Pkrevenue.com

Day: November 10, 2020

  • KTBA expresses concerns over delay in form issuance for taxpayer profile update

    KTBA expresses concerns over delay in form issuance for taxpayer profile update

    KARACHI: Tax practitioners on Tuesday expressed serious concern over delay by Federal Board of Revenue (FBR) in issuing forms for mandatory profile update by taxpayers.

    Karachi Tax Bar Association (KTBA) in a letter sent to Member Inland Revenue Operations discussed the delay by the FBR in issuing forms for mandatory profile update by taxpayers.

    The KTBA said that Section 114A of the Income Tax Ordinance, 2001 was introduced through Finance Act, 2020.

    The profile update has been made mandatory for taxpayers to electronically update certain information including bank accounts, utility connections, details of business premises etc.

    The deadline for electronically filing the taxpayers profile form in case of persons already registered before September 30, 2020 is on or before December 31, 2020. In case of a person registered after September 30, 2020 the registration must be within 90 days of the registration.

    Further, failure to file the form would not only entail punitive penalty but the taxpayers would also be excluded from the Active Taxpayers List (ATL).

    Till today the form as required to be filed under Section 114A has not been prescribed let alone its availability on IRIS.

    The KTBA pointed out the gravity of the situation, as updating the profiles of almost 2.5 million taxpayers and that too with the comprehensive information is a stupendous and time consuming exercise for the counsels of the taxpayers and that too at the time when the counsels of the taxpayers are engrossed in filing the tax returns as well as wealth statements, the last date of which is falling due on December 08, 2020.

    It is a must exercise to be undertaken like in any developed tax regime in the world, yet the non-availability of prescribed forms and the facility of the same on IRIS is highly unexpected and rather damaging. “The is coupled with the fact that with limited functionality on IRIS in these times of return filing, it is feared that IRIS may malfunction disrupting the timelines to be adhered for filing the income tax return and updation of taxpayer’s profile together.”

    The KTBA urged Member IR Operations to immediately take measures to prescribed the form as required under Section 114A of the Ordinance and also give directions to provide the same in IRIS for updation of taxpayer’s profile with the directions to field offices not to issue penalty notices as the delay is not on part of the taxpayers.

  • Rate of advance income tax on education fee

    Rate of advance income tax on education fee

    ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of advance income tax to be collected by educational at the time of preparing fee challan during tax year 2021 (July 01, 2020 to June 30, 2021).

    The FBR issued Income Tax Ordinance, 2001 (updated up to June 30, 2020) after incorporating amendments brought through Finance Act, 2020.

    The FBR updated the rate of collection of tax under section 236I of Income Tax Ordinance, 2001, which shall be 5 percent of the amount of fee.

    Following is the text of Section 236I under which the advance tax to be collected by educational institutions:

    236I. Collection of advance tax by educational institutions.— (1) There shall be collected advance tax from a person not appearing on the active taxpayers’ list at the rate specified in Division XVI of Part-IV of the First Schedule on the amount of fee paid to an educational institution.

    (2) The person preparing fee voucher or challan shall charge advance tax under sub-section (1) in the manner the fee is charged.

    (3) Advance tax under this section shall not be collected from a person on an amount which is paid by way of scholarship or where annual fee does not exceed two hundred thousand rupees.

    (4) The term “fee” includes, tuition fee and all charges received by the educational institution, by whatever name called, excluding the amount which is refundable.

    (5) Tax collected under this section shall be adjustable against the tax liability of either of the parents or guardian making payment of the fee.

    (6) Advance tax under this section shall not be collected from a person who is a non-resident and,—

    (i) furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days;

    (ii) furnishes a certificate that he has no Pakistan-source income; and

    (iii) the fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.

  • FBR advises taxpayers not to share financial information to fraudulent SMS

    FBR advises taxpayers not to share financial information to fraudulent SMS

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday advised taxpayers not to share their information of credit cards, banks and other financial accounts to fake and fraudulent SMS.

    “FBR does not send SMS to the taxpayers requesting for calling on specific numbers and asking for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts,” the FBR said.

    There are numerous attempts by individuals & groups to solicit personal information from unsuspecting users by employing social engineering techniques.

    Various SMS are crafted to appear as if they have been sent from a legitimate organization or known individual.

    These SMS often attempt to entice users to call at specific mobile numbers and are asked to provide personal information, such as account usernames and passwords, which can further expose them to future compromises.

    FBR never sends SMS on the taxpayer mobile numbers to obtain taxpayer’s banking information in lieu of facilitating a refund to the taxpayer or any other activity associated with an individual’s bank account are extremely dangerous with an intent to defraud the individual.

    FBR strictly advises the taxpayer from calling on the mobile number specified in the SMS and disclosing any information especially related to your bank accounts.

  • Market based exchange rate helps shrinking current account deficit: SBP governor

    Market based exchange rate helps shrinking current account deficit: SBP governor

    KARACHI: Dr Reza Baqir, Governor of State Bank of Pakistan (SBP) has said that market based exchange rate helped shrinking current account deficit.

    In an interactive session with leading foreign investors, members of the Overseas Investors Chamber of Commerce and Industry (OICCI), he shared an overview of the current Economic Outlook of Pakistan and informed: “since, June 2019, Pakistan has transitioned to a market-based exchange rate regime, resulting for the first time ever in an orderly two-way movement of exchange rates in the country, which has led to a significant shrinking of the current account deficit, and better fundamentals facilitated capital inflows.”

    The fiscal deficit narrowed to 3.8 percent of GDP in July-March FY20 with the current account balance in surplus for the first time since 2016”.

    He added: “a year ago SBP was being perceived as inflicting tough stabilization measures after Pakistan had successfully started an economic reform program to address external and fiscal imbalances and later after the onset of COVID-19 the Government and central bank gave a timely and calibrated economic response without compromising buffers and as a result today the focus is on economic growth of the country,” a statement issued by OICCI quoted SBP governor as saying.

    Dr Baqir also shared that overall Rs1.73 trillion or 4.1 percent of the GDP of Pakistan was injected by SBP in the economy to support individuals and businesses during COVID-19 through various proactive measures, including dramatic reduction in interest rates from 13.25 percent to 7 percent, loan deferment, employment support and Rozgar Schemes.

    He further added SBP is taking appropriate and timely actions to address the ever changing economic environment.

    President OICCI, Haroon Rashid highlighted the significant economic contribution of foreign investors at OICCI, who are among the largest economic stakeholders and have invested over $ 16 billion in the past eight years and continue to have a positive view of the opportunities for investment despite the ongoing challenging economic environment in the country.

    OICCI shared with Dr Reza Baqir the key concerns of OICCI members, including delays in approval of forex payments and cumbersome documentation requirements and sought the Governor’s support in the light of SBP policy to facilitate FDI through improving Ease of Doing Business in Pakistan.

    Dr. Reza Baqir appreciated the contribution of OICCI members to the national exchequer and encouraged all members to figure out ways to increase exports and adopt import substitution practices, as it was a critical step towards moving the country out of poverty.

    “SBP is moving towards digitalization of payment processes and proactive engagement that will address the major issues systematically and facilitate the business community,” informed the Governor.

    Dr. Reza also mentioned that through an online case look-up portal, it is now possible for companies to monitor the progress of their respective cases submitted to SBP with increased transparency.

    He agreed on the need for continuous dialogue with the OICCI members and invited the OICCI members to meet the SBP leadership at regular intervals for timely resolution of their issues.

    While concluding the session, Haroon Rashid commented “OICCI members appreciated the SBP efforts towards continuous improvement in the economy”, and presented a comprehensive list of recommendations to facilitate ease of doing business in Pakistan.

  • Stock market gains 369 points on COVID vaccines announcement

    Stock market gains 369 points on COVID vaccines announcement

    The stock market experienced a surge on Tuesday, gaining 369 points amid positive sentiment following an announcement from an international pharmaceutical company regarding a new COVID-19 vaccine.

    (more…)
  • PSMA, 84 sugar mills served show cause notices for cartelization

    PSMA, 84 sugar mills served show cause notices for cartelization

    ISLAMABAD: The Competition Commission of Pakistan (CCP) on Tuesday said it issued show cause notices to 84 sugar mills and their association for cartelization.

    The CCP said that it had issued show cause notices to Pakistan Sugar Mills Association (PSMA) and its 84 member mills on multiple instances of prima facie cartelization in violation of Section 4 of the Competition Act, 2010.

    The show cause notices have been issued after the CCP decided to initiate proceedings under Section 30 of the Act on the recommendations of an enquiry into the anti-competitive activities in the sugar sector.

    The CCP’s enquiry has found multiple instances where the Pakistan Sugar Mills Association (PSMA) is acting as a front-runner for cartelization in the sugar industry.

    “Evidence gathered during search and inspections conducted on the premises of PSMA and JDW Sugar Mills seems to suggest these anti-competitive activities have continued since 2010.”

    The impounded data included exchange of emails between a senior official of one of the Sugar Mill (Member of PSMA) and PSMA Punjab zone office bearers regarding sensitive commercial information such as mill-wise, district-wise sugar stock position, and even the quantity of cane crushed, sugar produced, recovery percentage, carry forward old/raw sugar, total sugar, quantity sold, balance and sold percentage.

    “Moreover, an analysis of the WhatsApp messages exchanged in a group of PSMA officials, the same senior official of that Sugar Mill was found to be in constant communication with regard to price and stock related data of sugar mills.

    “The impounded data indicated the senior official’s continued involvement in sharing/receiving sensitive information regarding sugar industry since 2012 when he was nominated as the focal person for coordinating the sugar stock position by PSMA,” the CCP said.

    Furthermore, the PSMA’s platform was also being used by member sugar mills to collectively make commercially sensitive decisions such as reduction in domestic stocks/supplies of sugar, which led to an increase in or maintenance of desired price levels in the relevant market.

    PSMA and its members have been provided an opportunity of hearing to plead their case with reference to the prima facie specific violations indicated therein.

    PSMA and all 84 sugar mills prima facie violated the Act by collectively deciding to export sugar and thereby fixing the quantities of sugar to be supplied in Pakistan.

    Similarly, they also violated the Act by reducing stocks of sugar through exports; hence collectively raised and maintained prices of sugar in Pakistan.

    Moreover, in the crushing season 2019-20, 15 sugar mills in Punjab under the auspices of PSMA, collectively decided to delay crushing of sugarcane leading to reduction in quantity supplied in the market.

    In Punjab, 45 sugar mills used PSMA’s platform to share business sensitive information with each other.

    Lastly, PSMA and sugar mills divided quantities of sugar in tenders issued by USC on various occasions.

    “The CCP found 19 mills in Punjab to have violated the Act with reference to a tender dated 2019 whereas, 30 mills from all over Pakistan have been issued show cause for an earlier tender.”

    The findings of CCP’s previous sugar enquiry report in 2009 had found that PSMA and its members had engaged in fixing of prices and collusion in the purchase of sugarcane, production of sugar, and sale or trade of sugar.

    In the instant matter it appears that PSMA and its member mills sought to keep prices stable, inter alia, by controlling supply of sugar available in the domestic market.

  • Rupee advances by 22 paisas; dollar slips to Rs158.69

    Rupee advances by 22 paisas; dollar slips to Rs158.69

    KARACHI: The Pak Rupee gained 22 paisas against dollar on Tuesday owing improved remittances and export receipts.

    The rupee ended Rs158.69 to the dollar from previous day’s closing of Rs158.91 in interbank foreign exchange market.

    The currency dealers said that importers were cautious in placing new orders due to the second wave of coronavirus across the glob.

    They further said that the inflows of export receipts and workers’ remittances are helping the local unit to improve levels.

    The rupee hit an all-time low of Rs168 on August 26, 2020.

    According to Pakistan Bureau of Statistics (PBS) the exports during the month of October 2020 increased by 3.07 percent to $2.08 billion as compared with $2.02 billion in the same month of the last year.

    Imports for the month fell by 5.73 percent to $3.82 billion as compared with $4.05 billion in the same month of the last year.

    The trade deficit reduced by 14.46 percent to $1.74 billion in October 2020 as compared with a trade deficit of $2.03 billion in the same month of the last year.

  • Pakistan urgently needs solar, wind energy expansion to lower power cost: WB

    Pakistan urgently needs solar, wind energy expansion to lower power cost: WB

    ISLAMABAD: The World Bank (WB) on Tuesday launched a study suggesting that Pakistan should quickly implement a major scale-up of solar and wind generation.

    (more…)
  • FBR warns return filers against incorrect information

    FBR warns return filers against incorrect information

    ISLAMABAD: Federal Board of Revenue (FBR) has warned individuals, who are return filers, against harsh action for providing incorrect information of taxable income.

    The FBR on Tuesday said that it had acquired vital information about the income and expenditure of filers and non-filers.

    The revenue board advised return filers to visit the official information portal to view details of undeclared income and assets details available with the database of the FBR.

    The FBR also advised the return filers to correct their information before any action under the law was initiated against individuals for hiding taxable income.

    The FBR said that income tax return filing is mandatory to those persons who had obtained National Tax Number (NTN). Therefore, such persons should file their returns to avoid penal action.

    The FBR asked unregistered paying withholding tax should also apply for registration and file their income tax return.

    It is important to note that the last date for filing income tax returns for the tax year 2020 is December 08, 2020. The date was already extended by the FBR from September 30, 2020.

    The FBR made it clear that no further extension would be granted beyond December 08, 2020.