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The Federal Board of Revenue (FBR) has issued taxpayers’ charter to define rights of the taxpayers and their obligation toward their liability to pay tax.

According to the FBR, the taxpayers’ charter defines rights and obligations of taxpayers, which will help eliminate the traditional perception and create a new tax culture of mutual trust, confidence and friendly working relationship between the taxpayers and the taxmen.

It defines a taxpayer as: “Any person who pays or is obliged to collect, deduct or pay any of the taxes administered by the FBR.”

The primary responsibility of the tax office is to collect due tax under the law within reasonable time ensuring least inconvenience to the taxpayer. For this purpose, Tax Facilitation Centers have been established in all Large Taxpayers Units and Regional Tax Offices, wherein one window operation facility is provided to the taxpayers for swift resolution of their tax-related issues, the FBR added.

These offices are manned with professional trained outfits for the purpose of facilitation & guidance of the taxpayers.

READ MORE: Tax officials may face criminal proceedings under ST Act

The FBR defines TAXPAYERS’ RIGHTS as:

Be Fair, reasonable and courteous

We treat you fairly and equitably. This includes:-

Paying respect and extending possible help and assistance.

Handling of your tax professionally and impartially;

Ensuring uniform interpretation and application of law in letter and spirit;

Requiring you to pay what is due under the law.

Treat you as being honest

We treat you and your representative as honest & fair in tax affairs unless proved otherwise.

Be accountable for what we do

We are obliged to act and behave in a professional manner and within the four walls of legal framework.

Facilitate and educate you

We provide information and extend all cooperation to help you to understand and meet your tax obligations.

Keep the information confidential

We maintain confidentiality of your tax affairs and details, documents, or declarations given during the course of any tax proceedings.

READ MORE: FBR identifies 482 retailers for POS integration

Provide access to information

It includes:

Right to have access to the information or documents about your tax affairs only.

Right to have access to explanatory circulars and public rulings given by the Federal Board of Revenue.

Allow opportunity of being heard

It includes:

Allowing reasonable opportunity of being heard before concluding your tax affairs;

Correct appreciation of facts and circumstances relevant to your case; and

Allowing sufficient/reasonable compliance time to respond to queries concerning your tax affairs.

Accept your right of representation

We accept your right of seeking professional advice concerning your tax affairs. This includes representation of the authorized representatives.

Accept your right of appeal, review and alternate dispute resolution

We accept your right to object:

On disagreements over facts, figures or interpretation of law; or

For any mistake, error or mal- administration that occurred during the conduct of proceeding of your tax matters.

READ MORE: Criminal proceedings against officials of RTO-II Karachi in fake sales tax refunds ordered

Acknowledge and respond to your Communications

This means to:

Acknowledge receipt of your communications;

Respond swiftly and accurately to your queries and requests for assistance; and

Redress your tax issues professionally.

Minimize your compliance cost

This is ensured by:

Good governess with a view to facilitate, educate and help the compliant taxpayers in resolving tax affairs;

Avoiding requisition of un-necessary information, details, documents both at the time of filing of tax forms return and during the proceedings of tax affairs;

Levying the taxes strictly in accordance with law;

Simplifying the tax laws and processes and introducing the concept of self-assessment in its true spirit;

Conducting meetings with you/ your representative at agreed time;

Finalizing proceedings in the minimum possible time;

Introducing taxpayer friendly, simple and easy to fill tax forms; and

Providing facilitation and tax education tools (literature, brochures, leaflets, software, website, workshops, seminars, help line etc).

Redress your grievances

It includes:

Processing of your complaints; and

Resolving your tax-related issues/ problems.

Issue the due refund of taxes within a reasonable time

This includes:

Keeping handy all record of your tax paid and balance payable/ refundable;

Processing your refund claims and issue due refunds within the prescribed time limit;

Payment of compensation for delayed refunds; if any.

Taxpayers Obligations

FBR expects from taxpayer (you) to voluntarily;

Register yourself

Comply with tax laws

File correct, complete and candid returns and statements prescribed time;

Pay due taxes;

Maintain accounts, documents and records of your transactions;

Be truthful and honest in your dealings with tax authorities;

Provide complete and information and record, if required under the law.

READ MORE: Major changes in sales tax regime on the cards

The government is set to introduce a finance supplementary bill which may bring major changes in sales tax regime, sources said on Wednesday.

The sources said that in the Sales Tax Act, 1990, zero-rating under the Fifth Schedule is proposed to be streamlined and certain entries are to be withdrawn.

Exemption regime under Sixth Schedule is proposed to be curtailed including pharmaceutical sector and restricted to import and local supply of essential commodities only.

Reduced rates of sales tax under Eight Schedule on certain items are proposed to be streamlined in order to achieve equity in the tax system.

Likewise, sales tax on import of high-end mobile phones in CBU condition under Ninth Schedule is proposed to be rationalized. The scope of Tier-1 retailers is also proposed to be rationalized.

The government is also planning to bring changes in Customs Act, 1969.

Under the Customs Act, 1969 the power of Collector to determine the value of imported or exported goods is proposed to be withdrawn which shall be exercised by Director Valuation that has been the case prior to Finance Act, 2021.

Similarly, the appeal against the decision of DG Valuation shall hereinafter be filed before judicial for a instead of Member Customs (Policy) in consonance with the principle of separation of judicial and executive functions. Moreover, in the interest of revenue, corporate guarantee is proposed to be taken out as was the case before September 15, 2021.

Minimal amendments in the Income Tax Ordinance, 2001 are aimed at promoting digital economy, documentation and facilitation measures. Additionally, advance tax on foreign produced drama serials is proposed to be introduced and slightly enhanced on cellular services.

Disclosure of information in respect of high-level public officials is proposed in line with the requirements of the development partners, rule of law and integrity. Furthermore, Special Purpose Vehicle (SPV) under the REIT regulations, 2015 is proposed to be extended.

During the tenure of the present Government far-reaching structural and administrative reforms have been initiated to achieve economic and financial stability through inclusive reforms and sustainable economic growth.

The Federal Board of Revenue (FBR) is committed to achieve tax reforms with the assistance of development partners with the ultimate objective to be able to generate sufficient revenue for the State.

The underlying purpose of reforms is also to rebuild the tax system on ideal principles of taxation and without any distortions. Amendments in tax laws, as outlined below, are warranted in order to achieve efficiency and equity in the tax systems through removal of aberrations, broaden the tax base, and document the economy.

Tax officials may face criminal proceedings under ST Act