Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FATF gives Pakistan four months to comply with action plan

    FATF gives Pakistan four months to comply with action plan

    ISLAMABAD: Financial Action Task Force (FATF) on Friday set a deadline of four months for Pakistan to improve action plan against laundering and terror financing.

    At a press conference in Paris, France the officials of FATF expressed concerns over implementation of action plan by the Pakistani authorities.

    FATF strongly urged Pakistan to swiftly complete its full action plan by February 2020. Otherwise, should significant and sustainable progress not be made across the full range of its action plan by the next Plenary.

    It has been observed that action taken by Pakistan was not sufficient to address its Terror Financing risks. These include remaining deficiencies in demonstrating a sufficient understanding of Pakistan’s transnational Terror Financing risks.

    Pakistan’s failure to complete its action plan in line with the agreed timelines and in light of the terror financing risks emanating from the jurisdiction.

    To date, Pakistan has only largely addressed five of 27 action items, with varying levels of progress made on the rest of the action plan.

    In a statement, the ministry of finance said that the FATF Plenary meeting was held in Paris from 13-18 October 2019. The Pakistan delegation was led by Muhammad Hammad Azhar, Minister for Economic Affairs Division.

    The FATF meeting considered Pakistan’s progress report on the FATF Action Plan and Pakistan’s APG Mutual Evaluation report (MER).

    Pakistan’s delegation reaffirmed its political commitment to fully implement the Action Plan.

    The Plenary meeting decided to maintain status quo on the FATF Action Plan and allow the usual 12 months observation period for the APG MER.

    The delegation also held sideline meetings with various delegations and briefed them about the progress made by Pakistan on the FATF Action Plan and steps taken for strengthening its AML/CFT framework.

    A session on technical assistance and training needs of Pakistan was also organized in collaboration with UNODC and APG Secretariat which was attended by a number of interested countries and multilateral agencies including China, USA, UK, Canada, Japan, EU, World Bank, IMF, ADB, and UNODC.

  • Sellers must retain CNIC information for six years

    Sellers must retain CNIC information for six years

    ISLAMABAD: Sales tax registered persons selling goods are required to keep record of Computerized National Identity Card (CNIC) details for six years.

    Sources in Federal Board of Revenue (FBR) said that the condition of CNIC against sales of goods had been implemented from August 01, 2019. “All the details of CNIC must be maintained by the suppliers for examination and scrutiny purposes,” a tax official said.

    Under Section 24 of the Sales Tax Act, 1990, the records and documents must be retained for six years.

    “A person, who is required to maintain any record or documents under this Act, shall retain the record and documents for a period of six years after the end of the tax period to which such record or documents relate or till such further period the final decision in any proceedings including proceedings for assessment, appeal, revision, reference, petition and any proceedings before an alternative Dispute Resolution Committee is finalized.”

    The government through Finance Act, 2019 introduced significant changes to document the supply chain and made mandatory the information of CNIC on sales under Section 23 of the Sales Tax Act, 1990.

    Section 23: Tax Invoices

    Sub-Section (1): A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, in Urdu or English language, namely: –

    (a) name, address and registration number of the supplier;

    (b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.

    Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing:

    Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;

    (c) date of issue of invoice;

    (d) description including count, denier and construction in case of textile yarn and fabric, and quantity of goods;

    (e) value exclusive of tax;

    (f) amount of sales tax; and

    (g) value inclusive of tax:

    Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons;

    Provided further that not more than one tax invoice shall be issued for a taxable supply:

    Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.

    Sub-Section (2): No person other than a registered person or a person paying retail tax shall issue an invoice under this section.

    Sub-Section (3): A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.

    Sub-Section (4): The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.

  • Gwadar Port ready for Afghan transit trade handling

    Gwadar Port ready for Afghan transit trade handling

    ISLAMABAD: The ministry of commerce has said that Gwadar Port is ready for bulk cargo handling to and from Afghanistan.

    In a notification issued October 15, 2019, the ministry said that the bulk cargoes imported at Gwadar Port for onward transit to Afghanistan will be transported in containers after stuffing/loading the same into containers of international specifications.

    The ministry has informed about the decision to Pakistan Ship Agents Association, Pakistan International Freight Forwarders Association, National Logistic Cell, All Pakistan Shipping Association.

  • Incomplete particulars to make furnished annual return invalid

    Incomplete particulars to make furnished annual return invalid

    KARACHI: An income tax return filed by a taxpayer will be treated as invalid if the taxpayer has failed to provide complete particulars as required in return form.

    Sources in Federal Board of Revenue (FBR) said that taxpayers should carefully make entries in income tax return form and wealth statement form before submitting.

    The sources said that Section 120(3) of Income Tax Ordinance, 2001 stated that a commissioner of Inland Revenue is required to issue a notice to person, who had filed income tax return with incomplete particulars.

    The Section 120 of the Ordinance, 2001 explained the assessment of taxpayers on the basis of submitted income and assets declaration.

    Section 120: Assessments

    Sub-Section (1): Where a taxpayer has furnished a complete return of income (other than a revised return under sub-section (6) of section 114) for a tax year ending on or after the 1st day of July, 2002,—

    (a) the Commissioner shall be taken to have made an assessment of taxable income for that tax year, and the tax due thereon, equal to those respective amounts specified in the return; and

    (b) the return shall be taken for all purposes of this Ordinance to be an assessment order issued to the taxpayer by the Commissioner on the day the return was furnished.

    Sub-Section (1A): Notwithstanding the provisions of sub-section (1), the Commissioner may conduct audit of the income tax affairs of a person under section 177 and all the provisions of that section shall apply accordingly.

    Sub-Section (2): A return of income shall be taken to be complete if it is in accordance with the provisions of sub-section (2) of section 114.

    Sub-Section (3): Where the return of income furnished is not complete, the Commissioner shall issue a notice to the taxpayer informing him of the deficiencies (other than incorrect amount of tax payable on taxable income, as specified in the return, or short payment of tax payable) and directing him to provide such information, particulars, statement or documents by such date specified in the notice.

    Sub-Section (4): Where a taxpayer fails to fully comply, by the due date, with the requirements of the notice under sub-section (3), the return furnished shall be treated as an invalid return as if it had not been furnished.

    Sub-Section (5): Where, in response to a notice under sub-section (3), the taxpayer has, by the due date, fully complied with the requirements of the notice, the return furnished shall be treated to be complete on the day it was furnished and the provisions of sub-section (1) shall apply accordingly.

    Sub-Section (6): No notice under sub-section (3) shall be issued after the expiry of one hundred and eighty days from the end of the financial year in which return was furnished, and the provisions of sub-section (1) shall apply accordingly.

  • Importers require filing declaration within 10 days of goods arrival

    Importers require filing declaration within 10 days of goods arrival

    KARACHI: Importers are required to file goods declaration within 10 days of arrival of goods at the port of entry.

    The Federal Board of Revenue (FBR) issued Customs Act, 1969 update till June 30, 2019 incorporating changes brought through Finance Act, 2019.

    Prior to Finance Act, 2019 the importers were allowed to file goods declaration within 15 days.

    Section 79 of the Customs Act, 1969 described the filing of declaration and assessment.

    Section 79: Declaration and assessment for home consumption or warehousing or transshipment.-

    Sub-Section (1): The owner of any imported goods shall make entry of such goods for home consumption or warehousing or transshipment or for any other approved purposes, within ten days of the arrival of the goods, by,-

    (a) filing a true declaration of goods, giving therein complete and correct particulars of such goods, duly supported by commercial invoice, bill of lading or airway bill, packing list or any other document required for clearance of such goods in such form and manner as the Board may prescribe ; and

    (b) assessing and paying his liability of duty, taxes and other charges thereon, in case of a registered user of the Customs Computerized System:

    Provided that if, in case of used goods, before filing of goods declaration, the owner makes a request to an officer of customs not below the rank of an Additional Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:

    Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.

    Explanation.- For the purposes of this clause, the assessment and paying of duty, taxes and other charges in respect of transshipment shall be at the port of destination.

    Sub-Section (2): If an officer, not below the rank of Additional Collector of Customs, is satisfied that the rate of customs duty is not adversely affected and that there was no intention to defraud, he may, in exceptional circumstances and for reasons to be recorded in writing, permit, substitution of a goods declaration for home consumption for a goods declaration for warehousing or vice versa.

    Sub-Section (3): An officer of Customs, not below the rank of Assistant Collector of Customs, may in case of goods requiring immediate release allow release thereof prior to presentation of a goods declaration subject to such conditions and restrictions as may be prescribed by the Board.

  • NAB establishes AML/CFT cell

    NAB establishes AML/CFT cell

    ISLAMABAD: National Accountability Bureau (NAB) on Thursday established Anti-Money Laundering (AML)/ Combating the Financing of Terrorism (CFT) cell at the bureau.

    The cell will be headed by Zahir Shah, Director General, Operation, NAB Headquarters, Islamabad and would be comprised of the following officers:

    01. Zafar Iqbal, Director Monitoring

    02. Mufti Abdul Haq, Additional Director/Desk Officer

    03. Jahanzeb Fareed, Banking Expert

    04. Sohail Ahmed, Banking Expert

    05. Nasir Mehmood Mughal, Senior Legal Consultant (Prosecution Division)

    The main responsibilities of the cell would include compliance, monitoring, analysis and coordination with national FATF Secretariat and relevant stakeholders.

  • CRTO Karachi sets up monitoring cell to identify fake, flying invoices

    CRTO Karachi sets up monitoring cell to identify fake, flying invoices

    KARACHI: In order to identify taxpayers involved in fake and flying invoices, a monitoring cell has been established at Corporate Regional Tax Office (CRTO) Karachi.

    The cell has been established keeping in view the declining trend in sales tax payments during first quarter (July – September) 2019/2020.

    The monitoring cell has been assigned to identify cases involved in fake and flying invoices, fake transactions, sales suppressions and streamline tax mechanism.

    Jafar Raza Kazmi, Commissioner Inland Revenue, Zone-IV of the CRTO has been assigned to supervise the monitoring cell.

    According to a notification issued on Thursday, the cell would perform the following functions:

    — To analyze / monitor sales tax monthly sales tax returns to identify cases where action under Section 38 of the Sales Tax Act, 1990 is required to be taken on the basis of abnormalities causing huge decline in sales tax payment etc.

    — The cell shall prepare desk audit report showing details of records / data scrutinized discrepancies observed and potential revenue involved.

    — After due diligence, the cell shall take action under Section 38 of the Sales Tax Act, 1990 against the person as per law and submit the detailed report with impact of revenue to the chief commissioner CRTO Karachi.

    The monitoring cell will focus and take such cases for action under Section 38 of the Sales Tax Act, 1990, which may yield substantial revenue.

    The cell has been strictly advised that action in specific cases should be taken with reasonable interval of time. The exercise should not be made frequently and be restricted to cases involving sizeable revenue leakages.

    Section 38: Authorised officers to have access to premises, stocks, accounts and records –

    Sub-Section (1) Any officer authorised in this behalf by the Board or the Commissioner shall have free access to business or manufacturing premises, registered office or any other place where any stocks, business records or documents required under this Act are kept or maintained belonging to any registered person or a person liable for registration or whose business activities are covered under this Act or who may be required for any inquiry or investigation in any tax fraud committed by him or his agent or any other person; and such officer may, at any time, inspect the goods, stocks, records, data, documents, correspondence, accounts and statements, utility bills, bank statements, information regarding nature and sources of funds or assets with which his business is financed, and any other records or documents, including those which are required under any of the Federal, Provincial or local laws maintained in any form or mode and may take into his custody such records, statements, diskettes, documents or any part thereof, in original or copies thereof in such form as the authorised officer may deem fit against a signed receipt.

    Sub-Section (2): The registered person, his agent or any other person specified in sub-section (1) shall be bound to answer any question or furnish such information or explanation as may be asked by the authorised officer.

    (3) The department of’ direct and indirect taxes or any other Government department, local bodies, autonomous bodies, corporations or such other institutions shall supply requisite information and render necessary assistance to the authorised officer in the course of inquiry or investigation under this section.

  • Pakistan’s weekly forex reserves increase by $149.7 million

    Pakistan’s weekly forex reserves increase by $149.7 million

    KARACHI: The total liquid foreign exchange reserves of the country have increased by $149.7 million to $15.142 billion by week ended October 11, 2019 as compared with $14.992 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The reserves held by State Bank witnessed increase of $56.1 million to $7.813 billion by week ended October 11 as compared with $7.757 billion.

    The reserves held by commercial banks increased by $93.6 million to $7.329 billion as compared with $7.235 billion.

  • FBR launches Urdu version official website

    FBR launches Urdu version official website

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday launched its official website in national language in order to aware large population of the country to understand taxation issues.

    Chairman FBR Syed Muhammad Shabbar Zaidi inaugurated the Urdu website of FBR.

    The Urdu version of website has been launched to facilitate the taxpayers.

    Member FATE Mustafa Sajjad Hassan and Chief FATE Tehmina Aamer briefed the Chairman FBR about the features of the Urdu website.

    The senior officers of FBR HQ, Member Administration Nausheen Javed Amjad, Member IR Operations Seema Shakil, Member Customs Operations Jawwad Awais Agha, Special Assistant to Chairman Zubair Bilal were also present on the inauguration.

    The Urdu website offers online facilitation and services to the taxpayers about Income Tax, Sales Tax, Customs and FBR Maloomaat.

    The Urdu version contains special features which contain useful reservoir of information relating to taxation and customs.

    With the launch of Urdu website, the people can not only file their complaints in Urdu but can also seek responses of their queries in the national language.

    The website offers facilitation to the people to read the Tax and Customs laws and rules, SROs and Circulars in Urdu language.

    Chairman FBR appreciated the efforts of FATE Wing officers and staff who worked tirelessly to make the launch of Urdu website possible in the shortest possible time for the facilitation of the taxpayers.

    Chairman FBR stated on the inauguration that FBR will soon achieve complete automation in all areas which will certainly bring great ease for the taxpayers in future.
    Urdu website can be accessed by clicking on the Urdu button on the FBR’s website fbr.gov.pk.

    The Urdu website can also be logged into by accessing urdu.fbr.gov.pk.

  • Foreign investment grows by 51pc during first quarter

    Foreign investment grows by 51pc during first quarter

    KARACHI: The total inflow of foreign private investment increased by 51 percent growth during first quarter (July-September) of 2019/2020, State Bank of Pakistan (SBP) said on Thursday.

    The total foreign private investment increased to $565 million during the first quarter of current fiscal year as compared with $374 million in the same period of the last fiscal year.

    The foreign direct investment (FDI) posted nominal decline of 3.1 percent to $542 million during the period under review as compared with $559 million in the same period of the last fiscal year.

    The inflows under FDI were $763 million during July – September 2019, which were 5.4 percent lower when compared with inflows of $806 million in the same period of the last year.

    The outflows under FDI were declined by 11 percent to $221 million as compared with $247 million.

    The foreign investment in capital market witnessed 112.2 percent increase during the first quarter of current fiscal year.

    The portfolio investment recorded $22.7 million inflows during July – September 2019 as against outflows of $185 million in the corresponding period of the last year.