Pkrevenue.com

Day: December 19, 2019

  • Law drafted to examine national saving schemes investments for money laundering, terror financing

    Law drafted to examine national saving schemes investments for money laundering, terror financing

    ISLAMABAD: The government has draft law to examine involvement of money laundering and terror financing in investment made in national saving schemes.

    The ministry of finance on Thursday issued draft rules namely National Saving Schemes (AML and CFT) Rules, 2019.

    Under the draft rules, the Central Directorate of National Savings (CDNS) would conduct customers due diligence (CDD) of all the customers / investors.

    “Every customer, whether permanent or occasional and whether natural or legal person or legal arrangement, shall be identified for establishing business relationship and for the purpose following information shall be obtained, verified using reliable, independent source documents, data or information and recorded namely: –

    (a) full name as per identity or registration documents;
    (b) national identity card, passport, national identity card for overseas pakistanis, Pakistan origin card or alien registration card number, etc.
    (c) registration or incorporation number of business, if applicable;

    (d) residential address, telephone numbers and e-mail, if available;

    (e) business address, telephone numbers and e-mail, if available;

    (f) date of birth;

    (g) date and place of registration or incorporation of business, if applicable;

    (h) nationality

    (i) place of birth;

    (j) national tax number (NTN), if applicable;

    (k) nature of business and location, if applicable;

    (l) sources of earnings;

    (m) customer’s net worth in respect of legal persons, legal arrangements and high risk customers; and

    (n) annual income

    The minimum set of documents to be obtained by the office of issue or third party in case of each category of customers shall be as follows:-

    (a) In respect of individuals, a photocopy of any one of the following valid identity documents namely:-

    (i) computerized national identity card (CNIC) issued by NADRA; or

    (ii) national identity card for overseas Pakistani (NICOP) issued by NADRA; or

    (iii) Pakistan origin card (POC) issued by NADRA; or

    (iv) alien registration card (ARC) issued by NADRA; or

    (v) passport having valid visa on it or any other proof of legal stay along with passport in respect of foreign national individuals only.

    (b) In respect of limited corporations and companies.-

    (i) certified copies of-

    (A) resolution of board of directors for opening of account specifying the persons authorized to open and operate the account (not applicable for single member company);

    (B) memorandum of association;

    (C) articles of association, wherever applicable;

    (D) certificate of incorporation;
    (E) Securities and Exchange Commission of Pakistan (SECP) registered declaration for commencement of business as required under the Companies Act, 2017 (XIX of 2017); and

    (F) list of directors required to be filed under the Companies Act, 2017 (XIX of 2017), as applicable;

    (ii). photocopies of identity documents as per sub-clause (b) of all the ` directors and persons authorized to open and operate the account;

    (c) In respect of trust clubs, societies and associations, etc.-

    (i) Certified copies of-

    (A) certificate of registration or instrument of trust; and

    (B) by-laws, rules and regulations;

    (ii) resolution of the governing body, board of trustees or executive committee, if it is ultimate governing body, for opening of account authorizing the person to operate the account;

    (iii). photocopy of identity document as per sub-clause (i) of clause (c) of the following:

    (A) authorized persons;

    (B) members of governing body, board of trustees or executive committee, if it is ultimate governing body; and

    (C) settlor, the trustees, the protector if any, the beneficiaries or class of beneficiaries

    (d) In respect of NGOs, NPOs and charities,-

    (i) certified copies of –

    (A) registration documents and certificates; and

    (B) by-laws, rules and regulations;

    (ii) resolution of the governing body, board of trustees or executive committee, if it is ultimate governing body, for opening of account authorizing the persons to operate the account;

    (iii) photocopy of identity document as per sub clause (i) of clause (d) above of the authorized persons and of the members of governing body, board of trustees or executive committee, if it is ultimate governing body; and

    (iv) any other documents as deemed necessary including its annual accounts and financial statements or disclosures in any form which may help to ascertain the detail of its activities, sources and usage of funds in order to assess the risk profile of the prospective customer;

    (e) In respect of minor accounts,-

    (i) photocopy of Form-B or birth certificate of the minor; and

    (ii) photocopy of identity document as per sub-clause (i) above of the guardian of the minor;

    (f) In respect of government institutions and entities not covered herein above.-

    (i) CNICs of the authorized persons; and

    (ii) letter of authorization from the concerned authority.

    the office of issue or third party shall verify identity documents of the customers from relevant authorities and bodies, including through NADRA’s verification system or biometric identification system and, where necessary, use other reliable, independent sources and retain copies of all reference documents used for identification and verification.
    The office of issue or third party shall be responsible for verification of the identity documents and the customer shall neither be obligated nor the cost of verification be charged to the customer.

    Where the customer is represented by an authorized agent or representative, or where customer is a legal person, the Office of issue or third party shall identify the natural persons who act on behalf of the customer and verify the identity of such persons and the authority of such natural persons shall be verified through documentary evidence, including specimen signature of the persons so authorized.

    Where beneficial owner is different from the customer, the office of issue or third party shall identify and take reasonable measures to verify identity of the beneficial owners using relevant information or data obtained from a reliable source, to the satisfaction of the office of issue.

    The verification of the identity of customers and beneficial owners, if any, shall be completed before business relations are established.

    The office of issue shall conduct ongoing due diligence on the business relationship, including;-

    (a) scrutinizing transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the office of issue’s knowledge of the customer, their business and risk profile, including where necessary, the source of funds; and

    (b) ensuring that documents, data or information collected under the CDD process is kept up-to-date and relevant, by undertaking reviews of existing records, particularly for higher risk categories of customers.

    The office of issue or third party shall maintain a list of all such customers and accounts where the business relationship needed to be closed on account of negative verification that includes all type of customer identity verification such as NADRA, UNSCR or any other document or information etc.

  • SRB extends sales tax return filing up to December 28

    SRB extends sales tax return filing up to December 28

    KARACHI: Sindh Revenue Board (SRB) has extended the last date for filing sales tax return for the month of November 2019 up to December 28, 2019 in order to facilitate taxpayers.

    A circular issued by the SRB on Thursday extended the last date for e-filing of tax return for the tax period of November 2019.

    The provincial tax authority said that in order to facilitate registered persons in adopting the newly introduced STRIVe system, the SRB allowed the registered persons, including the withholding agents covered by the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, to e-file their tax returns for the tax period November 2019, on or before Saturday December 28, 2019.

    However, the due date for e-deposit of the amount of Sindh sales tax for the tax period November 2019 would remain unchanged.

  • Pakistan’s forex reserves increase to $17.655 billion

    Pakistan’s forex reserves increase to $17.655 billion

    KARACHI: The liquid foreign exchange reserves of the country have increased by $1.607 billion, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves increased to $17.655 billion by week ended on December 13, 2019 as compared with $16.048 billion a week ago.

    The foreign exchange reserves of the central bank increased $1.659 billion to $10.892 billion by week ended December 13, 2019 as compared with $9.233 billion a week ago.

    The reserves held by the commercial banks declined nominally to $6.762 billion by December 13, 2019 as compared with $6.814 billion a week ago.

  • Equity market plunges by 948 points on detailed judgment in treason case

    Equity market plunges by 948 points on detailed judgment in treason case

    KARACHI: The equity market plunged by 948 points on Thursday following detailed judgment release by a special court in high treason case.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,655 points as against 41,604 points showing a decline of 948 points.

    Analysts at Arif Habib Limited said that the market take a major plunge today upon release of detailed judgment of Pervez Musharraf that caused panic among investors and raised concern about the ongoing spat between the State Institutions.

    Besides, start of roll-over week is also close which along with situation at border cautioned investors to better book profits than hold positions. The index dropped 1189 points during the session, besides an increase of 193 points, earlier in the session.

    Buying activity was observed in MoC that helped recovery of ~250 points, closing the index at -948 points. O&GMCs garnered most volume with 30.9 million shares followed by Vanaspati (26.4 million) and Cement (25.9 million). Among scrips, UNITY realized trading volume of 26.4 million shares, followed by HASCOLR1 (13.2 million) and FFL (12.6 million).

    Sectors contributing to the performance include Banks (-212 points), E&P (-172 points), Fertilizer (-94 points), Power (-68 points) and Cement (-63 points).

    Volumes declined from 276.3 million shares to 260.1 million shares (-6 percent DOD). Average traded value also declined by 7 percent to reach US$ 73.2 million as against US$ 78.5 million.

    Stocks that contributed significantly to the volumes include UNITY, HASCOLR1, FFL, EPCL and TRG, which formed 28 percent of total volumes.

    Stocks that contributed positively include SHFA (+10 points), MTL (+2 points), SPWL (+0 points), DCR (+0 points). Stocks that contributed negatively include HBL (-71 points), OGDC(-60 points), PPL (-57 points), HUBC (-54 points), and DAWH (-52 points).

  • Rupee gains four paisas amid lackluster payment demand

    Rupee gains four paisas amid lackluster payment demand

    KARACHI: The Pak Rupee made four paisas against dollar on Thursday owing to lackluster demand for import and corporate payments, dealers said.

    The rupee ended Rs154.90 to the dollar from previous day’s closing of Rs154.95 in interbank foreign exchange market.

    The dealers said that the foreign currency demand for import and corporate payments was remained lackluster.

    The foreign currency market was initiated in the range of Rs154.91 and Rs154.95. The marked witnessed day high of Rs154.91 and low of Rs154.90 and closed at Rs154.90.

    The exchange rate in open market was remained unchanged. The buying and selling of dollar was recorded at Rs154.40/Rs154.70, the same previous day’s closing, in cash ready market.

  • FBR launches sales tax invoice verification system

    FBR launches sales tax invoice verification system

    ISLAMABAD: Federal Board of Revenue (FBR) has launched online system for verification of invoices, which issued against purchases from retail outlets.

    The FBR launched the integration of sales and purchases by Tier-1 retailers with aim to encourage 100 percent invoice submission to the revenue body.

    The FBR has given deadline of December 15, 2019 to all Tier-1 retailers, who are required to integrate their Point of Sale (POS) with the FBR system for submission of sale invoice on real-time basis.

    The FBR issued following procedure for reduced sales tax on invoices issued through online system:

    • Customers visit the counter to pay for his/her shopping

    • Customer visit the counter to pay for his/her shopping

    • Counter Boy Prepare the Invoice

    • Invoice is forwarded to FBR system for invoice number

    • Fiscal Invoice is generated, encrypted and stored in FBR Sale Data Controller and returns a fiscal invoice number to POS.

    • FBR Sale Data Controller Synch. the data with FBR central server on periodic basis.

    • POS generate the QR Code for fiscal invoice.

    • The receipt is printed out from the POS and physically delivered to the customer

    • Customer receive the printed fiscal invoice and verify it from FBR System using any of proposed mode.

    • On verification of invoice, FBR system mark this invoice for 6 percent tax collection. In case of non-verification of invoice, Bill will be changed as 9 percent tax collection.

    • Customer pay the bill according to the applied tax.

  • IR commissioners empowered to issue trial registration number

    IR commissioners empowered to issue trial registration number

    KARACHI: Commissioners of Inland Revenue have been empowered to issue trial registration number to taxpayers, who failed to comply with notices issued in this regard.

    Officials in Federal Board of Revenue (FBR) said that tax laws empowered IR commissioners to enforce income tax registration.

    They said that a commissioner having jurisdiction over a case may register a person as a taxpayer where he is satisfied that the income of the person is taxable and is required to file a return of income under section 114 of Income Tax Ordinance, 2001.

    The Commissioner shall issue to the taxpayer a letter under sub-section(2) of section 181 to submit an application for registration prescribed under rule 80 along with documents specified therein within a reasonable time given in the said letter.

    In case of compliance NTN certificate shall be issued accordingly.

    “In case of failure of the taxpayer to comply with the letter issued under sub-section (2) of section 181, the Commissioner shall register the taxpayer on a Trial Registration Number (TRN) for which a serially numbered Trial Register shall be maintained by the Commissioner.”

    The Trial Register shall contain the basic information of the taxpayer like name of the person or business, available address, CNIC “if provided”, nature of income generating activity and any other information regarded useful by the Commissioner. In such case, statutory notices shall be issued for assessment of income or other legal obligation of the taxpayer under the Ordinance on TR Number:

    Provided that before allotment of Trial Registration Number the Commissioner shall verify and match the particulars of the taxpayer from the NTN Master Index to avoid duplication of registration.

    In case any assessment is made or any liability is created by the Commissioner under the Income Tax Ordinance, 2001 against the taxpayer, the Commissioner on the basis of information as contained in Trial Register, allot an NTN to the taxpayer within fifteen days of the date of completion of assessment or creation of a liability under the Ordinance.