Karachi, November 26, 2023 – The Commissioner Inland Revenue has been bestowed with suo moto powers to call for records during the tax year 2024.
This authority has been conferred upon the Commissioner under Section 45A of the Sales Tax Act, 1990, as per the updated version issued by the Federal Board of Revenue (FBR) for the upcoming fiscal year.
Section 45A of the Sales Tax Act, 1990 outlines the powers granted to the Board and the Commissioner to scrutinize records. According to the provision, the Board, on its own motion, may call for and examine the record of any departmental proceedings under the Act to ensure the legality and propriety of decisions or orders passed by an Officer of Inland Revenue.
The FBR is authorized to pass any order it deems fit, subject to the condition that no order imposing or enhancing any penalty or fine beyond the originally levied amount can be passed without providing the affected party with an opportunity to show cause and be heard.
Additionally, this power cannot be exercised if an appeal under Section 45B or Section 46 is pending, and no order can be made under this section after the expiration of five years from the date of the original decision or order of the subordinate officer.
The newly granted powers to the Commissioner Inland Revenue allow them to take suo moto action and independently call for and examine the record of any proceeding under the Sales Tax Act or its rules. This is aimed at ensuring the legality and propriety of decisions or orders passed by an officer of Inland Revenue subordinate to the Commissioner. The Commissioner has the discretion to pass orders deemed fit in the given circumstances.
The move to empower the Commissioner with suo moto authority is seen as a step towards enhancing transparency and accountability in tax-related proceedings. It provides the Commissioner with the flexibility to intervene in cases where there may be concerns about the legality or propriety of decisions made by subordinate officers.
This development comes as part of ongoing efforts by the Federal Board of Revenue to streamline and strengthen the tax administration system in the country. By updating the Sales Tax Act, 1990, and extending the suo moto powers to the Commissioner Inland Revenue, the authorities aim to create a more robust framework for tax compliance and enforcement.
Taxpayers and stakeholders in the business community are expected to closely monitor the implementation of these powers during the upcoming tax year. The move is likely to impact the overall tax landscape, with a potential increase in scrutiny and accountability for tax-related matters. The FBR’s emphasis on fair and transparent tax administration underscores its commitment to fostering a conducive environment for economic growth while ensuring compliance with tax regulations.
