In a strategic move to enhance the enforcement and intelligence capabilities within the tax framework, the Federal Board of Revenue (FBR) has introduced Section 30A in the Sales Tax Act, 1990.
This new section empowers the Directorate General (Intelligence and Investigation) Inland Revenue, granting intelligence officers the authority to exercise sales tax laws effectively.
The FBR, through its updated Sales Tax Act, 1990, incorporating amendments brought about by the Finance Act, 2021, has introduced Section 30A to formalize the structure and functions of the Directorate General (Intelligence and Investigation) Inland Revenue. This development signifies a proactive approach by the FBR to strengthen intelligence and investigation capabilities, ensuring a more robust implementation of sales tax laws.
The text of Section 30A of the Sales Tax Act, 1990, reads as follows:
30A. Directorate General (Intelligence and Investigation), Inland Revenue.– (1) The Directorate General (Intelligence and Investigation) Inland Revenue shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.
(2) The Board may, by notification in the official Gazette,–
(a) specify the functions and jurisdiction of the Directorate General and its officers; and
(b) confer the powers of authorities specified in section 30 upon the Directorate General and its officers.
This new section establishes the Directorate General (Intelligence and Investigation) Inland Revenue as a specialized unit within the FBR. The Directorate will be led by a Director General and will include Directors, Additional Directors, Deputy Directors, Assistant Directors, and other officers as appointed by the Board through official notifications.
Key points regarding Section 30A and the empowerment of intelligence officers include:
1. Formation of Directorate General: The Directorate General (Intelligence and Investigation) Inland Revenue is established to focus on intelligence and investigation aspects within the tax domain.
2. Appointment of Officers: The Board has the authority to appoint officers at various levels within the Directorate General, providing flexibility in staffing to address specific intelligence and investigation needs.
3. Functional Specifications: The Board has the discretion to specify the functions and jurisdiction of the Directorate General and its officers through official notifications. This allows for a clear delineation of responsibilities and areas of focus.
4. Conferment of Powers: Section 30A enables the Board to confer the powers of authorities specified in Section 30 of the Sales Tax Act, 1990, upon the Directorate General and its officers. This includes empowering intelligence officers to exercise sales tax laws effectively.
This strategic move by the FBR aligns with international best practices in tax administration, where specialized units dedicated to intelligence and investigation play a crucial role in ensuring compliance and combating tax evasion. The formalization of the Directorate General (Intelligence and Investigation) Inland Revenue under Section 30A reflects the FBR’s commitment to leveraging intelligence-driven approaches for more effective tax enforcement.
The FBR encourages stakeholders, including taxpayers and the business community, to stay informed about these developments and to cooperate with intelligence officers as they carry out their functions within the purview of the law. The empowerment of intelligence officers is expected to contribute to a more vigilant and proactive approach in enforcing sales tax laws, ultimately enhancing the overall integrity of the tax system.