Pkrevenue.com

Author: Faisal Shahnawaz

  • Delegation of powers by Commissioner Inland Revenue

    Delegation of powers by Commissioner Inland Revenue

    Section 210 of Income Tax Ordinance, 2001 has outlined the delegation of powers by Commissioner Inland Revenue to his subordinate officers.

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  • Jurisdiction of income tax authorities under Section 209

    Jurisdiction of income tax authorities under Section 209

    Section 209 of Income Tax Ordinance, 2001 has defined jurisdiction of income tax authorities such as chief commissioner, commissioner and commissioner (appeals) to exercise power.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following is the text of Section 209 of the Income Tax Ordinance, 2001:

    209. Jurisdiction of income tax authorities.—(1) Subject to this Ordinance, the Chief Commissioners, the Commissioners and the Commissioners (Appeals) shall perform all or such functions and exercise all or such powers under this Ordinance as may be assigned to them in respect of such persons or classes of persons or such areas as the Board may direct:

    Provided that the Board or the Chief Commissioner, as the case may be, may transfer jurisdiction in respect of cases or persons from one Commissioner to another.

    (2) The Board or the Chief Commissioner may, by an order, confer upon or assign to any officer of Inland Revenue all or any of the powers and functions conferred upon or assigned to the Commissioner, under this Ordinance,

    in respect of any person or persons or classes of persons or areas as may be specified in the order;

    Provided that the Board may also confer upon or assign to any Officer of Inland Revenue the aforesaid powers and functions through Automated Case Selection System:

    Provided further that the Board may make rules for conferment or assignment of such powers and functions through Automated Case Selection System.

    Explanation.— For the purpose of this sub-section, the expression “Automated Case Selection System” means an algorithm for randomized allocation of cases by using suitable technological modes.

    (3) An order under sub-section (2) by the Chief Commissioner shall be made only with the approval of the Board.

    (4) The Officer of Inland Revenue referred to in sub-section (2) shall, for the purposes of this Ordinance, be treated to be the Commissioner.

    (5) Within the area assigned to him, the Commissioner shall have jurisdiction, —

    (a) in respect of any person carrying on business, if the person’s place of business is within such area, or where the business is carried on in more than one place, the person’s principal place of business is within such area; or

    (b) in respect of any other person, if the person resides in such area:

    (6) Where a question arises as to whether a Commissioner has jurisdiction over a person, the question shall be decided by the Chief Commissioner or Chief Commissioners concerned and, if they are not in agreement, by the Board.

    (7) No person shall call into question the jurisdiction of a Commissioner after that person has furnished a return of income to the Commissioner or, where the person has not furnished a return of income, after the time allowed by any notice served on the person for furnishing such return has expired.

    (8) Notwithstanding anything contained in this section, every Commissioner shall have all the powers conferred by, or under, this Ordinance on him in respect of any income arising within the area assigned to him.

    (8A) The power to confer jurisdiction under this section shall include the power to transfer jurisdiction from one income tax authority to another.

    (9) Where, in respect of any proceedings under this Ordinance, an income tax authority is succeeded by another, the succeeding authority may continue the proceedings from the stage it was left by that authority’s predecessor.

    (Disclaimer: The text of the 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.)

    Appointment of income tax authorities under Section 208
  • Appointment of income tax authorities under Section 208

    Appointment of income tax authorities under Section 208

    Section 208 of Income Tax Ordinance, 2001 has empowered the Federal Board of Revenue (FBR) to appoint income tax authorities to exercise powers under the ordinance.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following is the text of Section 208 of the Income Tax Ordinance, 2001:

    208. Appointment of income tax authorities.— (1) The Board may appoint as many Chief Commissioners Inland Revenue, Commissioners Inland Revenue, Commissioners Inland Revenue (Appeals), Additional Commissioners Inland Revenue, Deputy Commissioners Inland Revenue, Assistant Commissioners Inland Revenue, Inland Revenue Officers, Inland Revenue Audit Officers, District Taxation Officer Inland Revenue, Assistant Director Audit, Superintendents Inland Revenue, Inspectors Inland Revenue, Auditors Inland Revenue and such other executive or ministerial officers and staff as may be necessary.

    (2) Subject to such orders or directions as may be issued by the Board, any income tax authority may appoint any income tax authority subordinate to it and such other executive or ministerial officers and staff as may be necessary.

    (3) All appointments, other than of valuers, chartered accountants or experts, made under this Ordinance, shall be subject to rules and orders of the Federal Government regulating the terms and conditions of persons in public services and posts.

     (Disclaimer: The text of the 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.)

    Income tax authorities defined under section 207
  • Income tax authorities defined under section 207

    Income tax authorities defined under section 207

    Section 207 of Income Tax Ordinance, 2001 has explained income tax authorities to exercise powers as defined in the ordinance.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following is the text of Section 207 of the Income Tax Ordinance, 2001:

    207. Income tax authorities.— (1) There shall be the following Income Tax authorities for the purposes of this Ordinance and rules made thereunder, namely:—

    (a) Board:

    (b) Chief Commissioner Inland Revenue;

    (c) Commissioner Inland Revenue;

    (d) Commissioner Inland Revenue (Appeals);

    (e) Additional Commissioner Inland Revenue;

    (f) Deputy Commissioner Inland Revenue;

    (g) Assistant Commissioner Inland Revenue;

    (ga) Special audit panel;

    (h) Inland Revenue Officer;

    (i) Inland Revenue Audit Officer;

    (ia) District Taxation Officer Inland Revenue;

    (ib) Assistant Director Audit.

    (j) Superintendent Inland Revenue;

    (k) Inspector Inland Revenue; and

    (l) Auditor Inland Revenue;

    (2) The Board shall examine, supervise and oversee the general administration of this Ordinance.

    (3) The income tax authorities specified in sub-section (1) except in clause (a) shall be subordinate to the Board.

    (3A) Commissioners Inland Revenue, Additional Commissioners Inland Revenue, Deputy Commissioners Inland Revenue, Assistant Commissioners Inland Revenue, Inland Revenue Officers, Inland Revenue Audit Officers, District Taxation Officer Inland Revenue, Assistant Director Audit, Superintendents Inland Revenue, Auditors Inland Revenue and Inspectors Inland Revenue, shall be subordinate to the Chief Commissioners Inland Revenue.

    (4) Subject to sub-section (5), Additional Commissioners Inland Revenue, Deputy Commissioner Inland Revenue, Assistant Commissioners Inland Revenue, Inland Revenue Officers, Inland Revenue Audit Officers, District Taxation Officer Inland Revenue, Assistant Director Audit, Superintendents Inland Revenue, Auditors Inland Revenue and Inspectors Inland Revenue shall be subordinate to the Commissioners Inland Revenue.

    (4A) Deputy Commissioners Inland Revenue, Assistant Commissioners Inland Revenue, Inland Revenue Officers, Inland Revenue Audit Officers, District Taxation Officer Inland Revenue, Assistant Director Audit, Superintendents Inland Revenue, Auditors Inland Revenue and Inspectors Inland Revenue shall be subordinate to the Additional Commissioners Inland Revenue.

    (5) An officer vested with the powers and functions of Commissioner shall be subordinate to the Chief Commissioner Inland Revenue.

    (Disclaimer: The text of the 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’s circulars may not binding on taxpayers
  • FBR’s circulars may not binding on taxpayers

    FBR’s circulars may not binding on taxpayers

    Section 206 of Income Tax Ordinance, 2001 has explained the powers of the Federal Board of Revenue (FBR) to issues circulars for tax authorities. However, these circulars shall not be binding on a taxpayer.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following is the text of Section 206 of the Income Tax Ordinance, 2001:

    206. Circulars. —(1) To achieve consistency in the administration of this Ordinance and to provide guidance to taxpayers and officers of the Board, the Board may issue Circulars setting out the Board’s interpretation of this Ordinance.

    (2) A circular issued by the Board shall be binding on all Income Tax Authorities and other persons employed in the execution of the Ordinance, under the control of the said Board other than Commissioners of Income Tax (Appeals).

    (3) A Circular shall not be binding on a taxpayer.

    206A. Advance ruling.— (1) The Board may, on application in writing by a non-resident taxpayer, issue to the taxpayer an advance ruling setting out the Commissioner’s position regarding the application of this Ordinance to a transaction proposed or entered into by the taxpayer.

    (2) Where the taxpayer has made a full and true disclosure of the nature of all aspects of the transaction relevant to the ruling and the transaction has proceeded in all material respects as described in the taxpayer’s application for the ruling, the ruling is binding on the Commissioner with respect to the application to the transaction of the law as it stood at the time the ruling was issued.

    (3) Where there is any inconsistency between a circular and an advance ruling, priority shall be given to the terms of the advance ruling.

    (Disclaimer: The text of the 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.)

  • Payment of default surcharge on due date failure

    Payment of default surcharge on due date failure

    Section 205 of Income Tax Ordinance, 2001 has defined payment default surcharge by persons who failed to pay tax amount by due date.

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  • FBR’s powers to tender immunity from prosecution

    FBR’s powers to tender immunity from prosecution

    Section 204 of Income Tax Ordinance, 2001 has empowered the Federal Board of Revenue (FBR), with the approval of the minister-in-charge, to tender immunity to persons from prosecution.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following is the text of Section 204 of Income Tax Ordinance, 2001:

    204. Power to tender immunity from prosecution.— (1) The Board with the approval of the Minister-in-charge may, for the purpose of obtaining the evidence of any person appearing to have been directly or indirectly concerned in, or privy to the concealment of income or to the evasion of tax, tender to such person immunity from prosecution for any offence under this Ordinance or under the Pakistan Penal Code (Act XLV of 1860), or under any other Federal Law on condition of the person making full and true disclosure of the whole circumstances relating to the concealment of income or evasion of tax.

    (2) A tender of immunity made to, and accepted by, the person concerned shall render the person immune from prosecution for any offence in respect of which the tender was made and to the extent specified in the immunity.

    (3) If it appears to the Board with the approval of the Minister-in-charge that any person to whom immunity has been tendered under this section has not complied with the conditions on which the tender was made or is concealing anything or giving false evidence, the Board with the approval of the Minister-in-charge may withdraw the immunity, and any such person may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which the person appears to have been guilty in connection with the same matter.

    (Disclaimer: The text of the 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.)

    Trial of tax cases by special judge
  • Prize bonds (bearer) to become worthless after Sept 30

    Prize bonds (bearer) to become worthless after Sept 30

    Bearer prize bonds of major denominations including Rs40,000/-, Rs25,000/- and Rs15,000/- will become worthless after September 30, 2021 if no date extension announcement comes from the government.

    The last date for encashment or exchanging the bearer prize bonds with denominations of Rs40,000/-, Rs25,000/- and Rs15,000 is September 30, 2021, which was already extended from May 31, 2021.

    In order to comply with the Financial Action Task Force (FATF) for the prevention of money laundering and terror financing, the government had decided to document the financial instruments by the withdrawal of bearer prize bonds.

    So far the government has decided to withdraw prize bonds of four denominations including Rs40,000/-, Rs25,000/-, Rs15,000 and Rs7,500. However, the last date for exchanging Rs7,500 denomination bearer prize bonds is December 31, 2021.

    The government started withdrawal of bearer prize bonds with Rs40,000 denomination on June 24, 2019. Later, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds. In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.

    It is likely the finance ministry extend the date for encashment / exchanging the bearer prize bonds beyond September 30, 2021. However, the decision in this regard has not been taken so far.

    The finance ministry has issued the following procedure for encashment/exchanging the bearer prize bonds.

    01. Conversion to Premium Prize Bonds (Registered): The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000/- and Rs40,000/- (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP)’s Banking Services Corporation, and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.

    02. Replacement with Special Saving Certificates (SSC) / Defence Saving Certificates (DSC): The bonds can be replaced with SSC/DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Centers.

    03. Encashment at Face Value: The bonds will only be encashed by transferring the proceeds to the bond holder’s bank account through the 16 field offices of SBP Banking Services Corporation as well as the authorized commercial bank branches and to the Saving Accounts at National Saving Centers.

    Prize Bonds (Bearer) not to be encashed after Sept 30
  • Trial of tax cases by special judge

    Trial of tax cases by special judge

    Section 203 of Income Tax Ordinance, 2001 has described that the Federal Government can appoint more than one special judge for trial of tax cases.

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  • Commissioner’s power to compound offences

    Commissioner’s power to compound offences

    Section 202 of the Income Tax Ordinance, 2001, updated up to June 30, 2021, now allows the Chief Commissioner, with the prior approval of the Board, to compound offences either before or after the institution of proceedings.

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