KARACHI: The Federal Board of Revenue (FBR) has announced that there will be no further extensions for filing income tax returns for the tax year 2019. Taxpayers have six days left to submit their returns, with the final deadline set for November 30, 2019. According to sources within the FBR, this decision comes after multiple extensions were granted to facilitate compliance.
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MCC Preventive announces vehicles’ auction on Nov 25
KARACHI: Model Customs Collectorate (MCC) Preventive, Karachi announced auction of confiscated vehicles to be held on November 25, 2019 at Ghasbandar East Wharf, Karachi.
Following vehicles will be presented for auction:
01. Toyota Lexus Car, Reg. No. UC-868, Model 2006, Chassis No. JTHBG 963905034702
02. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999cc, Chassis No. MCU-10-0013510
03. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, Chassis No. JZX110-6000922
04. Toyota AXIO-X car – White Color, Reg. No. BFE-068, 1496cc, Model 2007, Chassis No. NZE-141-6028039
05. Toyota Land Cruiser Jeep, Silver Color, Reg. No. BG-1131, Model 1989,3400cc, Chassis No.BJ 60-023765
06. Mercedes Benz Saloon Car Black, Reg. No. BFF-014, Model 2007, Chassis No. WDD2193222A117436
07. Toyota Land Cruiser Jeep P. White, Reg. No. LZN-888, Model 1999, 4663cc, Chassis No. UZJ 100-0081129
08. Toyota Surf Jeep White, Reg. No. BF-9252, Model 1998, Chassis No. RZN185-9019896
09. Toyota Hilux Surf Jeep, Reg. No. CJ-4242(Sindh), Model 1990, 2446cc, Chassis No. LN130-0026273
10. Nissan X-Trail 5 Door Jeep – Pearl White, Reg. No. GR-621, Model 2005, Chassis No. NT 30-100374
11. Toyota Mark X Car Trim, Reg. No. BFB-837, Model No. 2005, 2499cc, Chassis No. GRX 120-3007142
12. Toyota Land Cruiser Jeep (Petrol) White, Reg. No. BF-5933, Model 1995, 4476cc, Chassis No. FZJ 80-0109507
13. Honda Civic Hybrid Car, Reg. No. AND-312, Model No 2008, 1339cc, Chassis No. FD 3-1203642
14. Toyota PASSO car, Reg. No. G5-6996, Model 2006, 996cc, Chassis No. KGC 30-0044392
15. Toyota AXIO Car, Reg. No. KCH-434, Model 2006, 1496cc, Chassis no. NZE141-6003694
16. Mercedes Benz Saloon car (AG), Reg. No. AB 1001, Chassis No. WDB1240312B476728
17. Toyota Hilux Surf Jeep, Reg. No. UU-691, Model 1992, 240cc, Chassis No. LN130-7022502
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FBR initiates action against concealed amounts in immovable property purchases
ISLAMABAD: Federal Board of Revenue (FBR) has initiated scrutiny of transactions of immovable properties, especially those where amnesty was availed, sources said.
The sources said that the FBR had initiated examination of transactions of sales and purchases of immovable properties during past years, in order to find out the quantum of amount concealed or not declared.
It is believed that huge amount of black money was parked in the real estate business. The buyers and sellers deliberately are not showing actual value of the properties in their agreements.
The sources said that the FBR obtained data under Section 236C, Section 236K and Section 236W of the Income Tax Ordinance, 2001.
They said that the investigation of property transactions would be of past five years.
The seller was required to pay advance tax under Section 236C. Similarly, buyer was required to pay withholding tax under Section 236K. Meanwhile, a buyer is allowed to pay 3 percent income tax to whiten money invested in property purchase. This amnesty was allowed to undisclosed amount that is invested to the extent of values notified by the FBR.
The sources said that the FBR headquarters had transferred thousands of cases of immovable properties to field formation of Inland Revenue.
The FBR collected information of buyers and sellers of immovable properties from property registrar offices of the provinces.
The field formations have been asked to identify those persons who had not filed their income tax returns and wealth statement.
The field formations would initially send those persons who made transactions but had not filed their returns.
Under Section 114 of the Income Tax Ordinance, 2001 the following owners of immovable properties are required to file income tax returns:
— owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;— owns immoveable property with a land area of five hundred square yards or more located in a rating area;
— owns a flat having covered area of two thousand square feet or more located in a rating area.
The FBR has also asked the field formations to investigate the payments made for property transactions. The sources said that the FBR collected withholding tax on the notified valuation tables for immovable properties.
The notified values of the FBR were very low when compared with the open market values. Therefore, there was ample chance of concealment in property transactions.
The field formation will ask banks to provide details of identified persons, especially the transactions recorded by the banks for the payment of properties.
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Customs foils bid to smuggle explosive material in garb of toys consignment
KARACHI: Customs authorities have foiled a bid to smuggle explosive material into Pakistan in the garb of toy consignments, a statement said on Saturday.
According to details Model Customs Collectorate (MCC) Port Muhammad Bin Qasim foiled the bid to smuggle into Pakistan a consignment of explosive filled fireworks/firecrackers in the garb of toys and fun fair items.
M/s. Abrar Traders, Lahore, through his clearing agent A R Logistics has filed the goods declaration for clearance of imported assorted toys and fun fair items.
However, upon detail examination scrutiny by the collectorate staff, fireworks and fireworks crackers guns were found willfully concealed within the cartons of assorted toys.
The explosive/firecrackers are restricted items as per Import Policy Order and prone to smuggling under Section 2(s) of the Customs Act, 1969.
Accordingly, the collectorate seized the consignment and lodged an FIR. Further investigations are underway.
Mumtaz Ali Khoso, the collector of customs, appreciated the examination staff for detecting the case and reiterated the resolve not to allow any illegal activity at Port Qasim by unscrupulous elements.
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Procedure to change personal tax details
ISLAMABAD: Federal Board of Revenue (FBR) has issued procedure to facilitate taxpayers in amending their personal details for filing tax returns and making transactions.
The FBR said that that a person can change their registration information recorded for filing Income Tax Return in three possible ways.
Changing information through Iris, a person can change/update information by logging into Iris.
Information can be updated by the person through Registration Form 181 (filed for modification) Income Tax, which included: Mobile number; Email; Personal/Residential Address; Business Address; Addition of Business Branches; Legal Representative u/s 87 of Income Tax Ordinance 2001; Bank Account.
Changing information through Federal Board of Revenue (FBR) helpline, a person can also change or update information through FBR helpline via phone or email.
Information can be updated through the helpline: Name; Date of Birth; Gender; Disability Status; Senior Citizen Status.
Changing Information by visiting Regional Tax Office (RTO)
The person will have to visit their relevant RTO For changes in registration regarding issues, included: Discontinuance of business; Jurisdiction for Income Tax Return assessment; Deregistration; Updating CNIC number; Updating Pakistan Origin Card (POC).
A person will have to take relevant documents to RTO in order to successfully change details regarding Income Tax Registration.
Officials in FBR said that the procedure can help taxpayers in updating their profile on the official web portal in order to make their return filing correct and accurate. This will also help taxpayers to avoid any hassles in future.
The return filing date for tax year 2019 is due on November 30, 2019.
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Customs launches ‘authorized economic operators’ program for business entities
ISLAMABAD: Pakistan Customs has launched Authorized Economic Operators (AEO) program for business entities in order to provide maximum facilitation the trade and industry.
A statement on Friday said that the federal government has launched first trade facilitation program of its kind under the name and banner of AEO.
The program has been chalked out in line with best international practices and in accordance with World Customs Organization (WCO) security standards.
Under the said program, the government will certify trustworthy business entities which could demonstrate that they are credible, secure and have a clean history of compliance with national laws and, in return, a policy of maximum facilitation will be adopted by all government departments toward such trusted entities so that they could concentrate on the growth of their businesses.
To highlight the spirit of AEO Program, Chairman FBR and Member Customs (Policy), convened a meeting in FBR Headquarters of all government departments and border agencies who were taken on board on the said Program that will substantially reduce the cost of doing business for the trade and industry.
Shabbar Zaidi, Chairman FBR informed the participants that AEO Program was a great step towards traders facilitation and ease of doing business as “red tapism” of government departments will be replaced with “red carpet” for the trustworthy business entities, and will provide enabling environment for the business community to achieve their maximum potential.
Muhammad Javed Ghani, Member Customs (Policy) requested the participants from all government departments to come forward for feedback to chalk out an attractive AEO Program that could meet maximum aspirations of the trade and industry.
The representatives from government departments i.e., Ministry of Foreign Affairs, Anti- Narcotics Force (ANF), Engineering Development Board (EDB), Ministry of Industries, Home Department Sind & KP, Pakistan Nuclear Regulatory Authority, Pakistan Quality Standards & Quality Certification Authority (PSQCA), Climate Change and PEMRA appreciated the AEO initiative and agreed that it was the first initiative of its kind which aims at recognition of trusted business partners at Federal Government level and entails benefits from all government departments.
Such unique initiative, the participants added, has great potential to boost businesses which are the backbone of national economy.
Chairman FBR briefed the participants that initially, AEO Program will be implemented on export stage that will not only boost national exports, but will also play vital role in jobs creation.
Subsequently, ambit of AEO Program will be extended to other sectors of the economy for maximum facilitation and priority treatment by all government departments.
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Persons on ATL exempted from tax on cash withdrawal
ISLAMABAD: There is no withholding tax on cash withdrawal from banking system by a person, whose name is appeared on Active Taxpayers List (ATL), officials in Federal Board of Revenue (FBR) said on Friday.
Under Section 231A of Income Tax Ordinance, 2001 the withholding tax rate is 0.6 percent for a person making cash withdrawal above Rs50,000 from banking system.
However, this tax rate is only applicable on a person whose name is not appeared on ATL.
For appearing on the ATL a person is required to file his annual income tax returns by due date prescribed by the FBR. In other cases the person can file his return after due date after payment of penalty to ensure his name on the ATL.
The officials said that through Finance Supplementary (Second Amendment) Act, 2019 the government abolished 0.3 percent withholding tax rate on persons who were compliant in return filing.
The Section 231A related to cash withdrawal from a bank said that every banking company shall deduct tax at the rate specified in Division VI of Part IV of the First Schedule, if the payment for cash withdrawal, or the sum total of the payments for cash withdrawal in a day, exceeds fifty thousand rupees.
Explanation: For removal of doubt, it is clarified that the said fifty thousand rupees shall be aggregate withdrawals from all the bank accounts in a single day.
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US experts train Pakistan Customs officers
KARACHI: US law enforcement experts have trained probationary officers of Pakistan Customs on enforcement topics such as contraband smuggling, human trafficking, investigative methods, and evidence collection.
In support of the United States’ ongoing commitment to strengthening Pakistan’s law enforcement organizations, Acting Consul General Jack Hillmeyer today joined Customs Chief Collector (Enforcement-South) Dr. Wasif Ali Memon for the closing ceremony of a U.S.-sponsored training for new probationary Customs officers.
The two-week program brought U.S. law enforcement experts to Karachi Customs House to train on customs enforcement topics such as contraband smuggling, human trafficking, investigative methods, and evidence collection.
Speaking to the 32 probationary officers—including 12 women officers—Acting Consul General Hillmeyer said Customs officers are “Pakistan’s front line in preventing smuggling of narcotics and other illicit goods through your land borders, airports, sea ports, and coastline…We are proud to support Customs with training and equipment to assist in your mission to enforce Pakistan’s customs laws.”
This training was made possible through a partnership between U.S. Department of State’s Bureau of International Narcotics and Law Enforcement (INL) and the U.S. Department of Homeland Security (DHS).
INL has provided over $1,531,000 (Rs238.83 million) in support to Pakistan Customs since 2001 through the provision of training and the donation of vehicles and other equipment to support Customs’ efforts to protect Pakistan’s borders and prevent illicit smuggling.
The United States Department of State’s Bureau of International Narcotics and Law Enforcement Affairs works in more than 90 countries to help countries combat crime and corruption, counter drug-related offences, improve police institutions, and promote laws and court systems that are fair and accountable.
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New policy to eliminate tariff rate gap between commercial, industrial importers
ISLAMABAD: The gap of duty and tax rates between commercial importers and industrial importers will be eliminated under newly proposed tariff policy.
The National Tariff Policy 2019-2024 has proposed following measures for enforcement:
(i) These policy recommendations will be implemented in a period of five years starting from the Budget 2020-21;
(ii) The tariff slabs will be simplified based on the principle of cascading;
(iii) The tariffs on raw materials, intermediate and capital goods will be gradually reduced;
(iv) The additional customs duty and regulatory duties will be gradually reduced;
(v) The difference in the rates of tariff for the commercial importers and the industrial users of raw materials, intermediate and capital goods will be eliminated to reduce misuse of such differentials and to provide access to such essential materials for SMEs.
(vi) The nascent industry will be provided time-bound protection, which will cover the payback period of financing and investment. The protection will be phased out gradually to make the protection regime predictable and facilitate the investment decisions. Such protection levels will be provided through Investment Policy.
(vii) In order to implement these policy recommendations, the following arrangement will be instituted:
a. A Tariff Policy Board (TPB) chaired by the Commerce Minister/Advisor, with Minister for Industries & Production, Secretary Finance, Secretary Revenue, Chairman FBR, Secretary Commerce, Secretary Board of Investment, and Chairman NTC as its members shall be created. Secretary Commerce shall be the Member/Secretary of the Board. The TPB shall be responsible for formulation, amendment and implementation of the National Tariff Policy.
b. A Tariff Policy Centre shall be created in the Ministry of Commerce, which will serve as the Secretariat of the TPB.
c. All proposals for levy, amendment or removal of tariffs including regulatory duties and customs duties shall be examined at the Tariff Policy Centre and after approval of the Tariff Policy Board shall be submitted by the Commerce Division to the Cabinet or Parliament, as the case may be, for approval.
(viii) Any policy impacting tariffs or having tariff-like impact shall be formulated through the process mentioned at (vii) above.
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IR officers empowered to sell defaulters’ properties without attachment
KARACHI: Officers of Inland Revenue (IR) have been empowered to sell moveable or immovable properties of sales tax defaulters for recovery of arrears.
Section 48 of Sales Tax Act, 1990, which was updated up to June 30, 2019 by the Federal Board of Revenue (FBR) explained the powers of IR officers for recovery of arrears of tax.
Section 48: Recovery of arrears of tax
Where any amount of tax is due from any person, the officer of Inland Revenue may:-
(a) deduct the amount from any money owing to person from whom such amount is recoverable and which may be at the disposal or in the control of such officer or any officer of Income Tax, Customs or Central Excise Department;
(b) require by a notice in writing any person who holds or may subsequently hold any money for or on account of the person from whom tax may be recoverable to pay to such officer the amount specified in the notice;
(a) stop removal of any goods from the business premises of such person till such time the amount of tax is paid or recovered in full;
(ca) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts;
(b) seal the business premises till such time the amount of tax is paid or- recovered in full;
(c) attach and sell or sell without attachment any movable or immovable property of the registered person from whom tax is due; and
(f) recover such amount by attachment and sale of any moveable or- immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument:
Provided that the Commissioner Inland Revenue or any officer of Inland Revenue shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that ten per cent of the amount of tax due has been paid by the taxpayer.
(1A) If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by any person and which cannot be recovered in the manner prescribed above, the Board or any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the Board.
(2) For the purpose of recovery of tax, penalty or any other demand raised under this Act, the officer of Inland Revenue shall have the same powers which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree.