Karachi, September 30, 2021 – The State Bank of Pakistan (SBP) has officially issued the exchange rates for customers on September 30, 2021.
(more…)Author: Faisal Shahnawaz
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Proceedings against authority and persons
Section 216A of Income Tax Ordinance, 2001 describes the proceedings against authority and persons.
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 216A of Income Tax Ordinance, 2001:
216A. Proceeding against authority and persons.- (1) Subject to section 227, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in section 207 and officer of the Directorate General mentioned in Part II and Part III of Chapter XI including any person subordinate to the aforesaid authorities or officers of the Directorates General who wilfully and deliberately commits or omits an act which results in under benefit or advantage to the authority or the officer or official or to any other person.
(2) Where proceedings under sub-section (1) have been initiated against the authority or officer or official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the person referred to in sub-section (1)
(3) The proceedings under this section shall be without prejudice to any other liability that the authority or officer or official or the person may incur under any other law for the time being in force.
(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.)
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Date extended for exchanging bearer prize bonds
The finance division has notified extension in date for exchanging / conversion of bearer prize bonds from September 30, 2021 to December 31, 2021.
The date has been extended for unregistered (bearer) prize bonds in denomination of Rs40,000/-, Rs25,000/- and Rs15,000.
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.
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FBR’s return filing portal response inconsistent: KTBA
As the clock ticks down on the last day for filing income tax returns in Pakistan, taxpayers are encountering significant challenges with the country’s online return filing portal, IRIS.
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Imposition of 100% cash margin on imports likely
KARACHI: A 100 per cent cash margin requirement on imports to be imposed in order to discourage rising foreign purchases, market sources said on Wednesday.
The sources said that restriction on cash margin has been imposed to discourage import and support balance of payment.
The rupee is continuously falling and making lows for the past several days. The rupee fell to a new record low of Rs170.48 to the dollar in the interbank foreign exchange market on September 29, 2021.
The sources said that the condition of 100 per cent cash margin requirement on import of some medical items may not apply.
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FBR says return filing system working seamlessly
The Federal Board of Revenue (FBR) issued a statement on Wednesday asserting that the return filing system at IRIS portal is working seamlessly, receiving an impressive 150,000 returns on September 28, 2021.
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Pakistan stocks tumble on US sanctions on Taliban
KARACHI: Pakistan stocks tumbled on Wednesday as its benchmark index lost 908 points after the US announced to impose sanctions on the Taliban.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) ended at 44,367 points against the previous day’s closing of 45,275 points.
Analysts at Arif Habib Limited said after the initial uptick of 67 points carrying positive sentiment from yesterday, the market took a nose dive due to concerns on the foreign policy front where the US announced sanctions on the Taliban and its supporters that had PSX investors worry about the fate of relations with the US.
Resultantly, the index tumbled around 1300 points during intraday trading.
Selling was observed across the board with a major decline in Technology, Banks, E&P, O&GMCs and Fertilizer.
Among scrips, TELE topped the volumes with 52.4 million shares, followed by WTL (50.8 million) and DCR (36 million).
Sectors contributing to the performance include Banks (-172 points), Technology (-128 points), Cement (-100 points), Pharma (-65 points) and Fertilizer (-58 points).
Volumes increased from 364.8 million shares to 468.8 million shares (+28 per cent DoD). Average traded value also increased by 17 per cent to reach US$ 96.2 million as against US$ 82.2 million.
Stocks that contributed significantly to the volumes include TELE, WTL, DCR, BYCO and ANL, which formed 43 per cent of total volumes.
Stocks that contributed positively to the index include PAKT (+19 points), SCBPL (+3 points), GLAXO (+1 points), MUREB (+0 points) and IBFL (+0 points). Stocks that contributed negatively include TRG (-88 points), MCB (-61 points), SEARL (-35 points), SYS (-35 points) and LUCK (-35 points).
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Dollar hits new record high of Rs170.48 in interbank
KARACHI: The dollar on Wednesday hit another record high at Rs170.48 in the interbank foreign exchange market. The Pak Rupee (PKR) lost 51 paisas to close at Rs170.48 from the previous day’s closing of Rs169.97, the previous record high of the dollar, in the interbank foreign exchange market.
Currency experts said that dollar demand was further increased due to import and corporate payments.
They said that high international oil prices had also put pressure on the foreign currency.
The local currency is under pressure due to the ballooning trade deficit and widening of the current account deficit.
The State Bank of Pakistan (SBP) last week took measures to support the balance of payment by putting a ban on financing for imported vehicles. However, these measures have failed so far to soften the demand for foreign currency.
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SBP issues customers exchange rates for September 29
Karachi, September 29, 2021 – The State Bank of Pakistan (SBP) has released the exchange rates for customers on September 29, 2021.
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Disclosure of information by public servant in tax matters
Section 216 of Income Tax Ordinance, 2001 has explained that public servants cannot disclose information in tax matters.
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 216 of Income Tax Ordinance, 2001:
216. Disclosure of information by a public servant.- (1) All particulars contained in –
(a) any statement made, return furnished, or accounts or documents produced under the provisions of this Ordinance;
(b) any evidence given, or affidavit or deposition made, in the course of any proceedings under this Ordinance, other than proceedings under Part XI of Chapter X; or
(c) any record of any assessment proceedings or any proceeding relating to the recovery of a demand,
shall be confidential and no public servant save as provided in this Ordinance may disclose any such particulars.
(2) Notwithstanding anything contained in the Qanun-e-Shahadat, 1984 (P.O. Order No. 10 of 1984), or any other law for the time being in force, no court or other authority shall be, save as provided in this Ordinance, entitled to require any public servant to produce before it any return, accounts, or documents contained in, or forming a part of the records relating to any proceedings under this Ordinance, or any records of the Income Tax Department generally, or any part thereof, or to give evidence before it in respect thereof.
(3) Nothing contained in sub-section (1) shall preclude the disclosure of any such particulars –
(a) to any person acting in the execution of this Ordinance, where it is necessary to disclose the same to him for the purposes of this Ordinance;
(b) to any person authorised by the Commissioner in this behalf, where it is necessary to disclose the same to such person for the purposes of processing of data and preparation of computer printouts relating to returns of income or calculation of tax;
(c) where the disclosure is occasioned by the lawful employment under this Ordinance of any process for the service of any notice or the recovery of any demand; (d) to the Auditor-General of Pakistan for the purpose of enabling the Auditor-General to discharge his functions under the Constitution;
(e) to any officer appointed by the Auditor-General of Pakistan or the Commissioner to audit income tax receipts or refunds;
(f ) to any officer of the Federal Government or a Provincial Government authorised by such Government in this behalf as may be necessary for the purpose of enabling that Government to levy or realise any tax imposed by it;
(g) to any authority exercising powers under the Federal Excise Act, 2005, the Sales Tax Act, 1990, the Wealth Tax Act, 1963 (XV of 1963), or the Customs Act, 1969 (IV of 1969), as may be necessary for the purpose of enabling its duty to exercise such powers;
(h) occasioned by the lawful exercise by a public servant of powers under the Stamp Act, 1899 (II of 1899) to impound an insufficiently stamped document;
(i) to the State Bank of Pakistan to enable it to compile financial statistics of international investment and balance of payment;
(j) as may be required by any order made under sub-section (2) of section 19 of the Foreign Exchange Regulation Act, 1947 (VII of 1947), or for the purposes of any prosecution for an offence under section 23 of that Act;
(k) to the Securities and Exchange Commission or the Monopolies Control Authority for the purposes of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970 (VI of 1970), the Companies Act, 2017 (XIX of 2017) or the Securities and Exchange Commission of Pakistan Act, 1997, as the case may be;
(ka) Employees Old Age Benefit Institution in respect of information regarding salaries in statements furnished under section 165;
(kb) to National Database and Registration Authority for the purpose of broadening of the tax base;
(l) relevant to any inquiry into a charge of misconduct in connection with income tax proceedings against a legal practitioner or an accountant;
(m) to a Civil Court in any suit or proceeding to which the Federal Government or any income tax authority is a party which relates to any matter arising out of any proceedings under this Ordinance;
(n) for the purposes of a prosecution for any offence under the Pakistan Penal Code, 1860 (XLVI of 1860), in respect of any such statement, returns, accounts, documents, evidence, affidavit or deposition, or for the purposes of a prosecution for any offence under this Ordinance;
(o) relevant to any inquiry into the conduct of an official of the Income Tax Department to any person or officer appointed to hold such inquiry, or to a Public Service Commission, established under the Federal Public Service Commission Ordinance, 1977 (XLV of 1977), when exercising its functions in relation to any matter arising out of such inquiry;
(p) as may be required by any officer or department of the Federal Government or of a Provincial Government for the purpose of investigation into the conduct and affairs of any public servant, or to a Court in connection with any prosecution of the public servant arising out of any such investigation;
(q) to an authorised officer of the government of any country outside Pakistan with which the Government has entered into an agreement under section 107 for the avoidance of double taxation and the prevention of fiscal evasion as may be required to be disclosed in pursuance of that agreement; or
(r) to the Federal Tax Ombudsman appointed under the Establishment of the Office of Federal Tax Ombudsman Ordinance, 2000 (XXXV of 2000); or
(s) to the Financial Monitoring Unit (FMU) for the purpose of performing functions as laid down in the Anti-Money Laundering Act, 2010 (VII of 2010).
(4) Nothing in this section shall apply to the production by a public servant before a Court of any document, declaration, or affidavit filed or the giving of evidence by a public servant in respect thereof.
(5) Nothing contained in sub-section (1) shall prevent the Board from publishing, with the prior approval of the Federal Government, any such particulars as are referred to in that sub-section.
(6) Nothing contained in sub-section (1) shall prevent the Federal Government from publishing particulars and the amount of tax paid by a holder of a public office as defined in the National Accountability Bureau Ordinance, 1999 (XVIII of 1999).
(6A) Nothing contained in sub-section (1) shall prevent the Board from providing data to any person approved by the Federal Government to process and analyze such data for broadening of tax base or for checking evasion:
Provided that such data shall be anonymized before transmission to the person and identifying particulars of the taxpayers shall be kept confidential.”
(6B) Nothing contained in sub-section (1) shall prevent the Board from publishing the names of offshore evaders, in the print and electronic media who have evaded offshore tax equal to or exceeding rupees two and half million Rupees.
(6C) Nothing contained in sub-section (1) shall prevent the Board from publishing the names of offshore tax enablers, in the print and electronic media who have enabled offshore tax evasion.
(7) Any person to whom any information is communicated under this section, and any person or employee under the first-mentioned person’s control, shall be, in respect of that information, subject to the same rights, privileges, obligations, and liabilities as if the person were a public servant and all the provisions of this Ordinance, so far as may be, shall apply accordingly.
(8) No prosecution may be instituted under this section except with the previous sanction of the Board.
(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.)