ISLAMABAD: The income tax return filing of tax year 2018 has reached to a new peak at 2.8 million by February 16, 2020, according to latest Active Taxpayers List (ATL) issued by Federal Board of Revenue (FBR).
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Tax authorities capture huge cash transactions of dress designers; start assessment
KARACHI: Tax authorities have captured millions of rupees cash transactions by many dress designers. The authorities are now making assessment on the basis of such transactions for imposing income tax for past five years, sources said on Wednesday.
The sources said that the tax authorities had captured the cash transactions while disguising themselves as customers during their visits to those places where mostly wedding dresses were being displayed for sale.
Regional Tax Office (RTO) II, Karachi, a revenue collecting arm of Federal Board of Revenue (FBR), identified such dress designers, who were evading income tax. The office issued notices to explain the reasons of very low amount of tax payment or no payment of tax at all.
The tax office during survey found that there was a sector of marriage dress designers, who charge exorbitant amount for the bridal dress making.
Some of the designer even charge millions for a single dress but when their income tax returns were analyzed it was found that quite a large number of these dress designers are paying very meager amount of tax i.e. their declared income does not commensurate with their receipts.
Some of them are even not on tax roll.
The RTO-II Karachi identified the following dress designers:
01. Shehrnaz
02. Nada Tai
03. Aisha Ahmed
04. Wardha Saleem
05. Sanam Chaudhri
06. Sania Maskatiya
07. Cartes by Pasho
08. Silhouettes by Ash & Uzma
09. Nida Azwer
10. Waqar J. Khan
11. Kavalier Laser Cut Innovations
12. Rozina Munib
13. Ayesha Sarfaraz
14. Farida Qureshi
15. Saleha
16. Mahin
17. Natasha Kamal
18. Basic
19. Sarah Arshad Gilani
20. Amna Chaudhry
21. Chikankari
22. House of Farah V
23. Sable Vogue
24. Zuri by Zainab Fawad
The sources said that the returns of above were being analyzed and desk audit was being conducted.
The information obtained about their income would be cross matched with declared income and wealth statement filed and withholding statement filed by withholding agents.The tax office estimated huge loss of revenue would be detected.
Notices under section 176 of Income Tax Ordinance, 2001 have been issued and further progress would be finalized by February 27, 2020.
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IR officers to get information of importers through online customs system
KARACHI: The officers of Inland Revenue to access online system of customs clearance for monitoring of withholding tax collected from importers.
The sources in Federal Board of Revenue (FBR) said that the Collectors of Customs of Sea Ports/Dry Ports are obliged to collect withholding tax on imports as per prescribed rates.
In the case of goods/equipments imported through Airways, each Collector is obliged to collect tax at the time of clearance. Statements are to be filed on monthly basis.
Tax under this section is collected from all, except from the imports by Government or exempt entities on the basis of certificate issued by a Commissioner.
The sources said that Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) have access to WeBOC – the online customs clearance system – for accessing the documents filed by importers for determination of withholding tax at import stage.
According to official documents for monitoring of withholding taxes, said that the authorized officer of each RTO should coordinate with Customs authorities, hold macro analysis of imports by Government, by other agencies, those treated exempt, and perform the system audit of imports, if required.
The exemptions allowed to the imports made by exempt entities, the cases where Commissioner issued exemption certificates or SRO based exemptions were allowed; need to be examined to ascertain their admissibility.
Categorization of imports, as provided in the online system should be strictly enforced by the Customs authorities. Concerned RTO should coordinate the matter accordingly.
A centralized web based system has been introduced for issuance of certificates by the Commissioners and creation of a centralized Database.
On-line verification of certificates by the concerned authorities will form part of it. This is necessary for ascertaining the genuineness of exemption certificates.
PRAL should send the data received from NBP/Customs House to each RTO on daily basis.Tax collected as per Customs data and tax actually deposited in NBP and reported through CAP should be reconciled by PRAL on monthly basis with the RTO as part of normal exercise for reconciliation of revenue. Discrepancies should be reported to concerned Collector/ PRAL for reconciliation.
A comprehensive scheme of allotting tax numbers is in place. All importers should essentially have a Tax Registration Number that is either NTN or Free Tax Number (FTN) and no import should be allowed without a valid tax number.
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FBR bans leaves of officials for revenue collection
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday banned all kind of leaves of its officers and officials with immediate effect in order to collect revenue in the remaining period of current fiscal year.
In an official note issued by the FBR said that it had been observed with concern that field formations of the FBR were forwarding requests for grant of leaves, including ex-Pakistan leave despite the fact that the third quarter (January March) of the current fiscal year was nearing its completion and the entire tax machinery was required to accelerate its efforts to achieve the assigned budgetary targets through full devotion during the balance part of the current financial year.
Therefore, it has been decided by the FBR that requests for grant of ex-Pakistan leaves may not be forwarded to the board by the respective heads of field formations till June 30, 2020, except, requests for Hajj, Umrah and Ziarat.
“All such cases shall be processed in the Board after the beginning of next financial year,” the FBR said.
“Similarly, local leaves/leaves of other kind may also not be granted liberally and may only be allowed in the light of special circumstances/hardship cases,” the FBR added.
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Customs Intelligence Peshawar announces auction of confiscated vehicles on Feb 25
ISLAMABAD: Customs Intelligence and Investigation (I&I) Peshawar announced auction of confiscated imported vehicles to be held on February 25, 2020.
Following vehicles will be presented for the auction:
01. Land Rover Jeep, 1998, Chassis No. SALNAAAXA655472
02. Toyota Corolla Star Car, 1996, Chassis No. CE108-0032262
03. Mitsubishi Pajero Jeep, 1993, Chassis No. CONV140PJ00312
04. Suzuki Pickup, 1998, Chassis No. DC51T-557884
05. Toyota Corolla X Motor Car, 2001, Chassis No. NZE121-3056035
06. Toyota Hilux Double Cabin, 1988, Chassis No. LN56-0093247
07. Toyota Prius (Hybrid) Motor Car, 2004, Chassis No. NHW20-0085924
08. Toyota Premio Motor Car, 2005, Chassis No. NZT240-0072365
09. Toyota Passo Motor Car, 2010, Chassis No. KGC30-0043640
10. Toyota Prius Motor Car, 2011, Chassis No. ZVW30-1397771
11. Toyota Prius Motor Car, 2010, Chassis No. ZVW30-0156740
12. Toyota Fielder X Motor Car, 2001, Chassis No. NZE21-0086032
13. Toyota Coaster, 1992, Chassis No. BB21-0019007
14. Toyota Mark X Motor Car, 2005, Chassis No. GRX120-0024497
15. Toyota Prado Jeep, 2007, Chassis No. VZJ95-0007146
16. Toyota Mark X Motor Car, 2010, Chassis No. GRX130-6010799
17. Toyota Fielder X Motor Car, 2006, Chassis No. NZE121-3372613
18. Toyota Fielder Motor Car, 2002, Chassis No. NZE121-0130413
19. Toyota Prius Motor Car, 2008, Chassis No. NHW20-7772146
20. Hino Truck, 1997, Chassis No. FC3JJB-10973
21. Suzuki Pick Up 1990, Chassis No. DA51T-127733
22. Suzuki Pick Up, 1988, Chassis No. DD51T-554919
23. Suzuki Pick Up 1990, Chassis No. DB51T-122435
24. Suzuki Pick Up 1990, Chassis No. DB51T-130366
25. Suzuki Pick Up 1997, Chassis No. DB51T-463280
26. Suzuki Pick Up 1990, Chassis No. DB51T-135702
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Stockbrokers to provide information under AEOI
KARACHI: Federal Board of Revenue (FBR) has asked stock brokers to provide information of foreign investors for Automatic Exchange of Information (AEOI).
Pakistan Stock Exchange (PSX) on Tuesday referring to the FBR notice related to filing of Common Reporting Standards (CRS) Reports 2020.
The FBR said that the Reporting Financial Institutions (RFIs) are required to obtain, maintain and file CRS information in accordance with Section 165B and 107(1) of Income Tax Ordinance, 2001 and the Common Reporting Standards Rules contained in Income Tax Rules, 2002.
The said information has to be reported to FBR on annual basis on May 31 through the AEOI portal. The reports from RFIs are due on May 31, 2020.
The FBR asked the stock exchange to direct the RFIs to ensure timely compliance as per law and rules, failing which the RFIs shall be penalized under Section 182 of the Income Tax Ordinance, 2001.
Under Section 165B of Income Tax Ordinance, 2001 furnishing of information by financial institutions, including banks, is mandatory.
(1) Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act,1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of1947) and any regulations made under the State Bank of Pakistan Act,1956 (XXXIII of 1956) on the subject, every financial institution shall make arrangements to provide information regarding non-resident or any other reportable persons to the FBR in the prescribed form and manner for the purpose of automatic exchange of information under bilateral agreement or multilateral convention.
(2) All information received under this section shall be used only for tax and related purposes and kept confidential.
(3) For the purpose of this section, the terms “reportable person” and “financial institution” shall have the meaning as provided in Chapter XIIA of the Income Tax Rules, 2002.
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FBR extends ST, FE return date up to February 26
KARACHI: Federal Board of Revenue (FBR) has extended the last date for filing sales tax (ST) and federal excise (FE) return for the month of January 2020 up to February 26, 2020.
The FBR issued a notification on Tuesday addressing all chief commissioners Inland Revenue of Large Taxpayers Units and Regional Tax Offices to inform about extension in date of submission of sales tax and federal excise return for the tax period of January 2020.
The FBR said that the date has been extended for submission of sales tax and federal excise return up to February 26, 2020 for the tax period of January 2020, which was due on February 18, 2020.
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FBR drafts rules to make recovery
ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued draft rules for making recovery from persons holding money on behalf of taxpayers.
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Clearance resumes as EPA clears Custom House building
KARACHI: Customs clearance has been resumed after a briefed period of closure as Environment Protection Agency (EPA) cleared the Custom House Karachi from any threat owing to spread of toxic gas.
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LTU Karachi posts 15% growth in revenue collection
KARACHI: Large Taxpayers Unit (LTU) Karachi has registered 15 percent growth in revenue collection during first seven months of current fiscal year, a statement said on Monday.
The LTU Karachi said that it had collected Rs796 billion during July – January 2019/2020 as compared with Rs690 billion in the corresponding period of the last fiscal year.
The unit collected Rs108 billion during January 2020 as compared Rs92 billion collected in the corresponding month of the last year.
The payment of refunds including income tax and sales tax has increased by 42 percent during the period under review. The unit paid Rs31 billion as refunds during first seven months of current fiscal year as compared with Rs22 billion in the corresponding months of the last year.
The unit attributed the collection growth to strong enforcement as well as on site monitoring of production of various sectors including oil, gas, sugar and cement.
Further, various tax evasion and tax avoidance cases have been detected, which are under investigation and substantial tax collection is expected during the coming months of current fiscal year, the unit said.
Besides, during the month of January, current and arrear demand has been recovered at Rs2.7 billion against Rs2.5 billion for the corresponding month of the last year.