Pkrevenue.com

Author: Faisal Shahnawaz

  • 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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  • FBR rebuts currency smuggling to Afghanistan

    FBR rebuts currency smuggling to Afghanistan

    ISLAMABAD: Federal Board of Revenue (FBR) strongly rebutted the reports of currency smuggling from Pakistan to Afghanistan.

    In a statement issued on Friday, the FBR categorically rebutted the unfounded, malicious intent and misleading in content propaganda being advanced by some irresponsible elements that there was a huge flight of dollars from Pakistan.

    It is further clarified that previously the bilateral trade between Pakistan and Afghanistan was carried out in US Dollars but now the same is being conducted in Pak Rupees (PKR).

    Furthermore, FBR has taken very stringent enforcement measures at the Airports to eliminate the possibility of any such an unethical practice.

    Pakistan Customs has made it mandatory for all passengers flying out of the country to undergo thorough personal scrutiny and 100 per cent declaration of currency through an automated process in order to ward off this nefarious illegal activity. This leaves the little possibility of the subject undesirable practice.

    It is most likely that Chairman FBR and Member (Customs Operations) will visit the Pak-Afghan border to oversee the functioning of the above mechanism on the ground.

    It is further reiterated that this transparent and efficient mechanism being adopted at all the airports across Pakistan is facilitating the smooth and easy movement of outbound passengers, thus significantly reducing their time and cost. 

    Draft rules issued for Uzbekistan-Pakistan transit trade
  • KIBOR rates on September 24, 2021

    KIBOR rates on September 24, 2021

    KARACHI: State Bank of Pakistan (SBP) on Friday issued the following Karachi Interbank Offered Rates (KIBOR) on September 24, 2021.

     TenorBIDOFFER
    1 – Week7.197.69
    2 – Week7.247.74
    1 – Month7.307.80
    3 – Month7.517.76
    6 – Month7.888.13
    9 – Month8.108.60
    1 – Year8.278.77
    KIBOR rates on September 23, 2021
  • One month date extension demanded for filing tax returns

    One month date extension demanded for filing tax returns

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Friday demanded the tax authorities to extend the last date of filing returns for the tax year 2021 up to October 31, 2021.

    KCCI President M. Shariq Vohra in a statement urged the government to extend last date for filing Income Tax Return from September 30, 2021 to October 31, 2021 as many taxpayers were finding it really hard to file their returns on time due to ongoing extraordinary situation in which many businesses have suffered badly because of limited timings and other curbs imposed to contain the spread of COVID-19 pandemic.

    President KCCI said that although the government has recently eased some restrictions but the businesses were still struggling to return to complete normalcy, hence they must be provided some breathing space by extending the last date for filing income tax return till October 31, 2021.

    He stated that KCCI has been receiving a lot of requests from the members of the business and industrial community who have been constantly asking the Chamber to approach the higher authorities to seek extension in last date. 

    “It is a well-known fact that the entire nation including the taxpayers were hit hard by the fourth wave of Covid-19 and the situation remains challenging to date. Hence, the Federal Board of Revenue must keep all the ground realities in mind and extend last date for filing income tax return to October 31, 2021 which would be widely appreciated by the business community,” he added.

    Non-filers get ready for suspension of phone, gas, power
  • Prosecution for offence by companies, AOPs

    Prosecution for offence by companies, AOPs

    Section 200 of Income Tax Ordinance, 2001 has explained the prosecution for offence by companies or association of persons (AOPs).

    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 200 of Income Tax Ordinance, 2001:

    200. Offences by companies and associations of persons. — (1) Where an offence under this Part is committed by a company, every person who, at the time the offence was committed, was –

    (a) the principal officer, a director, general manager, company secretary or other similar officer of the company; o

    (b) acting or purporting to act in that capacity,

    shall be, notwithstanding anything contained in any other law, guilty of the offence and all the provisions of this Ordinance shall apply accordingly.

    (2) Where an offence under this Part is committed by an association of persons, every person who, at the time the offence was committed, was a member of the association shall be, notwithstanding anything contained in any other law, guilty of the offence and all the provisions of this Ordinance shall apply accordingly.

    (3) Sub-sections (1) and (2) shall not apply to a person where –

    (a) the offence was committed without the person’s consent or knowledge; and

    (b) the person has exercised all diligence to prevent the commission of the offence as ought to have been exercised having regard to the nature of the person’s functions and all the circumstances.

    (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.)

    Abetment in tax matters to be offence
  • Non-filers get ready for suspension of phone, gas, power

    Non-filers get ready for suspension of phone, gas, power

    The Federal Board of Revenue (FBR) in Pakistan has issued a stern warning to individuals who failed to file their annual tax returns by September 30, 2021.

    (more…)
  • SBP issues customers exchange rates for September 24

    SBP issues customers exchange rates for September 24

    Karachi, September 24, 2021 – The State Bank of Pakistan (SBP) has released the exchange rates for customers on Friday, September 24, 2021.

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  • 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