FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.
According to a statement issued on Wednesday, the FBR successfully developed and rolled out a new module in the WeBOC system for Online Export Facilitation Scheme (EFS) Authorization Application.
This facility can be availed by the exporters after getting registered in the WeBOC system. In this regard, a new feature for this purpose has been added in the WeBOC menu “Export Facilitation Scheme (EFS) / Export Oriented Unit (EOU) / Manufacturing Bond (MB)”.
The license application, which is available in the WeBOC system, is to be filled online by the respective traders/exporters.
The online EFS application would be submitted to the relevant Customs formation where after initial scrutiny, it would be marked to the Regulatory Authority who will further execute the approval process.
In both the cases where license is approved either provisionally or finally it will be forwarded to IOCO or EDB for the issuance of analysis certificate and message will be sent to the trader/exporter.
An additional feature has also been introduced in the WeBOC system whereby the traders can apply online for the license of Common Export House.
The Common Export House will provide facilities of purchasing imported intermediary goods/raw material to SMEs as well as direct and indirect exporters.
The stakeholders that include SMEs, Exporters, Customs Agents and Ministry of Commerce immensely lauded the initiative as a tool that will provide the much needed lift to Pakistan’s industry and exports, in turn creating employment opportunities and earning foreign exchange.
By launching the EFS module, Pakistan has achieved an important milestone envisaged in the Trade Facilitation Agreement, 2017.
This initiative will remove the bottlenecks faced by Small and Medium Enterprises in exporting their goods thus playing an effective role in improving the country’s rating on World Bank’s Ease of Doing Business and Trading Across the Borders indices.
The vacant posts in BS 01 to 15 in the field formations of Inland Revenue have been advertised in the national press on August 29, 2021.
The candidates have been advised to submit their applications directly to the concerned IR field offices by September 20, 2021.
The recruitment process has to be finalized by the field formations by December 15, 2021, as per instructions of the Establishment Division.
In order to ensure transparency and merit-based selection/recruitment, the following guidelines have been prepared in the light of relevant rules and latest instructions of the Federal Government, to have uniformity in the recruitment process, which are for the guidance of the field formations.
These guidelines are of supplemental nature, do not over-ride the relevant rules/regulations and instructions of the Government on the subject:
The advertisement for recruitment shall be affixed on the Notice Board of each field office.
The recruitment process must be transparent, merit-based, and must be strictly completed in accordance with the relevant rules/procedures/instructions issued from time to time by the Government of Pakistan.
The concerned field formations will conduct requisite tests for the posts where warranted under the service rules. No testing agency can be engaged for the recruitment process in the right of latest instruction of the Federal Government conveyed vide Establishment Division 0.M No. 53/1/2008-SP dated 06.05.2020.
It may be noted that the Federal Government has withdrawn its O.M. dated 29.07.2019 regarding conducting balloting for the post in BPS 1-5 vide SRO 198(1)/2020 dated 11.03.2020, so there will be no balloting for recruitment against any posts in any grade.
The heads of field formation shall designate an officer of their formation to act as the focal person to assist the relevant Departmental Selection Committees (DSCs) in the selection/recruitment process against posts falling under their jurisdiction (Copy of order shall be endorsed to the Board).
The focal person shall be the secretariat and custodian of the entire record of recruitment.
The focal person shall communicate in writing to the DSCs the exact number of vacancies, so that selection could be made only according to the number of vacancies available in the budget and advertised.
However, the number of vacancies must not increase as advertised, without the approval of the Board and Establishment Division. The DSC shall judge the applicants on the basis of guidelines as laid down by the Establishment Division’s 0.M.No.F.53/1/2008-SP dated 3rd March 2015.
The DSC shall consider the employees already working on a contract/contingent basis / daily wages/project staff in the light of Establishment Division’s 0.M.No.F.53/1/2008-SP dated 11th May 2017.
Quota reserved for women, minorities, and disabled persons must be observed, as per the Government’s instructions/policy.
Vacancies for BS-01 to BS- 05 shall be filled on a local basis in terms of Rule, 16 whereas vacancies for BS 06 to 15 shall be filled by appointment of persons domiciled in the province or region concerned strictly under Rule 15 of the Civil Servants (Appointment, Promotion & Transfer) Rules, 1973 read with Establishment Division 0.M No. 4/3/2019-R-II dated 21.08.2019.
Those contract employees (65-01 to 15) who were appointed under the Prime Minister’s Assistance Package for the families of Government employees, who died in service and are still working in the field formations, may also be considered by the DSCs for regular appointment through the selection process, subject to the condition that they have duly applied and fulfilled the criteria of recruitment.
The Departmental Selection Committee shall oversee the recruitment process including skill test / physical test. DSCs may engage the local Traffic office for the post of Dispatch Rider to conduct the Driving test.
The process of interview (where required) shall be initiated by the DSCs immediately on receipt of the list of short-listed candidates. The top five (05) candidates (in order of merit) against each vacancy would be shortlisted and called for an interview. The call letters for the interview may be issued at least 15 days in advance of the date of the interview and must be issued through the Registered post to ensure timely delivery to candidates. The call letter shall also be emailed to candidates at the address provided on the application form and the delivery report shall be made part of the recruitment record.
The DSCs shall prepare proper minutes of their recommendations for selection, duly signed by all members, including the Chairman of the respective Committee. The Committees shall recommend and select suitable candidates, in order of merit, as Principal Candidate(s) according to the number of available vacancies and also recommend alternate candidates up to 50 percent of the vacant posts to be kept on the separate waiting list for a period of six months, so that in case of non-joining of any principal candidate, the alternate candidate could be offered the post.
It may be noted that the waiting list will not be valid for an indefinite period; rather it will be valid only for the current selection process and shall be considered invalid when all the vacancies currently advertised are filled.
The concerned field formation will prepare the lists/particulars of the qualified candidates with scores awarded for the skill test and submit the lists to the concerned departmental Selection Committees (DSCs) specifically constituted in each field formation for the purpose of recruitment.
6 Weeks Basic IT Training for the post of Assistant (BS-15) and 3 weeks training for the post of UDC (BS-11)/LDC (65-09) respectively, from NITB, is mandatory, therefore this term & condition must be mentioned in the offer letter of the selected candidates.
In case applications received within due date, due to misunderstanding of the candidates regarding jurisdiction of an office, not relating to the concerned field office, the same may be sent to concerned field formations immediately and its proper acknowledgment receipt must be obtained and placed on record under intimation to the candidates accordingly.
After compilation of recommendations for selection and signing of minutes of the meetings, the Chairman of the DSCs shall forward the signed minutes to the respective Appointing Authority for approval. The result shall be displayed on the Notice Board of the respective office and shall be submitted to the Board for placement on FBR’s website. The selected candidates shall be issued an offer of appointment by the concerned office in the prescribed format. The appointment letters must be issued through the Registered post to ensure timely delivery.
The number of existing vacant posts in the respective field formation must be re-confirmed from Budget Book prior to issuance of offer of appointment.
The respective Appointing authorities through their designated focal persons will be personally responsible for any lapse i.e recruitment made in excess of the actual number of vacant posts in the respective formation or any procedural lapse/irregularity and record will be saved/preserved for Audit and Accountability by the Focal Person.
Domiciles of candidates shall be verified in the light of the Establishment Division’s letter No. 5/7/2009/PPRAC-Vol.X11 dated 31.03.2021 and No. 5/1/2021-(R) dated 06.04.2021.
A list of finally selected candidates against the vacant posts may invariably be forwarded to the Board for information and record by each office upon completion of the recruitment process.
The maximum age limit for the post of Dispatch Rider (BS-04) as per the advertisement available on FBR’s website is (30+5=35) years.
No candidate shall be appointed without verification of character/antecedent and Medical Fitness Certificate by the Authorized Medical Board.
Section 117 of the Income Tax Ordinance, 2001 stated that any person discontinuing a business shall give the commissioner a notice in writing to that effect within 15 days of the discontinuance.
117. Notice of discontinued business.— (1) Any person discontinuing a business shall give the Commissioner a notice in writing to that effect within fifteen days of the discontinuance.
(2) The person discontinuing a business shall, under the provisions of this Ordinance or on being required by the Commissioner by notice, in writing, furnish a return of income for the period commencing on the first day of the tax year in which the discontinuance occurred and ending on the date of discontinuance and this period shall be treated as a separate tax year for the purposes of this Ordinance.
(3) Where no notice has been given under sub-section (1) but the Commissioner has reasonable grounds to believe that a business has discontinued or is likely to discontinue, the Commissioner may serve a notice on the person who has discontinued the business or is likely to discontinue the business to furnish to the Commissioner within the time specified in the notice a return of income for the period specified in the notice.
(4) A return furnished under this section shall be treated for all purposes of this Ordinance as a return of income, including the application of Section 120.
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
116A. Foreign income and assets statement.– (1) Every resident taxpayer being an individual having foreign income of not less than ten thousand United States dollars or having foreign assets with a value of not less than one hundred thousand United States dollars shall furnish a statement, hereinafter referred to as the foreign income and assets statement, in the prescribed form and verified in the prescribed manner giving particulars of—
(a) the person’s total foreign assets and liabilities as on the last day of the tax year;
(b) any foreign assets transferred by the person to any other person during the tax year and the consideration for the said transfer; and
(c) complete particulars of foreign income, the expenditure derived during the tax year and the expenditure wholly and necessarily for the purposes of deriving the said income.
(2) The Commissioner may by a notice in writing require any person being an individual who, in the opinion of the Commissioner on the basis of reasons to be recorded in writing, was required to furnish a foreign income and assets statement under sub-section (1) but who has failed to do so to furnish the foreign income and assets statement on the date specified in the notice.
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
The Federal Board of Revenue (FBR) has clarified the provisions of Section 115 of the Income Tax Ordinance, 2001, shedding light on specific categories of individuals who are exempted from the requirement of filing a return of income under the tax law.
The transfers have been made with immediate effect and until further orders.
01. Ms. Suraiya Ahmed Butt (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Training & Research (Customs), Karachi from the post of Chief Collector of Customs, Appraisement (South), Karachi.
02. Dr. Fareed Iqbal Qureshi (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Customs Valuation, Karachi. The officer in addition to his own duties shall hold additional charge of the post of Director General, Directorate General of Risk Management, Karachi. The officer has been transferred from the post of Director General, Directorate General of Training & Research (Customs), Karachi.
03. Ahmad Reza Khan (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector of Customs Khyber Pakhtunkhwa, Peshawar from the post of Director General, Directorate General of Transit Trade, Karachi.
04. Wajid Ali (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collctor of Customs, Appraisement (South), Karachi. The officer in addition to his own duties shall hold additional charge of the post of Director General, Directorate General of Reforms and Automation (Customs), Islamabad (Stationed at Karachi). The officer has been transferred from the post of Director General, Directorate General of Reforms & Automation (Customs), Islamabad.
05. Ms. Shahnaz Maqbool (Pakistan Customs Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad from the post of Director General, Directorate General of Customs Valuation, Karachi.
06. Imtiaz Ahmed Shaikh (Pakistan Customs Service/BS-20) has been transferred and posted as Director General, (OPS) Directorate General of Transit Trade, Karachi from the post of Member, (OPS) Federal Board of Revenue (Hq), Islamabad (Stationed at Karachi).
The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.
Section 114A of Income Tax Ordinance, 2001 mandates the requirement that every taxpayer declare to the Commissioner the bank account used for business transactions.
“In order to win the trust of the taxpayers and spare the public resources for more productive use elsewhere, all departmental appeals filed on the strict sensu interpretation of the law, be withdrawn immediately, and no further appeals be filed if one all fours of this clarification,” according to the circular.
Further, all circulars and instructions issued on the matter previously issued stand rescinded, the FBR added.
The FBR said a controversy has loomed for a quite some time as innovations in banking, money transfer mechanism, and development of newer products for cross-border transactions have outflanked the letter of the law as now Money Services Bus (MSBs), Exchange Companies (ECs), and Money Transfer Operators (MTOs) perform almost identical to those of scheduled banks.
In some situations, IRS Field Formations have refused concessions vis-à-vis foreign remittances remitted via ECs, that is, Money Gram, Western Union and Ria France etc. relying on Appellate Tribunal Inland Revenue’s judgment reported as ITA.No.794/LB of 2021.
It has been held that four conditions are mandatory to claim the benefit of foreign remittances under Income Tax Ordinance, 2001. The exemption is available subject to fulfillment of the four conditions, namely: the remitted amount is in foreign exchange; the amount is remitted into Pakistan through normal banking channels; the amount is encashed by a scheduled bank; and a certificate of encashment is issued by the bank concerned.
However, the State Bank of Pakistan (SBP) while responding to Federal Tax Ombudsman (FTO)’s memorandum through letter No.EPD/8302/EPP16(37)-Misc-2019, dated April 08, 2019, has categorically taken the position that foreign exchange remitted into Pakistan etc. does constitute ‘foreign exchange remitted through normal banking channels’ for all legal purpose.
The FBR said that SBP’s stance legitimizing remittances via MSBs, ECs and MTOs, and equating them with scheduled bank as laid down in Section 111(4) of Income Tax Ordinance, 2001, was challenged through a precise reference bearing C.No.1(1)TP/2017(A), dated March 31, 2021, mainly on four grounds.
First, that all four conditions are to be concomitantly fulfilled and that, prima facie, “prefunded non-resident rupee account and the foreign current account of Overseas Money Service Bureau (MSB), Exchange Companies (ECs), Money Transfer Operators (MTOs) etc. locally maintained with the Pakistani banks, and the subsequent replenishment through SWIFT cannot substitute the strict conditions of Section 111(4) of the Income Tax Ordinance, 2001.
Second, as per Section 2(m) of the SBP Act, 1956, a scheduled bank means a bank for the time being included in the list of banks maintained under sub-section (1) of Section 37 of the SBP Act, 1956, and that MSBs, ECs and MTOs were not scheduled banks as per section 37(1) read with Section 111(4) of the Income Tax Ordinance, 2001.
Third, Honorable Supreme Court of Pakistan in case law titled as Army Welfare Sugar Mills Ltd. and other versus Federation of Pakistan reported and reported as 1992-SCMR-1652 has laid down a couple of fundamental principles of claiming exemption, namely that (a) the onus of proof is on the one who claims exemption, and (b) that “a provision relating to grant of tax exemption is to be construed strictly against the person asserting and in favor of the taxing officer.”
Fourth, it is for Supreme Court and High Courts to interpret law and not the regulators like SBP to do the same.
The FBR further stated that the SBP through Memorandum No. EPD-30-4-2021-97865, dated May 7, 2021, held their ground and have responded to FBR’s afore-cited observations by stating that “to claim exemption under aforementioned clause of Income Tax Ordinance, 2001, a taxpayer receiving home remittances” via MSB and ECs “strictly fulfills all the conditions set in Section 111(4)(a) of the Income Tax Ordinance, 2001.”
The SBP has also gone on to item-wise address the question of fulfillment or non-fulfillment of the four cardinal conditions laid down in the Income Tax Ordinance, 2001.
“The SBP having unequivocally responded to all four critical questions, that is, that foreign exchange ought to originate overseas, must reach and be surrendered to the SBP, and transaction should have a banking trail behind, have been answered affirmatively.”
Moreover, the SBP under the Foreign Exchange Regulations Act, 1947, is the institutions to attend to all matters pertaining to ‘dealings in foreign exchange and securities and the import and export of currency.”
Therefore, the SBP being the frontline regulator of all foreign exchange moving into or outside the country, is in best position to decide as to whether the necessary legal requirements have been met or not of a particular transaction to be able to avail the benefit cover under tax laws.
Foregoing in view, it is clarified, the FBR said, that all cases of claim of foreign remittances be disposed of by according lenient interpretation to the conditions stipulated in section 111(4) of the Income Tax Ordinance, 2001.
“Moreover, in order to win the trust of the taxpayers and spare the public resources for more productive use elsewhere all departmental appeals filed on the strict sensu interpretation of the law, be withdrawn immediately, and no further appeals be filed if on all fours of this clarification.”
