FBR to get information of all persons entering, leaving Pakistan for broadening of tax base

FBR to get information of all persons entering, leaving Pakistan for broadening of tax base

KARACHI: Federal Board of Revenue (FBR) will get access to information of all persons entering or leaving Pakistan from federal investigation agency and bureau of emigration for the purpose of broadening of tax base.

As per the newly proposed amendment to Income Tax Ordinance, 2001 a new section 47(B) has been introduced through Finance Bill, 2020 for real-time access to information and database.

As per the proposed amendment the Federal Investigation Agency (FIA) and Bureau of Emigration and Overseas Employment to provide details of international entry and exit of all persons and information pertaining to work permits, employment visas and immigration visas.

According to interpretation of EY Ford Rhodes Chartered Accountants, for broadening of the tax base and effective monitoring of tax evasion, the Finance Bill 2020 seeks to insert a new section dealing with the provision of real-time access of information and database of various organizations to the FBR.

National Database and Registration Authority (NADRA) will provide details pertaining to National Identity Card, Pakistan Origin Card, Overseas Identity Card, Alien Registration Card, and other particulars container in the citizen database.

Islamabad Capital Territory, Provincial and local land record and development authorities will provide Record-of-rights including digitized edition of record-of-rights, periodic record, record of mutations and report of acquisition of rights.

Further, Islamabad Capital Territory and Provincial Excise and Taxation Departments shall provide details regarding registration of vehicles, transfer of ownership and other associated record

All electricity suppliers and gas transmission and distribution companies shall provide particulars of a consumer, the units consumed and the amount of bill charged or paid, name and CNIC of the owner and user in cases where the connection is shared or used by a person other than the owner.

Any other agency, authority, institution or organization notified by the FBR shall provide any information and detail notified by the FBR.

The Finance Bill further proposes that all electricity suppliers and gas transmission and distribution companies shall make arrangements by 01 January 2021 for allowing the consumers to update the ratio of sharing of a connection and the particulars of users. It is also proposed that the FBR shall make arrangements for laying the infrastructure for real-time access to information and databases described above and aligning it with its own database. The information and record received under this section shall be used only for tax purposes and kept confidential.

Keeping in view the fact that the establishment of such real-time infrastructure by the FBR, as well as the concerned organizations, may take significant time and may be subject to various constraints, the Bill also proposes that until real-time access to information and database is made available, such information and data shall be provided periodically in any other form and manner as may be prescribed.