Author: Mrs. Anjum Shahnawaz

  • Dr. Alvi orders action over misconduct with 82-year taxpayer

    Dr. Alvi orders action over misconduct with 82-year taxpayer

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, expressed dismay over misconduct of tax authorities with an 82 year old taxpayers in a refund case.

    Dr. Alvi directed the chairman of the Federal Board of Revenue (FBR) to look into the entire system of irresponsibility and corruption and take punitive action against the entire chain of decision makers involved in the case, a statement said on Sunday.

    He took exception to the decision of FBR against a senior citizen that refused him to refund a paltry sum of Rs 2,333 on frivolous grounds and dragged him into unnecessary litigation spanning over a year.

    READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

    Apologizing to the senior citizen Abdul Hamid Khan, the President said that our heads should hang in shame for the inconvenience caused by FBR to the senior citizen.

    Abdul Hamid Khan (the complainant), a senior citizen of 82 years of age, had claimed a refund of Rs 2,333 on his income tax return for the year 2020 and submitted requisite documents of advance tax deduction of the PTCL and cell phone company bills on October 19, 2020.

    The complainant e-filed refund application on October 19, 2020 followed by representation to FBR Chairman on December 24,2020.

    The Unit officer of FBR rejected his refund claim, on January 29, 2021, on the grounds that the applicant had failed to furnish the original certificates required for authentication.

    READ MORE: Alvi praises FTO role in resolving taxpayers’ complaints

    The complainant then took up the matter with the Federal Tax Ombudsman (FTO) to seek redressal of his complaint. The FTO investigated the matter and ordered FBR on June 02, 2021 to revisit the impugned order ,dated January 19, 2021, and pass a fresh order, under section 170(4) of the ordinance, after providing the complainant the opportunity for hearing as per law.

    It further ordered to identify and initiate disciplinary proceedings against the official who passed the impugned order in derogation of the law and procedures and dragged the ageing taxpayer into unnecessary litigation as well as report compliance within 45 days.

    Consequently, FBR filed a representation with the President against the original order of FTO on 24.06.2021. President Dr Arif Alvi rejected the representation of FBR.

    The President said that the complainant had admittedly furnished copies of advance tax as per certificates collected by telephone authorities. In case the Unit Officer was not satisfied with the copies of certificates, he could have not only got the same verified from the PTCL and Cell Phone Company but verification was also possible through online system.

    He observed that it was the responsibility of the duty officer to get the deduction of tax verified from the deducting authorities irrespective of certificates being original or copies/system generated, if the same were not reflecting in the system for one or the other reason.

    READ MORE: PTCL registers 7.3% revenue growth for nine months

    The President termed the failure of the officer to verify the bills from PTCL and the cell phone company through the online system as shirking from responsibility and an act of maladministration.

    He upheld that the act of the officer was a mockery and travesty of law, procedure and instructions of FBR.

    It appeared that unlawful treatment was meted out in the instant case with a view to irritate and humiliate the ageing pensioner.

    While rejecting the representation of FBR, the President said that this must be the most pitiful and shameful use of bureaucratic authority and regretted that the FBR official had wasted the time of his department, the Tax Ombudsman and the President of Pakistan over a paltry sum of Rs 2,333 and the matter had lingered for over a year.

    READ MORE: FBR announces winners of first POS prize draw

    He also deplored that no one in the long chain of bureaucrats in FBR deliberated over the issue to take note of the unfairness, pettiness and superfluousness of the matter.

    “Punitive action must be taken along the entire line of decision-makers in this case and Chairman FBR should ensure that those responsible, in particular, and others, in general, go through courses to teach them priorities and courtesies,” he directed.

  • Reward to IR officials, whistleblowers on tax detection

    Reward to IR officials, whistleblowers on tax detection

    The Federal Board of Revenue (FBR) has prescribed procedure for grant of reward to Inland Revenue officials and whistleblowers for detection of tax evasion.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 72C and 72D of the Sales Tax Act, 1990:

    72C. Reward to Inland Revenue Officers and Officials.– (1) In cases involving concealment or evasion of sales tax and other taxes, cash reward shall be sanctioned to the officers and officials of Inland Revenue for their meritorious conduct in such cases and to the informer providing credible information leading to such detection, as may be prescribed by the Board, only after realization of part or whole of a taxes involve in such cases.

    (2) The Board may, by notification in the official Gazette, prescribed the procedure in this behalf and specify the apportionment of reward sanctioned under this section for individual performance or to collective welfare of the officers and officials of Inland Revenue.

    72D. Reward to whistleblowers.– (1) The Board may sanction reward to whistleblowers in cases of concealment or evasion of tax, tax fraud, corruption or misconduct providing credible information leading to such detection of evasion of tax fraud.

    (2) The Board may, by notification in the official Gazette, prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section for whistleblowers.

    (3) The claim for reward by the whistleblower shall be rejected, if-

    (a) the information provided is of no value;

    (b) the Board already had the information;

    (c) the information was available in public records; or

    (d) no collection of taxes is made from the information provided from which the Board can pay the reward.

    (4) For the purpose of this section, “whistleblower” means a person who reports concealment or evasion of sales tax and tax fraud leading to detection or collection of taxes, fraud, corruption or misconduct, to the competent authority having power to take action against the person or a sales tax authority committing fraud, corruption, misconduct, or involved in concealment or evasion of taxes.

    (Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

  • FBR announces winners of first POS prize draw

    FBR announces winners of first POS prize draw

    ISLAMABAD: The Federal Board of Revenue (FBR) on Saturday announced the winners of the first draw of prize scheme on invoices obtained from Point of Sales (POS).

    According to the FBR, the bumper prize of Rs one million has been won by Tanveer Ahmed.

    The second prize of two each Rs0.5 million has been won by Aftab Ahmed and Farhan Akram.

    For further details please download the draw

    The FBR said that thousands of prizes worth a hundred thousand rupees had been distributed through the draw.

    Those buying from POS integrated retailers in the month of December 2021 were included in the balloting.

    The revenue body encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.

    READ MORE: Prize scheme on invoices issued by retailers

    The FBR previously issued a procedure for participating in the prize scheme.

    The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.

    The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.

    The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.

    In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.

    READ MORE: FBR launches prize scheme for POS customers

    Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.

    In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.

    The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.

    Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.

    The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.

  • Pakistan’s petrol price rises to record high at Rs147.83

    Pakistan’s petrol price rises to record high at Rs147.83

    ISLAMABAD: The petrol price in Pakistan has been increased to a record high of Rs147.83 per liter, said a statement issued by the finance ministry on Saturday.

    The government announced to increase prices of all petroleum products with effect from January 16, 2022.

    READ MORE: Prices of all POL products increased to wish New Year

    According to the notification, the price of petrol has been increased by Rs3.01 to Rs147.83 per liter from Rs144.82.

    The price of high speed diesel (HSD) has been increased by Rs3 to rs144.62 per liter from Rs141.62.

    The rate of kerosene has been enhanced by Rs3 to Rs116.48 per liter from Rs113.48.

    READ MORE: Petrol price reduces to Rs140.82 per liter

    The price of light diesel oil has been increased by Rs 3.33 toRs114.54 per liter from Rs111.21.

    According to the notification the decision to enhance domestic prices of petroleum products because the international oil price had registered 6.2 per cent during the last week. Presently, at the highest level since last year.

    The existing sales tax rate and petroleum levy on various petroleum products are much below the budgeted targets.

    READ MORE: Govt. keeps petroleum prices unchanged

    The finance ministry said that against the recommendations of Oil and Gas Regulatory Authority (OGRA) for increase of Rs5.52 per liter in petrol and Rs6.19/liter in high speed diesel prices, the Prime Minister had directed to absorb at the international prices through further cut in sales tax from last fortnight.

    The finance ministry will take Rs2.6 billion revenue hit due to reduced sales tax rates.

    Therefore, the government has decided to make partial increase in the prices of the petroleum products in order to provide relief to the end consumers.

    READ MORE: Petroleum prices kept unchanged for next fortnight

  • Finance (Supplementary) Bill gets presidential approval

    Finance (Supplementary) Bill gets presidential approval

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, on Saturday granted approval to the Finance (Supplementary) Bill. The National Assembly on January 13, 2022 adopted the finance supplementary bill tabled by the government.

    With the ascent of the President, the financial proposals of the government are not implemented.

    READ MORE: Supplementary bill aimed at documenting economy: Tarin

    The government on the demand of International Monetary Fund (IMF) withdrew tax exemptions to the tune of Rs343 billion.

    The bill was tabled on December 30, 2021 in the lower house in order to get approval before the schedule meeting of the IMF board on January 12, 2022.

    READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin

    The IMF Executive Board was to meet on January 12, 2022 for approval of above $1 billion tranche under $6 billion Extended Fund Facility (EFF).

    The government had realized it would not able to get approval by IMF board meeting. Therefore, the finance ministry requested the IMF to defer the meeting date by month-end. The lending agency approved the request and now this meeting likely to be held by January 28, 2022.

    READ MORE: Tarin warns tax evaders of strict actions

  • Pak Navy, Customs confiscate huge cache of liquor

    Pak Navy, Customs confiscate huge cache of liquor

    Pakistan Navy and Pakistan Customs successfully intercepted and confiscated a substantial quantity of foreign-origin smuggled liquor in a joint open-sea operation.

    (more…)
  • Rules amended for sales tax de-registration

    Rules amended for sales tax de-registration

    ISLAMABAD: The Federal Board of Revenue (FBR) has amended rules related to sales tax de-registration of a person or a company.

    The FBR issued SRO 51(I)/2022 dated January 13, 2022 to amend Sales Tax Rules, 2006. Rule 11 of the Sales Tax Rules, 2006 deals with de-registration.

    Under this rule, sub-rule (1) every registered person who ceases to carry on his business or whose supplies become exempt from tax, or who ceases to remain registered shall apply to the Commissioner Inland Revenue having jurisdiction for cancellation of his registration, and the Commissioner, on such application or on its own initiative, may issue order of de-registration or cancellation of the registration of such person from such date as may be specified, but not later than ninety days from the date of such applicant or the date all the dues outstanding against such person are deposited by him, whichever is later and such person shall caused to be de-registered through computerized system accordingly.

    READ MORE: Sales Tax Act, 1990 updated till June 30, 2021

    The FBR made amendment in sub-rule 2 of Rule 11. The sub-rule 2 explains that The Commissioner, upon completion of any audit proceedings or inquiry which may have been initiated consequent upon the application of the registered person for de-registration, shall complete the proceedings or inquiry within ninety days from the date of application and direct the applicant to discharge any outstanding liability which may have been raised therein by filing a final return under section 28 of the Sales Tax Act, 1990:

    Provided that the person applying for de-registration shall not be de-registered unless he provides record for the purpose of audit or inquiry.

    READ MORE: Apex court suspends order in tax notices to overseas assets

    Through the SRO the FBR inserted sub-rule 2A and 2B to the sub-rule 2.

    According to sub-rule 2A: “After receipt of the application for de-registration by the Commissioner Inland Revenue having jurisdiction, the obligation of the registered person to file monthly sales tax return under Section 26 of the Sales Tax Act, 1990 shall remain suspended, until he is de-registered or his application is rejected, as the case may be.”

    The sub-rule 2B explains: “Where the Commissioner Inland Revenue desires to conduct audit or inquiry of the applicant to determine his liability, he shall require the applicant, in writing, to provide the requisite records. On receipts of the complete requisite records, entry to this effect shall be made in the computerized system, which shall automatically de-register the applicant on expiry of ninety days thereof, subject to provision of sub-rule (4).”

    READ MORE: Retail price of sugar may be abolished for sales tax

    The sub-rule (4) explains that the obligations and liabilities of the person whose registration is cancelled under sub-rule (1) relating to the period when he conducted business as a registered person shall not be affected by the fact that his registration has been cancelled or that he has ceased to be a registered person.

  • FBR terminates job of IRS officer on misconduct

    FBR terminates job of IRS officer on misconduct

    ISLAMABAD: The Federal Board of Revenue (FBR) has terminated the job of BS-17 official of Inland Revenue Service (IRS) on the charges of misconduct.

    The FBR issued an office order on Friday to notify the major penalty of ‘dismissal from service’ upon the officer.

    READ MORE: Senior FBR auditor awarded ‘dismissal from service’ for corruption

    The FBR said that disciplinary proceedings were initiated against Masud Humayun (IRS/BS-17/Prob), posted as Assistant Director, Additional Directorate of Internal Audit (IR) Gujranwala on account of multiple offences including exchange of Answer Book, cheating, lying, deceitful conduct and manhandling of the examination supervisor, a BS-19 officer while taking paper of FPO Exam i.e. Principle of Accountancy and unauthorized absence w.e.f. 17.08.2020; constituting “inefficiency” and “misconduct” in terms the Civil Servants (Efficiency and Discipline) Rules, 2020.

    READ MORE: Customs official awarded ‘dismissal from service’ for misconduct

    The Revenue Secretary/Chairman, FBR, while dispensing with holding of formal inquiry under Civil Servants (E&D) Rules, 2020, issued an Order under Rule7 along with Show Cause Notice dated October 12, 2021. However, no reply, to the said show cause notice (within the stipulated time) was received.

    The FBR chairman Chairman after examining the facts and legal position of the case, found the accused officer guilty of the charges of “inefficiency” and “misconduct” levelled against him.

    READ MORE: Three FBR officials awarded ‘dismissal from service’ for misconduct

    The FBR chairman after having considered all aspects of the case, has decided to impose major penalty of “dismissal from service” upon Masud Humayun (IRS-BS-17/Prob) under the Civil Servants (E&D) Rules, 2020.

    The period of his unauthorized absence from duty w.e.f. August 17, 2020 shall be treated as extraordinary leave without pay.

    Masud Humayun / the accused officer, shall have the right to file departmental appeal within a period of thirty (30) days from the date of issuance of this notification.

    READ MORE: FBR auditor awarded dismissal from service for availing NAB plea bargain

  • MoC invites tariff proposals for budget 2022/2023

    MoC invites tariff proposals for budget 2022/2023

    The Ministry of Commerce (MoC) has opened the floor for budget proposals for the fiscal year 2022/2023, specifically focusing on potential changes in customs tariff rates.

    (more…)
  • Supplementary bill aimed at documenting economy: Tarin

    Supplementary bill aimed at documenting economy: Tarin

    ISLAMABAD: The Finance (Supplementary) Bill, 2021 is aimed at documentation of economy instead generating revenue, Finance Minister Shaukat Tarin said on Thursday.

    (more…)