UK is proud to be supporting Pakistan’s efforts and looks forward to the shared benefits it can bring to both economies,” he said.
FBR Chairman Asim Ahmad called for cooperation on developing expertise in data analysis and how data can be used to broaden the tax base.
He added that he is looking forward to building cooperation over the next two years to enable FBR to develop in-house capabilities in these areas.