Karachi, December 5, 2023 – The Federal Board of Revenue (FBR) has taken a significant step towards enhancing its capabilities by finalizing plans to gain real-time access to information and databases of both public and private institutions.
This move aims to streamline data analysis and improve the monitoring of economic transactions within the country.
In a recent development, the FBR issued SRO 1771(I)/2023, notifying draft rules for real-time access to information and databases. These rules introduce amendments to the Income Tax Rules, 2002, specifically under sections 39G to 39L.
According to the amended rules, every integrated organization is required to integrate with the Board’s Real-Time Accessed Data Analysis Repository (RADAR) by no later than January 15, 2024. This integration aims to provide real-time access to information and databases related to economic transactions conducted by individuals or reported to the integrated organization.
The rules specify the mode, manner, and form for integration with RADAR, requiring organizations to establish and maintain an IT platform. Until real-time access is available, organizations must provide information periodically as specified by the Board.
Integrated organizations are obligated to furnish true, correct, authenticated, and complete information to the RADAR. The information collected through this process is deemed to be collected by the Board for the purposes of the laws it administers.
The FBR will conduct periodic inspections of integrated organizations to ensure compliance with the new rules. This includes checking the accuracy of recorded information, adherence to IT platform guidelines, and verification of security protocols.
Consequences for non-compliance or contravention are outlined in the rules, with penalties and/or prosecution applicable to the principal accounting officer or principal officer of the organization. If the default is proven to be committed with the consent or neglect of any officer, they will also be held liable.
The rules also list numerous agencies, authorities, institutions, and organizations, including both federal and provincial government departments, financial institutions, and private entities, that are required to integrate with the Board’s RADAR. The list may be amended by the Board through official notifications.
This move by the FBR is seen as a significant leap towards a more transparent and efficient tax system, enabling real-time monitoring of economic activities and strengthening the country’s revenue collection efforts.
