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Category: Taxation

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

  • FBR grants audit immunity to salaried persons, pensioners

    FBR grants audit immunity to salaried persons, pensioners

    ISLAMABAD: Federal Board of Revenue (FBR) has granted audit immunity to salaried individuals and pensioners for income declared/ return filed for tax year 2018.

    The FBR on Tuesday issued Audit Policy 2019 and announced exclusion from audit to certain classes of taxpayers.

    The FBR said that all cases where income chargeable to tax under the head of salary and / or pension exceeds 50 percent of taxable income should be excluded from income tax audit. The FBR said that directors of companies would not qualify for the exclusion.

    The FBR also excluded persons falling under final tax regime from audit selection.

    The FBR said that under Audit Policy 2019 those cases would not be selected, which were already selected for audit by commissioner Inland Revenue and Director Intelligence and Investigation (I&I) (IR) under Section 177 and in consequence of action under section 175 of the Income Tax Ordinance, 2001 for tax year 2018.

    The FBR further said that those cases would not be selected where declaration had been made under the Voluntary Declaration of Domestic Assets Act, 2018. Further, those cases will also not be selected where declaration has been made under the Asset Declaration Ordinance, 2019.

    The FBR said that Audit Policy 2019 would apply to persons or classes of persons falling under all or any of the three domestic federal tax statutes i.e. Income Tax Ordinance, 2001, Sales Tax Act, 1990, and Federal Excise Act, 2005 and shall provide the necessary framework for selection of cases for audit by the Board.

    The FBR further said that the for the purpose of selecting cases for audit through risk based approach by conducting computer ballots, the policy be effective for tax year 2018 for Income Tax and corresponding tax periods for sales tax and federal excise.

    The FBR said that it would conduct computer ballot by applying risk based parameters for selection of 0.76 percent of cases for audit out of the total filers after exclusions in Income Tax for the tax year 2018.

    For sales tax and federal excise, the FBR would select 1.67 percent and 5.65 percent cases for audit respectively out of the total filers after exclusions for tax period corresponding to accounting period adopted for the purpose of returns for income tax for tax year 2018.

    However, the FBR has limited the audit cases selected without the risk-based system to 10 percent of total audits subject to clearance by Member (Taxpayers Audit).

  • Providing business outlets, brands made mandatory for sales tax return

    Providing business outlets, brands made mandatory for sales tax return

    ISLAMABAD: Federal Board of Revenue (FBR) has amended sales tax rules in order to bring more businesses into the tax net.

    The FBR issued SRO 776(I)/2020 on Tuesday to amend Sales Tax Rules, 2006. Through the amendment the FBR explained that null return should be treated as a sales tax return which shows no data related to sales and purchases during a tax period.

    Further, the FBR has made mandatory for a business to provide names of all business branches/outlets along with complete addresses etc.

    The FBR also made it mandatory that a business owner will provide details of all brands names/trademarks in which dealing. The FBR said that the business owner shall provide details of all business brand names / trademarks etc. in which dealing.

  • FBR directed to simplify income tax return form while considering various sectors

    FBR directed to simplify income tax return form while considering various sectors

    ISLAMABAD: In a bid to alleviate the challenges faced by various economic sectors, Dr. Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance and Revenue, has instructed the Federal Board of Revenue (FBR) to simplify the income tax return form. This directive came during an important meeting on FBR reforms held on Monday.

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  • FBR renames tax offices

    FBR renames tax offices

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday renamed field offices while exercising powers under Section 4(1)(r) of FBR Act, 2007. The change of names shall take effect on September 01, 2020.

    According to an office order, the Large Taxpayers Unit (LTU) Karachi, Lahore and Islamabad will be renamed as Large Taxpayers Office (LTO) Karachi, Lahore and Islamabad.

    The LTU-II Karachi has been renamed as Medium Taxpayers Unit (MTU) Karachi. Further, Corporate Regional Tax Office (CRTO) Karachi and Lahore have been renamed as CTO Karachi and Lahore.

    Meanwhile, the Regional Tax Office (RTO)-II Karachi has been renamed as RTO-I Karachi and RTO-III Karachi has been renamed as RTO-II Karachi. The RTO-II Lahore has been renamed as RTO Lahore.

  • FBR transfers 74 customs officials of BS-16 to BS-18

    FBR transfers 74 customs officials of BS-16 to BS-18

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday notified transfers and postings of 74 officials of Pakistan Customs Service (PCS) in BS-16 to BS-18 with immediate effect until further orders.

    The FBR notified transfers and postings of following officials:

    01. Tauqeer Ahmad Dar (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Post Clearance Audit (Central), Lahore from the post of Deputy Collector, Model Customs Collectorate of Enforcement and Compliance, Lahore

    02. Muhammad Ali Asad Khan (Pakistan Customs Service/BS-18) has been transferred and posted as Secretary (OPS), Customs Wing, Federal Board of Revenue (HQ), Islamabad from the post of Deputy Collector, Office of the Chief Collector Customs Appraisement and Facilitation (Central), Lahore.

    03. Ms. Tayyaba Bukhari (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation, FBR, Lahore from the post of Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Lahore.

    04. Ms. Asma Bashir (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation, FBR, Lahore from the post of Deputy Collector, Model Customs Collectorate (AIIA), Lahore.

    05. Syed Babar Ali Shah (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Training & Research (Customs), Lahore from the post of Deputy Collector, Model Customs Collectorate, Sialkot.

    06. Fazli Shakoor (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Collectorate of Customs (Adjudication), Quetta from the post of Deputy Director, Directorate of Intelligence & Investigation, FBR, Quetta.

    07. Muhammad Faisal (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Post Clearance Audit (South), Karachi from the post of Deputy Director, Directorate of Reforms and Automation (Customs), Karachi.

    08. Ms. Zehra Tahir Naqvi (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate General of Customs Valuation, Karachi from the post of Deputy Collector, Model Customs Collectorate of Exports, Custom House, Karachi.

    09. Shoukat Hayat (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Quetta from the post of Deputy Director, Directorate General of Transit Trade, Karachi.

    10. Ammar Ahmad Mir (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi from the post of Deputy Director, Directorate General of Training & Research (Customs), Karachi.

    11. Ms. Nausheen Riaz Khan (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation, FBR, Karachi from the post of Deputy Director, Directorate General of Risk Management, Karachi.

    12. Ms. Mahwish Shah (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Collectorate of Customs (Adjudication-I), Karachi from the post of Deputy Collector, Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi.

    13. Ms. Aneeqa Afzal (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Collectorate of Customs (Adjudication), Faisalabad from the post of Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Faisalabad.

    14. Ms. Mariam Mehdi Raja (Pakistan Customs Service/BS-18) has been transferred and posted as  Deputy Director, Directorate of Post Clearance Audit (Central), Lahore from the post of Deputy Collector, Model Customs Collectorate (JIAP), Karachi.

    15. Omer Bin Zafar Chattha (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of IPR Enforcement (Central), Lahore from the post of Deputy Collector, Model Customs Collectorate, Islamabad.

    16. Syed Kareem Adil (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Enforcement and Compliance, Lahore from the post of Deputy Collector, Model Customs Collectorate, Hyderabad.

    17. Ms. Haleema Qasim (Pakistan Customs Service/BS-18)  has been transferred and posted as Deputy Director, Directorate of CBCM, DG I&I-FBR, Islamabad from the post of Deputy Collector, Collectorate of Customs (Adjudication), Islamabad. The officer will also look after the charge of Deputy Director, Directorate of Law & Prosecution, Islamabad.

    18. Ali Ijaz (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Customs Valuation, Lahore from the post of Deputy Collector, Model Customs Collectorate of Exports, Customs House, Karachi.

    19. Inamullah (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate (JIAP), Karachi from the post of Deputy Director, Directorate of Transit Trade, Peshawar.

    20. Ms. Nazia Saleem (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Lahore from the post of Deputy Collector, Model Customs Collectorate, Islamabad.

    21. Tausif Aman (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation ,FBR, Karachi from the post of Deputy Collector, Model Customs Collectorate (JIAP), Karachi.

    22. Junaid Mahmood (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation (East), Karachi from the post of Deputy Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi.

    23. Muhammad Aftab (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation, FBR, Karachi from the post of Deputy Collector, Model Customs Collectorate of Exports (PMBQ), Karachi.

    24. Mrs. Zainab Mahmood (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Collectorate of Customs (Adjudication), Lahore from the post of Deputy Collector, Model Customs Collectorate (AIIA), Lahore.

    25. Naveed-ur-Rehman (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate, Islamabad from the post of Deputy Director, Directorate of Internal Audit-North (Customs), Islamabad.

    26. Amjad Hussain Rajper (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Enforcement and Compliance, Quetta from the post of Deputy Collector, Collectorate of Customs (Adjudication), Quetta.

    27. Hamid Hussain (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate, Gwadar from the post of Deputy Collector, Office of the Chief Collector Customs (Appraisement and Facilitation) – South, Karachi.

    28. Amanullah Soomro (Pakistan Customs Service/BS-18) has been transferred and posted as Second Secretary, Customs Wing, Federal Board of Revenue (HQ), Islamabad from the post of Deputy Director, Directorate General of Customs Valuation, Karachi.

    29. Wahaj Saghir (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate, Gwadar from the post of Deputy Collector, Model Customs Collectorate, Gilgit-Baltistan.

    30. Asfand Yar Khan (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Transit Trade, Peshawar from the post of Deputy Director, Strategic Control Division, Ministry of Foreign Affairs, Islamabad.

    31. Amjad Aman (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi from the post of Deputy Collector, Model Customs Collectorate of Enforcement and Compliance, Multan.

    32. Usman Tariq (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate (AIIA), Lahore from the post of Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Faisalabad.

    33. Saqib-ur-Raihman (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate (AIIA), Lahore from the post of Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Peshawar.

    34. Muhammad Wasif Malik (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi from the post of Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Quetta.

    35. Amanat Khan (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Transit Trade, Peshawar from the post of Deputy Director, Directorate of Intelligence & Investigation, FBR, Lahore.

    36. Umair Zahid (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Peshawar from the post of Deputy Collector, Model Customs Collectorate of Enforcement and Compliance, Karachi.

    37. Ubaidullah (Pakistan Customs Service/BS-17) has been transferred and posted as Deputy Director, (OPS) Directorate of Intelligence & Investigation, FBR, Rawalpindi from the post of Deputy Director, (OPS) Directorate of Post Clearance Audit (North), Islamabad.

    38. Farhat H. Khan (Pakistan Customs Service/BS-17) has been transferred and posted as Deputy Collector, (OPS) Model Customs Collectorate of Enforcement and Compliance, Karachi from the post of Deputy Director, (OPS) Directorate of Post Clearance Audit (South), Karachi.

    39. Malik Muhammad Ahmed (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Quetta from the post of Assistant Collector, Model Customs Collectorate, Gwadar.

    40. Quratulain Ramay (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (West), Karachi from the post of Assistant Director, Directorate General of IPR (Enforcement), Islamabad.

    41. Nabeel Siraj (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate General of Risk Management, Karachi from the post of Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (East), Karachi.

    42. Farheen Zahra (Pakistan Customs Service/BS-17) has been transferred and posted as Second Secretary, Customs Wing, Federal Board of Revenue (HQ), Islamabad from the post of Assistant Collector, Model Customs Collectorate, Islamabad.

    43. Azka Zafar Rana (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate of Reforms and Automation (Customs), Karachi from the post of Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (East), Karachi.

    44. Maleeka Jafari (Pakistan Customs Service/BS-17) has been transferred and posted as Second Secretary, Customs Wing, Federal Board of Revenue (HQ), Islamabad from the post of Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (East), Karachi.

    45. Raissa Kanwal (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Multan from the post of Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (West), Karachi.

    46. Tanveer Ahmad (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Collectorate of Customs (Adjudication), Islamabad from the post of Assistant Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi.

    47. Salman Javaid (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate General of Risk Management, Karachi from the post of Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Lahore.

    48. Shehla Saleem Mughal (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate of Training & Research (Customs), Lahore from the post of Assistant Collector, Model Customs Collectorate, Sialkot.

    49. Rabel (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Exports, Custom House, Karachi from the post of Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (West), Karachi.

    50. Nayab Azhar (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation, Faisalabad from the post of Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Karachi.

    51. Saima Rahim (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Multan from the post of Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation, Lahore.

    52. Sajid Khan (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (East), Karachi from the post of Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Peshawar.

    53. Muhammad Ahmed Rizwan (Pakistan Customs Service/BS-17) has been transferred and posted as Second Secretary, Customs Wing, Federal Board of Revenue (HQ), Islamabad from the post of Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (West), Karachi.

    54. Tariq Hussain (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Gilgit-Baltistan from the post of Assistant Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi.

    55. Rana Umair Arshad (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate of Reforms and Automation (Customs), Karachi from the post of Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Quetta.

    56. Syed Jalal Haider Zaidi (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Islamabad from the post of Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Multan.

    57. Muhammad Fahd Jamil (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Strategic Exports Control Division, Ministry of Foreign Affairs Islamabad from the post of Assistant Collector (Prob), Model Customs Collectorate of Enforcement and Compliance, Multan.

    58. Hudaa Khalid (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Islamabad from the post of Assistant Collector, Model Customs Collectorate, Sialkot.

    59. Wardah Hajra (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Islamabad from the post of Assistant Collector (Prob), Office of the Chief Collector Customs (North), Islamabad.

    60. Muhammad Javed Mehmood (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation, Faisalabad from the post of Assistant Director, Directorate of IPR Enforcement (Central), Lahore.

    61. Khalid Umer (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate General of Transit Trade, Karachi from the post of Assistant Director, Directorate of Intelligence & Investigation, FBR, Gwadar.

    62. Asad Aleem (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Exports, Custom House, Karachi from the post of Assistant Director, Directorate of Intelligence & Investigation, FBR, Karachi.

    63. Muhammad Saleem (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate of Intelligence & Investigation, FBR, Gwadar from the post of Assistant Director, Directorate of Internal Audit (Customs), Karachi.

    64. Muhammad Khalid (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Sialkot from the post of Superintendent, RTO, Gujranwala, on promotion.

    65. Manoo Mal Gulwani (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Hyderabad from the post of Superintendent, Model Customs Collectorate, Hyderabad, On Promotion.

    66. Amjad Lal Junejo (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate, Hyderabad from the post of Superintendent, Model Customs Collectorate, Hyderabad, On Promotion.

    67. Ms. Kousar Jabeen (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate of Internal Audit-South (customs), Karachi from the post of Superintendent, RTO-II, Karachi, On Promotion.

    68. Samsam Qadir Shah (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate General of Training & Research (Customs), Karachi from the post of Superintendent Preventive Services, Model Customs Collectorate of Enforcement and Compliance, Karachi, On Promotion.

    69. Nasir Iqbal Kasuri (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation, Lahore from the post of Principal Appraiser, Directorate of Internal Audit (North-Customs), Islamabad (Based at Lahore), On Promotion.

    70. Shafiullah (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Enforcement and Compliance, Karachi from the post of Principal Appraiser, Model Customs Collectorate of Appraisement and Facilitation (West), Karachi, On Promotion.

    71. Ilyas Ahmed (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate (JIAP), Karachi from the post of Superintendent, Direcorate of Intelligence & Investigation-FBR, Karachi, On Promotion.

    72. Mehmood Ahmad Nasir (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate of IOCO (North), Lahore from the post of Superintendent, CRTO, Lahore, On Promotion.

    73. Abdul Qayyum (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Director, Directorate of Intelligence & Investigation, FBR, Multan from the post of Principal Appraiser, Model Customs Collectorate of Appraisement and Facilitation (East), Karachi, On Promotion.

    74. Abdul Hameed (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation (West), Karachi from the post of Principal Appraiser, Directorate General of Customs Valuation, Karachi, On Promotion.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR notifies rules making mandatory for banks to share deposit, withdrawal details

    FBR notifies rules making mandatory for banks to share deposit, withdrawal details

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday made it mandatory for banks to provide details of transactions including deposits and withdrawals during a month. Besides, the banks are also required to provide information of transactions made through credit/debit cards and details of persons making profit on debt through banking deposits.

    The FBR issued SRO 773(I)/2020 dated August 24, 2020 to make amendment in Income Tax Rules, 2002. The FBR previously issued draft of these rules through SRO 686(I)/2020 dated August 05, 2020.

    According to the amendments, the banks are required to provide information of persons who have deposited Rs10 million or more during a month.

    The information of person making transactions must include: CNIC/NICOP/Passport Number; Name/Title of Account; Resident/Non-Resident; Address; Telephone Number; Account Opening Date; Account Number (BAN); Business/Professional/Occupation; and Amount Deposited during a month.

    The banks are also required to provide similar information to the tax authority of a person making cash withdrawal exceeding Rs1 million during a month.

    According to the rules, the FBR also made it mandatory for banks to provide details of persons making payment through credit card payment of Rs250,000 or more during a month. The FBR sought similar information of persons making transactions from banks.

    Besides, the banks will furnish information of persons making profit on debt during a year. The banks will provide similar information of persons drawing profit on debt.

  • FBR allows sugar import at reduced rates of income tax, sales tax

    FBR allows sugar import at reduced rates of income tax, sales tax

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday allowed import of sugar at reduced rate of income tax and sales tax for the quantity as approved by the government.

    The FBR issued SRO 770(I)/2020 and SRO 771(I)/2020 to amend Income Tax Ordinance, 2001 and Sales Tax Act, 1990 for allowed reduced rates of advance income tax at 0.25 percent and sales tax at one percent.

    Through SRO 771(I)/2020, the Second Schedule of Income Tax Ordinance, 2001 has been amended.

    In the Schedule, in Part- II, after the omitted clause (9A), the following new clause has been inserted, namely:—

    “(9AA) In respect of import of white crystalline sugar falling under H.S codes 1701.9910 and 1701.9920 from the 25th day of August, 2020 to the 15th day of November, 2020 (both days inclusive), tax under section 148 shall be collected at the rate of 0.25 percent provided that such imports shall not exceed three hundred thousand metric tons in aggregate, as per mode and manner prescribed by Ministry of Commerce during the said period.”

    Earlier, on August 20, 2020, the FBR issued SRO 750(I)/2020 to allow exemption of income tax on sugar import by Trading Corporation of Pakistan.

    It said: “The provisions of Section 148, in pursuance of the Cabinet Division in case No. 541/30/2020 dated August 04, 2020, not apply on import by the Trading Corporation of Pakistan of 300,000 metric tons of white sugar having PCT heading 1701.9910, 1701.9920, specification B.”

    Through S RO 770(I)/2020, it is allowed:

    The imported white crystalline sugar, falling in PCT headings 1701.9910 and 1701.9920, shall be chargeable to sales tax under clause (b) of sub-section (1) of section 3 of the Sales Tax Act, 1990, at the rate of one percent; and

    The exemption shall be applicable to white crystalline sugar to be imported during the period from 25th August, 2020 to 30th November, 2020 (both days inclusive), as per quantity, quality , mode and manner determined by the Ministry of Commerce and Textile, Government of Pakistan; and

    The imported white crystalline sugar falling in PCT headings 1701.9910 and 1701.9920 shall also be exempt from payment of minimum value addition tax as specified in the Twelfth Schedule to the Sales Tax Act, 1990.

    Earlier, the FBR issued SRO 751(I)/2020 dated August 20, 2020 to exempt whole of sales tax on import of 300,000 metric tons of white sugar (PCT 1701.9910, 1701.9920, specification B as per PSQCA standards) by Trading Corporation of Pakistan.

  • FBR updates withholding tax rates on purchase of domestic, international air tickets

    FBR updates withholding tax rates on purchase of domestic, international air tickets

    The Federal Board of Revenue (FBR) has updated the withholding tax rates on the purchase of domestic and international air tickets for the tax year 2021. According to the FBR, this update follows the incorporation of amendments made to the Income Tax Ordinance, 2001 through the Finance Act, 2020.

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  • FBR implements functional system for big taxpayers

    FBR implements functional system for big taxpayers

    ISLAMABAD: Federal Board of Revenue (FBR) has implemented a functional system separating functions of enforcement, audit and legal for big taxpayers.

    This functional system has only been introduced at the large taxpayers units (LTUs) where FBR makes assessment of taxpayers with high annual turnover.

    In order to implement the FBR has issued jurisdiction orders for LTUs Karachi, Lahore and Islamabad.

    According to an order issued on August 05, 2020 the FBR re-designated the jurisdiction of Chief Commissioner Inland Revenue and Commissioner Inland Revenue of LTU Karachi.

    The functional system has been implemented from August 10, 2020.

    The Commissioner Audit shall have powers and functions included:

    Income Tax:

    (a) Calling for information and audit of cases under Part VIII of chapter X, assessment, amendment of assessment and agreed assessment under Part II of Chapter X, charge of tax under Chapter II, computation of taxable income and total income under Chapter III and computation of taxable income under Part II of Chapter X arising out of such orders, rectification of orders related to audit and exercise of powers and functions under Section 175 and 176 or under any specific provision of law and rules provided in the Income Tax Ordinance, 2001 and Schedules thereto in respect of audit and assessment;

    (b) assessment under Section 143 and 144;

    (c) Computation of income chargeable to tax, determination of tax payable thereon, allowing credit of the tax already paid or of the determined refunds while exercising powers and performing function and mentioned at (a) and (b).

    (d) Best judgment assessment under Section 121 read with sub section 10 of Section 177 in respect of cases under audit;

    (e) Exercising powers to determine income under ‘Anti-Avoidance’ provisions contained in Chapter VIII;

    (f) Revision of assessment under Section 122A in respect of audit related cases;

    (g) imposition of penalty under Part X of Chapter X against defaulters in respect of cases under audit;

    (h) Perform any other functions in determining and computing income chargeable to tax and correct tax payable under the said Ordinance and Rules made thereunder;

    (i) To process / finalize complaints in respect of existing taxpayers’ cases;

    (j) Implementation of audit planning and audit strategy in accordance with audit guidelines and audit manuals developed by FBR or Member (Taxpayers’ Audit);

    (k) To grant approval for revision of return of income and wealth statements;

    (l) Disposal of external / internal audit paras related to audit;

    (m) Giving effect to orders of the appellate authorities / FTO orders related to audit;

    (n) Any other audit functions assigned the Chief Commissioner Inland Revenue or FBR for achieving the purpose of the Income Tax Ordinance, 2001 & Rules and Procedures framed thereunder.

    Sales Tax:

    (a) Audit and assessment of registered persons;

    (b) Risk based audit through profiling and analysis;

    (c) Recovery of un-disputed liability detected during audit;

    (d) Monitoring of audit schedule, etc.;

    (e) Maintenance and analysis of audit records and audit related database;

    (f) Post refund audit and scrutiny;

    (g) Deregistration audit;

    (h) Investigative audit in cases related for audit under Section 38 of the Sales Tax Act, 1990, and exercise of powers under Section 38A and 38B in respect of cases under audit;

    (i) Implementation of audit planning and audit strategy in accordance with audit guidelines and audit manuals developed by FBR or Member (Taxpayers’ Audit);

    (j) Disposal of external/internal audit paras related to audit;

    (k) Granting approval for the revision of returns;

    (l) Grant of extension in time/condonation of delay in respect of audit related functions as per the relevant provisions of Sales Tax Act and Rules made thereunder;

    (m) Exercise of powers under Section 38 regarding functions/assignments related to cases selected for audit;

    (n) Exercise of powers under section 45A(4) in respect of the cases related to audit functions;

    (o) Rectification of mistakes in respect of orders relating to audit functions;

    (p) Giving effect to orders of the appellate authorities/FTO orders relating to audit;

    (q) Any other audit function given by the Chief Commissioner Inland Revenue or FBR for achieving the purpose of Sales Tax Act, 1990 and Rules and Procedure framed thereunder.

    Federal Excise:

    (a) Audit and assessment of registered persons;

    (b) Risk based audit through profiling and analysis;

    (c) Maintenance and analysis of audit records and audit related database;

    (d) Implementation of audit planning and audit strategy in accordance with audit guidelines and audit manuals developed by FBR or Member (Taxpayers’ Audit);

    (f) Disposal of external / internal audit paras related to audit;

    (g) Granting approval for the revision of return;

    (h) Grant of extension in time / condonation of delay in respect of audit related functions as per the relevant provisions of Federal Excise Act 2005 and Rules made thereunder;

    (i) Rectification of mistakes in respect of orders relating to audit functions;

    (j) Exercise of powers and chapter IV of FED Act, 2005 regarding functions/assignments related to audit to the extent of conducting search of a premises;

    (k) Any other audit function given by Chief Commissioner Inland Revenue or FBR for achieving the purpose of Federal Excise Act, 2005 and Rules and procedures framed thereunder.

    The Commissioner Enforcement shall have powers and functions included:

    Income Tax:

    (a) Enforcement, recovery and collection of income tax;

    (b) Ensuring and enforcing compliance of the statutory provisions regarding filing of statutory returns, statements, furnishing of information, maintenance of prescribed accounts, documents and records; imposition of penalty and taking other action under the law against non-compliant taxpayers;

    (c) Best judgment assessment under Section 121, except in cases under audit;

    (d) Provisional Assessment under the Tenth Schedule;

    (e) Monitoring of deduction, collection and payment of tax at source by withholding/collecting agents; issuance of exemption/lower rate certificates and charging of tax on defaulting withholding/collecting agents;

    (f) Passing orders under Division IV of Part V of Chapter X of the Income Tax Ordinance, 2001;

    (g) Imposition of penalty and charging default surcharge for non-filing of statutory statements and default of withholding/payment of withholding taxes;

    (h) To make any other related action under the provisions of the Income Tax Ordinance, 2001 regarding withholding taxes;

    (i) Effect collection and recovery of tax under Part-IV and V of Chapter X;

    (j) Determine and issue refunds under Part-VI of Chapter-X including refund adjustments;

    (k) Rectification of mistakes in respect of orders relating to the enforcement functions;

    (l) Giving effect to orders of the appellate authorities / FTOs orders relating to enforcement;

    (m) Rectification of cases not related to audit;

    (n) Launching prosecution under Part-XI of Chapter-X;

    (o) Disposal of international and external audit observation / paras other than those related to audit and assessment;

    (p) Imposition of penalty under Part-X of Chapter-X except the cases under audit;

    (q) Revision of assessment under Section 122A in respect of enforcement related cases;

    (r) Grant of extension in filing of returns/statements;

    (s) Any other powers and functions not specifically assigned to any other commissioner Inland Revenue;

    (t) Exercise powers under Section 175 and 176 in respect of cases other than cases under audit;

    (u) Any other enforcement related powers and functions assigned by the Chief Commissioner Inland Revenue or FBR for achieving the purpose of the Income Tax Ordinance, 2001 and Rules and procedures framed thereunder.

    Sales Tax:

    (a) Enforcement and collection of sales tax;

    (b) Recovery action under section 11 of the Sales Tax Act, 1990 against non-filers and short-filers, and any other auction under Section 11 for enforcement related functions, except the cases under audit;

    (c) Suspension, black listing and deregistration of the registered persons;

    (d) Enforcement of returns;

    (e) Sales Tax registration;

    (f) Processing and sanctioning of refund claims filed under Section 10 and 66 of the Sales Tax Act, 1990;

    (g) Reporting of Revenues;

    (h) Disposal of international and external audit observations/paras related to enforcement functions;

    (i) Disposal of CREST discrepancies;

    (j) Industrial Surveys;

    (k) Powers and functions regarding investigation, prosecution and arrest of a person;

    (l) Implementation of enforcement planning and strategy in accordance with guidelines developed by the FBR;

    (m) Extension in time/condonation of delay regarding filing of returns/refund claims;

    (n) Authorization of zero rated/concessionary imports and local purchases;

    (o) Exercise of powers under Section 38, 38A and 38B regarding functions/assignments related to enforcement;

    (p) Exercise of powers under section 40B and 40C;

    (q) Exercise of powers under section 45A(4) in respect of cases related to enforcement functions;

    (r) Giving effect to orders of appellate authorities / FTO orders relating to enforcement;

    (s) Rectification of mistakes in respect of orders relating to enforcement functions;

    (t) Any other powers and functions not specifically assigned to any other commissioner Inland Revenue;

    (u) Any other enforcement related power function assigned by the Chief Commissioner Inland Revenue or FBR for achieving the purpose of Sales Tax Act 1990 and Rules made there under.

    Federal Excise:

    (a) Enforcement and Collection of Federal Excise;

    (b) Processing and sanctioning of refund claims filed under Federal Excise Act 2005;

    (c) Enforcement of returns and registration of persons liable to be registered;

    (d) Reporting of Revenue;

    (e) Disposal of internal and external audit observations/paras/Crest discrepancies related to enforcement functions;

    (f) Implementation of enforcement planning and strategy in accordance with guidelines developed by the FBR or Member (Enforcement and Accounting);

    (g) Extension in time / condonation of delay for filing of return;

    (h) Exercise of powers under chapter IV of the FED Act 2005 with the exception of the powers and functions assigned to Commissioners Inland Revenue Audit.

    (i) Rectification of mistakes in respect of orders relating to enforcement functions;

    (j) Any other powers and functions not specifically assigned to any other Commissioner Inland Revenue;

    (k) Any other enforcement related power and function assigned by the Chief Commissioner Inland Revenue or FBR for achieving the purpose of Federal Excise Act, 2005 and Rules and Procedures framed thereunder.

    The Commissioner Legal shall have powers and functions included:

    Income Tax:

    (a) Defending appeals before Commissioner Inland Revenue (Appeals), instituting and defending departmental appeals and references under Part-III of Chapter X, prosecution of cases instituted under any provision of the Income Tax Ordinance, 2001, filing and pursuing CPLAs in the Supreme Court of Pakistan, and representing the department in the process of liquidation;

    (b) Defending complaints before Federal Tax Ombudsman (FTO);

    (c) File/defend presentations before the President of Pakistan;

    (d) Appoint legal advisors and assign cases, wherever required, for representation before appellate fora;

    (e) Grant recognition/approval to provident funds, superannuation funds, and gratuity funds under the Sixth Schedule; and exercise all the powers under the said Schedule;

    (f) Grand of approval to Non-Profit Organizations under Section 2(36).

    (g) Any other legal functions assigned by the Chief Commissioner Inland Revenue or the FBR for achieving the purposes of Income Tax Ordinance, 2001 and Rules made thereunder.

    Sales Tax:

    (a) Preparation, institution, follow up and defense of cases before Supreme Court, High Court, Appellate Tribunal;

    (b) Preparation, follow-up and defense of cases before Commissioner (Appeals) and Alternative Dispute Resolution Committee;

    (c) Matters relating to Federal Tax Ombudsman (FTO); and

    (d) Any other legal function assigned by the Chief Commissioner Inland Revenue or the FBR for achieving the purpose of Sales Tax Act, 1990 and rules made thereunder.

    Federal Excise:

    (a) Preparation, institution, follow up and defense of cases before Supreme Court, High Court, Appellate Tribunal;

    (b) Preparation, follow-up and defense of cases before Commissioner (Appeals) and Alternative Dispute Resolution Committee;

    (c) Matters relating to Federal Tax Ombudsman (FTO); and

    (d) Any other legal function assigned by the Chief Commissioner Inland Revenue or the FBR for achieving the purpose of FED Act 2005 and rules made thereunder.

  • Withholding tax rate on educational fee updated

    Withholding tax rate on educational fee updated

    ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rate on payment of educational fee for tax year 2021.

    The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) after incorporating amendment to Income Tax Ordinance, 2001 through Finance Act, 2020.

    Under Section 236I of Income Tax Ordinance, 2001, every person preparing fee voucher or challan shall collect/deduct withholding tax from the person depositing/paying fee at the time of payment of fee. The tax paid as withholding tax is adjustable against payable tax liability.

    Every Educational institution has to collect advance tax on the amount of fee (inclusive of tuition fee & all charges received by the educational institution, by whatever name called, excluding the amount which is refundable) exceeding Rs. 200,000 per annum ( other than an amount paid by way of scholarship) at the rate of five percent from the persons not appearing in the Active Taxpayers List (ATL).

    Through Finance Act, 2020 the persons filing income tax returns and are on the ATL are no more require to pay advance tax at the time of paying educational fee.