Income Tax Rules, 2002

From: 2023-11-01 - To: 0000-00-00 1[CHAPTER XIIA COMMON REPORTING STANDARD 78A. Application. - This Chapter contains rules for reporting financial institutions to provide information to the Federal Board of Revenue for the purposes of section 107 read with section 165B of the Income Tax Ordinance, 2001 (XLIX of 2001). 78B. Definitions.- In this Chapter, - (a) “Reporting Financial Institution” means any Participating Jurisdiction Financial Institution that is not a Non-Reporting Financial Institution; (b) “Participating Jurisdiction Financial Institution” means- (i) any Financial Institution that is resident in a Participating Jurisdiction, but excludes any branch of that Financial Institution that is located outside such Participating Jurisdiction; and (ii) any branch of a Financial Institution that is not resident in a Participating Jurisdiction, if that branch is located in such Participating Jurisdiction; (c) “Financial Institution” for the purposes of this Chapter, the term means a Custodial Institution, a Depository Institution, an Investment Entity or a Specified Insurance Company; (d) “Custodial Institution” means any Entity that holds, as a substantial portion of its business, Financial Assets for the account of others. An Entity holds Financial Assets for the account of others as a substantial portion of its business if the Entity’s gross income attributable to the holding of Financial Assets and related financial services equals or exceeds twenty per cent of the Entity’s gross income during the shorter of - the three-year period that ends on the 31st December (or the final day of a non-calendar year accounting period) prior to the year in which the determination is being made; or the period during which the Entity has been in existence; (e) “Depository Institution” means any Entity that accepts deposits in the ordinary course of a banking or similar business; (f) “Investment Entity” means any Entity - (i) that primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer namely:- trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.), foreign exchange,…