Pkrevenue.com

Author: Faisal Shahnawaz

  • FBR not to ask source of remittances sent through ECs

    FBR not to ask source of remittances sent through ECs

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that tax authorities will not ask source of foreign exchange not exceeding Rs5 million remitted through exchange companies (ECs) or money transfer operators.

    The FBR issued explanation to the Tax Laws (Third Amendment) Ordinance, 2021. The revenue body said Section 111(4) of Income Tax Ordinance, 2001 provides exclusion from unexplained income or assets to any amount of foreign exchange remitted from outside Pakistan through normal banking channels not exceeding Rs5 million en-cashed into rupees by a scheduled bank.

    The amendment through insertion of an explanation has now also treated remittances through Money Service Bureaus (MCBs), Exchange Companies (ECs) and Money Transfer Operators (MT0s) or other similar entities as foreign exchange remitted from outside Pakistan through normal Banking channels.

    After a formal clarification from SBP, Circular No. 05 of 2022 was issued by the Board.

    Through this amendment the FBR’s clarification has now been made part of legislation to facilitate foreign remittance and align the law with innovations that have taken place in the banking industry.

    Through the Circular No. 05 of 2022, the FBR has withdrawn all the appeals pertaining to income tax exemption on inward foreign remittances.

    “In order to win the trust of the taxpayers and spare the public resources for more productive use elsewhere, all departmental appeals filed on the strict sensu interpretation of the law, be withdrawn immediately, and no further appeals be filed if one all fours of this clarification,” according to the circular.

    Further, all circulars and instructions issued on the matter previously issued stand rescinded, the FBR added.

    FBR withdraws all appeals in exemption on remittances
  • Abetment in tax matters to be offence

    Abetment in tax matters to be offence

    Section 199 of the Income Tax Ordinance, 2001, updated up to June 30, 2021, now explicitly outlines that knowingly and willfully aiding, abetment, assisting, inciting, or inducing another person to commit an offense under the ordinance is a punishable offense, carrying the risk of a fine or imprisonment for a term not exceeding three years, or both.

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  • IR intelligence conducts two raids against tax evasion

    IR intelligence conducts two raids against tax evasion

    ISLAMABAD: The Intelligence and Investigation of Inland Revenue (IR) has conducted raids in Lahore and Multan against entities involved in tax evasion, said a statement issued by Federal Board of Revenue (FBR) on Thursday.

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  • KIBOR rates on September 23, 2021

    KIBOR rates on September 23, 2021

    KARACHI: State Bank of Pakistan (SBP) on Thursday issued the following Karachi Interbank Offered Rates (KIBOR) on September 23, 2021.

     TenorBIDOFFER
    1 – Week7.207.70
    2 – Week7.247.74
    1 – Month7.297.79
    3 – Month7.497.74
    6 – Month7.868.11
    9 – Month8.068.56
    1 – Year8.258.75
    KIBOR rates on September 22, 2021
  • SBP issues customers exchange rates for September 23

    SBP issues customers exchange rates for September 23

    KARACHI: The State Bank of Pakistan (SBP) on Thursday released the customers’ exchange rates for September 23, 2021, providing a snapshot of the currency market based on data collected from commercial banks across the country.

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  • MTO Karachi asks taxpayers to file income tax returns

    MTO Karachi asks taxpayers to file income tax returns

    Hameed Memon, Chief Commissioner Inland Revenue of the Medium Tax Office (MTO) in Karachi, has issued a heartfelt appeal to taxpayers, urging them to file their income tax returns as a national obligation and a service to the country.

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  • Obstructing tax officials punishable offence

    Obstructing tax officials punishable offence

    Section 196 of the Income Tax Ordinance, 2001, updated up to June 30, 2021, explicitly declares that obstructing an income tax authority in the discharge of their functions is now a punishable offense.

    (more…)
  • KIBOR rates on September 22, 2021

    KIBOR rates on September 22, 2021

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the following Karachi Interbank Offered Rates (KIBOR) on September 22, 2021.

     TenorBIDOFFER
    1 – Week7.207.70
    2 – Week7.247.74
    1 – Month7.307.80
    3 – Month7.447.69
    6 – Month7.727.97
    9 – Month7.878.37
    1 – Year8.098.59
    KIBOR rates on September 21, 2021
  • Prosecution for not declaring foreign assets

    Prosecution for not declaring foreign assets

    Section 195A of Income Tax Ordinance, 2001 explains the prosecution for not declaring foreign assets.

    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 195A and 195B of Income Tax Ordinance, 2001:

    195A. Prosecution for non-compliance with notice under section 116A.— Any person who, without reasonable excuse, fails to comply with a notice under sub-section (2) of section 116A; shall commit an offence punishable on conviction with imprisonment up to one year or with a fine up to fifty thousand Rupees or both.

    195B. Prosecution for enabling offshore tax evasion.– Any enabler who enables, guides or advises any person to design, arrange or manage a transaction or declaration in such a manner which results in offshore tax evasion, shall commit an offence punishable on conviction with imprisonment for a term not exceeding seven years or with a fine up to five million Rupees or both.

    (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.)

    Prosecution for making false, misleading statements
  • Stocks end down 412 points despite intraday recovery

    Stocks end down 412 points despite intraday recovery

    KARACHI: The stock market ended down by 412 points on Wednesday despite making a recovery in intraday massive fall.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,597 points as against previous close of 46,009 points.

    Analysts at Arif Habib Limited said that the market continued trending downward today and lost a total of 1221 points during the session and closed -412 points while posting partial recovery.

    Leveraged positions of retail investors played havoc on the market today, which received margin calls after continuous declines witnessed in the Index for the past couple of sessions.

    Besides, negative news flow relating to MCB Bank employee having implication in the Money Laundering case, also dented the sentiment.

    Technology and Refinery sectors got hurt the most, however, selling pressure was also observed in Cement, Steel, Fertilizer, Banks and E&P sectors. Among scrips, WTL led the table with 90.9 million shares, followed by ANL (36.1 million) and HUMNL (34 million).

    Sectors contributing to the performance include Technology (-77 points), E&P (-40 points), Textile (-38 points), Fertilizer (-35 points) and Refinery (-33 points).

    Volumes increased further from 325.8 million shares to 583.7 million shares (+79 per cent DoD). Average traded value also increased by 41 per cent to reach US$ 103.1 million as against US$ 73.1 million.

    Stocks that contributed significantly to the volumes include WTL, AN, HUMNL, BYCO and TELE, which formed 38 per cent of total volumes.

    Stocks that contributed positively to the index include MEBL (+26 points), MCB (+11 points), SNGP (+9 points), FCCL (+9 points) and INIL (+8 points). Stocks that contributed negatively include TRG (-38 points), SYS (-38 points), HBL (-25 points), UBL (-20 points) and CHCC (-16 points).

    KSE-100 index plunges 519 points amid selling