An attempt by a businessman to suppress sales chargeable to tax in order to reduce tax liability shall be taxed under the head of income from business, according to the Finance Act 2020 recently passed by the National Assembly.
(more…)Category: Taxation
Stay updated on taxation news, tax laws, FBR policies, compliance, audits, income tax, sales tax, and fiscal developments in Pakistan.
-
Finance Act 2020: taxpayers given deadline of December 31 to update profile
ISLAMABAD: Federal Board of Revenue (FBR) has given taxpayers a deadline of December 31, 2020 to complete their profile through online system otherwise their name will be removed from active taxpayers list (ATL).
The National Assembly approved the new amendment of taxpayers profiling through new section 114A to Income Tax Ordinance, 2001.
Section 114A: Taxpayer’s profile:
Sub-section 1: Subject to this ordinance, the following persons shall furnish a profile, namely:
(a) Every person applying for registration under section 181;
(b) Every person deriving income chargeable to tax under the head, “income from business”;
(c) Every person whose income is subject to final taxation;
(d) Any non-profit organization as defined in clause (36) of Section 2;
(e) Any trust or welfare institution; or
(f) Any other person prescribed by the Board [FBR].
Sub-section 2: A taxpayer’s profit:-
(a) Shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed;
(b) Shall fully state, in the specified form and manner, the relevant particulars of –
(i) Bank accounts;
(ii) Utility connections;
(iii) Business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer;
(iv) Types of businesses; and
(v) Such other information as may be prescribed;
(c) Shall be signed by the person being an individual, or the person’s representative where section 172 applies; and
(d) Shall be filed electronically on the web as prescribed by the Board [FBR].
Sub-section 3: A taxpayer’s profile shall be furnished:-
(a) On or before the 31st day of December 2020 in case of a person registered under Section 181 before the 30the day of September, 2020; and
(b) Within ninety days registration in case of a person not registered under section 181 before the 30th day of September,2020.
Sub-Section 4: A taxpayer’s profile shall be updated within ninety days of change in any of the relevant particulars of information as mentioned in clause (b) of sub-section (2).
-
Nausheen Amjad removed from post of FBR chairperson
ISLAMABAD: The government on Saturday removed the chairperson of Federal Board of Revenue (FBR) Ms. Nausheen Javaid Amjad and assigned look after charge to another senior officer of Pakistan Customs Service (PCS) with immediate effect.
Ms. Nausheen Javaid Amjad was assigned the post of FBR chairperson on April 08, 2020 after the resignation of Syed Muhammad Shabbar Zaidi, who served as FBR Chairman from private sector during May 10, 2019 to April 08, 2020.
Sources said that the removal of Ms. Nausheen was linked to the tax profile of wife of Justice Qazi Faiz Essa. The sources said that Ms. Nausheen had not compromised the integrity of tax department.
The Establishment Division on Saturday issued a notification and assigned additional charge of the post of FBR Chairman to Muhammad Javed Ghani, a BS-22 officer of PCS, presently posted as Member, FBR, for a period of three months or till the posting /appointment of a regular incumbent, whichever is earlier, with immediate effect.
-
FBR extends date for retail outlet integration up to August 31
ISLAMABAD: Federal Board of Revenue (FBR) on Friday extended date for retailers to integrate their Point of Sale (POS) up to August 31, 2020.
The last date for integrating the POS for Tier-1 retailers was June 30, 2020.
The FBR said that only those retailers can integrate their POS by August 31 who submit their intention to RTOs/LTUs by August 20, 2020.
FBR sources said that the decision had been taken due to lockdown in the many parts of the country in order to prevent spread of coronavirus the business activities had become stand still.
They said that big outlets and shopping plazas are observing closure during the lockdown and many of those big retailers would not able to make compliance.
The deadline was expired on December 15, 2019 which was given by the FBR to tier-1 retailers to integrate their POSs with the FBR online system. However, the date was extended in order to give opportunity to big retailers to make compliance.
All tier-1 retailers are required to integrate all their POSs with FBR’s computerized system.
Tier-1 retailer is defined in section 2(43A) of the Sales Tax Act, 1990, to be a person who falls in any of the following categories:
(a) a retailer operating as a unit of a national or international chain of stores;
(b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
(c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees twelve hundred thousand;
(d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers; and
(e) a retailer, whose shop measures one thousand square feet in area or more.
-
Finance Act 2020: Commissioner empowered to cancel exemption certificate
ISLAMABAD: A commissioner of Inland Revenue has been authorized to cancel or modify exemption certificate issued automatically by online system IRIS.
Through Finance Act, 2020 amendment has been made to Section 153 of Income Tax Ordinance, 2001.
As per the amendment the commissioner of Inland Revenue of Federal Board of Revenue (FBR) is required to issue certificate to taxpayer within prescribed time frame. However, if application is filed by taxpayer and commissioner fails to take action than the IRIS will automatically issue certificate to the taxpayer.
However, the commissioner is empowered to modify or cancel the certificate on reasonable ground.
The amendment in this regard is as:
“Provided that the Commissioner shall issue certificate for payment under clause (a) of sub-section (1) without deduction of tax within fifteen days of filing of application to a public company listed on a registered stock exchange in Pakistan if advance tax liability has been discharged.
“Provided further that the Commissioner shall be deemed to have issued the exemption certificate upon the expiry of fifteen days to the aforesaid public listed company and the certificate shall be automatically processed and issued by Iris:
“Provided also that the Commissioner may modify or cancel the certificate issued automatically by IRIS on the basis of reasons to be recorded in writing after providing an opportunity of being heard.”
-
Customs to allow provisional release in ADD case
ISLAMABAD: The customs authorities shall allow provisional release of goods on bank guarantee where levy of anti-dumping duty (ADD) challenged in court of law.
Through Finance Act, 2020 applicable from July 01, 2020 amendment has been made in Anti-Dumping Duties Act, 2015.
As per the amendment: “ … where a competent court of law has stayed preliminary or final determination of anti dumping duly, goods shall be provisionally released against security in shape of bank guarantee or pay order of a scheduled bank along with indemnity bond equal to the amount of anti-dumping duty imposed on subject goods.
“In case preliminary or final determination is upheld by the court, duty shall be paid by the importer and security with the customs department shall be released otherwise the same shall be en-cashed to settle the duty liability.
“If the preliminary or final determination is set aside by the court, security shall be released, if not required for recovery of any outstanding previous liability.”
-
SBP seeks feedback on automaton of tax refund payment
KARACHI: State Bank of Pakistan (SBP) has invited business community to provide feedback on an ongoing project of automation of payment of tax refunds by the central bank.
Dr. Reza Baqir, Governor, SBP held the online meeting with the business community today to seek feedback on an ongoing project of automation of payment of tax refunds by SBP.
The meeting was attended by the office bearers of Pakistan Business Council (PBC), Federation of Pakistan Chambers of Commerce and Industries (FPCCI) and Chambers of Commerce and Industries of various cities.
Governor SBP in his opening remarks introduced SBP’s Automation of Payment of Tax Refunds Project saying that after automation of government’s revenue collections, efforts are underway by SBP to automate the government’s payments to ensure transparency, efficiency and public convenience.
He said that improving ease of doing business is one of the shared goals of the government and SBP for its significant potential impact on boosting economic activity in the country.
Governor Baqir remarked that Automation of payment of Tax Refunds Project is a part of SBP efforts in this direction in collaboration with FBR and Pakistan Customs. Adding further, he said that since the project is ultimately going to benefit the businesses, it is important that the system is developed in consultation with all the stakeholders including the businesses.
He emphasized that, in this regard, feedback of businesses is very important since they are the key stakeholders.
A senior SBP official gave a detailed presentation on the project elaborating that the project constituted two broader components, automation of payment of duty drawback claims and the automation of payment of sales tax refunds.
After highlighting the issues in the existing mechanisms he explained that how the automation will simplify the processes and bring efficiency in terms of time saving and human resources.
He highlighted that there will be minimal human intervention in processing and payment of refund claims as the system generated payment messages will be sent to SBP on real time basis through an interface between FBR/Pakistan Customs and SBP for crediting the funds in the claimants’ account.
The representatives of Chambers of Commerce appreciated the initiative of SBP and provided valuable feedback. They also assured their cooperation to SBP in the development of this project of national importance.
-
SRB collects Rs105.9 billion in challenge economic situation
KARACHI: Sindh Revenue Board (SRB) has collected Rs105.9 billion as sales tax on service during fiscal year 2019/2020 despite challenging economic situation due to COVID-19.
According to a statement released on Wednesday the SRB collected Rs105.9 billion during fiscal year 2019/2020 as compared with Rs100.3 billion in the preceding fiscal year, showing 5.58 percent growth.
Out of total collection the SRB collected Rs5.6 billion as workers welfare fund.
“The milestone that SRB has reached represents a consistency of achievements, it has built since organization’s inception in 2011, courtesy the hard work and steadfastness demonstrated by its workforce, in work-culture dedicated to professional values,” according to the statement.
The year 2019/2020 had a particular significance arising from COVID-19. The employees put in their best, working beyond the normal call of duty, despite the lockdown, six days – week in the face of difficult circumstances arising from the pandemic.
The SRB also praised the taxpayers for their trust and cooperation ant the continuous support of the Sindh government without which the landmark performance of SRB would not have been possible.
The SRB is now eying on an overall target of Rs135 billion during 2020/2021 with a year on year growth of 27.5 percent.
-
FBR exempts customs duty on oxygen gas, cylinder import
In response to the ongoing COVID-19 pandemic, the Federal Board of Revenue (FBR) announced on Wednesday an exemption from customs duty on the import of oxygen gas and oxygen gas cylinders. This measure aims to ensure the availability of these essential supplies as the country battles the spread of the virus.
(more…) -
Security forces to provide monthly details of confiscated smuggled goods to FBR
ISLAMABAD: Security forces engaged in anti-smuggling activities to submit monthly seizure report to Federal Board of Revenue (FBR).
The FBR issued SRO 578, 579 and 580(I)/2020 to amend Customs Act, 1969 making it mandatory for security forces to furnish monthly report of seizure report to the customs authorities.
The FBR has entrusted Frontier Corps, Pakistan Rangers, Pakistan Maritime Security Agency and Pakistan Coast Guards to exercise the powers of customs authorities in preventing smuggling.
The Pakistan Rangers and Frontier Corps have been authorized to exercise powers of customs officials against smuggling since 2010. Meanwhile, Pakistan Maritime Security Agency and Pakistan Coast Guards was entrusted to exercise powers of customs officials since 2014.
The FBR every year extends the authority in the month of June. Through the latest SROs the FBR extended the powers till June 30, 2021.
As per the SROs the law enforcement agencies are required to provide details of seized goods/vehicles handed over to Pakistan Customs in a month to the Collector of Customs (Enforcement and Compliance) within their respective jurisdiction by 5th day of each month.