Pkrevenue.com

Category: Taxation

Stay updated on taxation news, tax laws, FBR policies, compliance, audits, income tax, sales tax, and fiscal developments in Pakistan.

  • FBR assures traders of facilitating Pak-Afghan trade

    FBR assures traders of facilitating Pak-Afghan trade

    ISLAMABAD: Federal Board of Revenue (FBR) on Saturday assured the traders of providing all facilities for the clearance of goods at the Pak-Afghan border.

    Chairman Federal Board of Revenue, Dr. Muhammad Ashfaq Ahmad accompanied by Syed Tariq Huda Member(Customs Operations) and Saeed Jadoon Member (Customs Policy) on Saturday visited Torkham Border and reviewed the pace and quality of services being provided by Pakistan Customs to facilitate trade between Pakistan and Afghanistan.

    Immediately after his arrival, he ensured the clearance of about 1400 trucks loaded with fruit from Afghanistan which had got stuck at the border.

    The customs staff assured him to accelerate the process of 100 more trucks awaiting clearance.

    Earlier, he held an important meeting with traders from both sides of the border and assured them of all possible assistance by FBR in ensuring the smooth and easy flow of bilateral trade.

    He positively hoped that the Customs staff posted there will maintain the highest standards of professional conduct in the discharge of their official duty.

    It is pertinent to mention that on Friday FBR had issued an important circular granting special exemption from Sales Tax to the import of fresh fruit from Afghanistan.

    This rare concession by FBR is being appreciated by traders from both sides as a landmark decision that will certainly promote trade between the two neighboring countries.

    A day earlier, the FBR issued a press release stating that the chairman would visit the Pak-Afghan border to oversee the function of currency declaration.

    The FBR through the press release denied reports of currency smuggling.

    It said 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.

    FBR rebuts currency smuggling to Afghanistan
  • 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.

    (more…)
  • 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.

    (more…)
  • Institution of prosecution proceedings

    Institution of prosecution proceedings

    The Federal Board of Revenue (FBR) has been granted enhanced authority to initiate prosecution proceedings under Section 201 of the Income Tax Ordinance, 2001.

    (more…)
  • New penalty regime introduced for non-filing tax returns

    New penalty regime introduced for non-filing tax returns

    The Federal Board of Revenue (FBR) has introduced new penalty regime introduced for non-filing tax returns in order to encourage documentation.

    (more…)
  • NADRA’s computation to be treated as assessment: FBR

    NADRA’s computation to be treated as assessment: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has said that computation of income and assets prepared by the National Database Registration Authority (NADRA) shall be treated as assessment.

    The FBR in explanation to Tax Laws (Third Amendment) Ordinance, 2021 said that a new section 175B has been inserted in the Income Tax Ordinance, 2001 aiming to broaden the tax base through collaboration between NADRA and FBR.

    Sub-section (1) of section 175B mandates NADRA to share its records or any other information available or held by it, on its own motion or upon application by the Board.

    Sub-section (2) thereof allows NADRA to compute indicative income and tax liability on the basis of various expenses, receipts, assets, properties and liabilities etc. using artificial intelligence, mathematical or statistical modeling or any modern methods.

    The FBR may forward such information to the concerned tax authorities having jurisdiction in connection to the subject matter relating to the information, who may utilize the information for the purpose of levy of tax.

    The indicative income and tax liability shall be communicated to the person to whom it relates. Such person shall have the option to pay tax as prescribed. In case of failure to pay such liability within stipulated

    timeframe, the tax authority shall take action under the provisions of the Ordinance on the basis of the Indicative Income so computed.

    If the person against whom the liability has been determined under sub-section (4) of the newly inserted section pays such liability, such payment shall be construed to be an amended assessment order under section 120 or 122(1) or 122(4) as the case may be.

    Board is also vested with the powers to make rules for the purposes of subsections (4) and (5) to prescribe the extent of installments, and any relief regarding the penalty and default surcharge, and time limits.

    To provide an enabling environment for the joint mechanism the restrictions on provision of information in terms of section 198 have been done away with and the said section is now omitted.

    FBR not to ask source of remittances sent through ECs
  • PSW to reduce trade cost, time, and complications: Tarin

    PSW to reduce trade cost, time, and complications: Tarin

    ISLAMABAD: Finance Minister Shaukat Tarin on Friday said that Pakistan Single Window (PSW) will facilitate trade by reducing cost, time and complications.

    Shaukat Tarin presided over the first meeting of Governing Council of PSW held at the Finance Division.

    The finance minister appreciated the progress and stated that PSW will reduce time, cost and complications while contributing significantly towards ease of doing business in the country.

    He said that PSW will enable Pakistan to unlock its potential in becoming a hub for regional as well as international trade and transit.” Deep rooted reforms being undertaken under PSW program by the government will promote trade competitiveness with enhanced transparency and efficiency,” Tarin added.

    The new system will leverage information and communication technology to ensure better compliance with the cross-border trade regulations.

    The finance minister commended the efforts of Pakistan Customs as the lead agency of PSW program and all those who have been part of PSW, a transformational project, which will take Pakistan’s trade to the next level. He affirmed full support and facilitation on the occasion.

    The Secretary of the Governing Council briefed the Finance Minister about the PSW, a virtual system which is connecting the concerned Ministries, Customs, port authorities, banks and other relevant departments after major process re-engineering to provide a single window for management of international trade.

    The PSW is a facility that allows parties involved in trade and transport in Pakistan to lodge standardized information and documents at a single registration point.

    This eliminates the hidden costs and removes inefficiencies in governance of international trade including logistics.

    He further briefed that first phase of PSW program has been rolled out while its 2nd and 3rd phases will be completed within the next two years.

    The implementation of PSW will make Pakistan’s ports competitive by minimizing the transaction costs and also enhance efficient provision of B2B and B2C value added services. The cargo would be cleared in a minimum possible time.

    Over 75 regulatory departments will be fully integrated through ICT based system, providing a single point of entry to facilitate trading across borders with minimal need for any physical contact, he added.

    The Governing Council (GC) is the apex body in the approved Business model of PSW under Pakistan Single Window Act, promulgated in April this year.

    The GC comprises of key stakeholders and prominent private sector subject specialists to oversee timely completion of this important project while removing hurdles in its implementation.

    The Finance Minister is the Chairperson of PSW’s Governing Council which also includes Secretary Commerce, Secretary M/o NFS&R, Secretary Maritime Affairs, Secretary Science & Technology, Secretary Narcotics Control Division, Member Customs Operations and CEO PSW Company.

    Among others, Federal Secretary for Narcotics Akbar Durrani, Additional Secretary Commerce, Additional Secretary Economic Affairs Division, Member Customs FBR and senior officers of the Ministry of National Food Security & Research, Ministry of Health, Ministry of Science & Technology, Ministry of Maritime Affairs participated in the meeting.

    FBR appoints CEO for Pakistan Single Window Company
  • 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
  • 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…)