Pakistan’s Federal Board of Revenue (FBR) has created a task force to review taxation of international transactions, carried out by multinationals. The task force will look specifically banking sector, non-resident companies, petroleum/gas exploration companies, pharmaceutical, telecommunication, satellite TV channels and mobile phone companies.

FBR chairman Abdullah Yusuf said the task force will pay particular attention to transfer pricing by pharmaceutical sector and issues pertaining to foreign tax credit.

The group is composed of representatives from government departments including Mukhtar Ahmad Gondal, director general, Large Taxpayer's Unit (LTU), Karachi; Salman Ali Sheikh, commissioner, Securities and Exchange Commission of Pakistan (SECP); Muhammad Ashraf Tiwana, joint director, Law, SECP; Dr Tariq Masood, additional commissioner, LTU, Karachi; Dr Shafqat Hussain Kehar, additional commissioner, LTU, Karachi; and Muhammad Riaz, secretary (international taxes) policy, FBR.

Members from the private sector are: chartered accountant Shabbar Zaidi of A F Ferguson; Saleem Raza, of PBC; Naveed Khan, president of ABN Amro; Salman Burni CEO, GSK Co (Pak); and Tariq Khamisani, CEO, British Petroleum (Pakistan) Ltd.

The group will analyse international business transactions carried out by non-resident companies and multinational company's revenue spinners. It will make key recommendations for improving revenue collection from non-resident companies. The group is using the UK’s Revenue & Customs as its primary model for transfer pricing legislation and royalty income.