ISLAMABAD: The Federal Board of Revenue (FBR) has offered assistance to the provinces in broadening the tax base in agriculture sector. Under the Constitution of Pakistan, the provinces have mandate to collect tax on agriculture income.
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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.
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FBR invites job applications for 912 posts
ISLAMABAD: Federal Board of Revenue (FBR) has invited applications for 912 vacancies in Inland Revenue Service (IRS) for BS-1 to BS-15.
The FBR said that applications are invited from eligible candidates against following vacant posts in field formations of Inland Revenue, FBR from Pakistani Nationals on local basis in case of vacancies of (BS 1 to 5) and from candidates domiciled of the province or region concerned in case of vacancies of (BS 6 to 15).
The eligible candidates are advised to submit their application on the prescribed form available on link i.e. https://fbr.gov.pk/jobs-vacancy-announcements/142246/131361 upon FBR website www.fbr.gov.pk and field offices (duly filled in/complete in all respects) to the Admin officers of respective Tax Office.
Candidates applying for more than one post should submit separate application form in separate envelope, clearly marked against the post applied for and obtain separate receiving of the same.
The applications submitted and received in wrong office will be straight away rejected.
Vacancies for BS 01 to 05 shall be filled on local basis in terms of Rule, 16 whereas vacancies for BS 06 to 15 shall be filled by 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 O.M No. 4/3/2019-R-II dated 21.08.2019.
Please attach attested copies of CNIC and all relevant documents with application form. Candidates will, however, be required to bring original documents Educational and Experience Certificate (if any) and one set of attested copies of document at the time of interview.
The contract employees (BS-01 to 05) who were appointed under the Prime Minister Assistance Package for the families of Government employees who died in service may also apply for the above posts (if they intend to apply). They will only be considered, if they will formally apply against the specific post.
All appointments shall be made on merit, however 10% quota for women, 5 per cent quota for minorities (non-Muslims) and 2% quota for disabled persons will be reserved for all above posts as per government instructions. Disabled persons are required to submit a certificate as proof of disability duly issued by recognized social welfare Board/ office or other authorized Government organization, otherwise they will not be considered against disabled quota.
The FBR reserve the right not to fill any vacancy or to increase/decrease/vary the number of vacancies if the circumstances so warrant.
The candidates working in public sector departments/ organizations should send their applications through proper channel and the same must be received in respective office before the date of interview. Nevertheless, advance copies can be submitted by the closing date of application.
Minimum and Maximum age shall be calculated on the closing date for receipt of applications.
The selected candidates for the post of Assistant (BS-15) shall have to undertake 6 weeks whereas UDCs and LDCs shall have to undertake 3 weeks basic IT training course (including MS Office) conducted by NITB within one year of their appointment, otherwise their service will be terminated in light of Establishment Division’s Office Memorandum No.1/13/96-R-6 dated 10-08-2016.
Information provided in the Application Forms will be verified. In case of any false or forged information, FBR reserves the right to cancel candidature of any person at any stage (even after employment, if so revealed later) and will initiate legal action against the applicant under the relevant law.
The eligible candidates will be called for test (where required) and only short listed candidates will be called for interview. All the candidates will be provisionally allowed to appear in the test/ interview subject to detail scrutiny/verification of their eligibility during the recruitment process.
No TA/ DA will be admissible for the Test/ Interview.
Last date for submission of application is 20.09.2021. Applications received after the closing date will not be entertained.
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Requirement of filing income tax return by persons
Requirement of filing income tax return by persons in a tax year has been unveiled by the Federal Board of Revenue (FBR).
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Levy of alternative corporate tax under Section 113C
Section 113C of Income Tax Ordinance, 2001 explained the levy of alternative corporate tax payable by a company in respect of income.
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Application of minimum tax under Section 113
Section 113 of Income Tax Ordinance, 2001 defined the application of minimum tax on taxpayers where they declare loss during a tax year or other reasons specified in the ordinance.
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Tax liability in certain security transactions
The newly clarified Section 112 specifically addresses tax liability arising from the disposal or certain security transactions.
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Action against concealed, unexplained income or assets
Section 111 of Income Tax Ordinance, 2001 explained action against income or assets that is concealed or unexplained by persons.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 111 of the Income Tax Ordinance, 2001:
111. Unexplained income or assets. — (1) Where —
(a) any amount is credited in a person’s books of account;
(b) a person has made any investment or is the owner of any money or valuable article;
(c) a person has incurred any expenditure; or
(d) any person has concealed income or furnished inaccurate particulars of income including —
(i) the suppression of any production, sales or any amount chargeable to tax; or
(ii) the suppression of any item of receipt liable to tax in whole or in part,
and the person offers no explanation about the nature and source of the amount credited or the investment, money, valuable article, or funds from which the expenditure was made suppression of any production, sales, any amount chargeable to tax and of any item of receipt liable to tax or the explanation offered by the person is not, in the Commissioner’s opinion, satisfactory-
(a) the amount credited, value of the investment, money, value of the article, or amount of expenditure shall be included in the person’s income chargeable to tax under the head “Income from Other Sources” to the extent it is not adequately explained; and
(b) the suppressed amount of production, sales or any amount chargeable to tax or of any item of receipt liable to tax shall be included in the person’s income chargeable to tax under the head “Income from Business” to the extent it is not adequately explained”
Provided that where a taxpayer explains the nature and source of the amount credited or the investment made, money or valuable article owned or funds from which the expenditure was made, by way of agricultural income, such explanation shall be accepted to the extent of agricultural income worked back on the basis of agricultural income tax paid under the relevant provincial law.
(2) The amount referred to in sub-section (1) shall be included in the person’s income chargeable to tax:
(i) in the tax year to which such amount relates if the amount representing investment, money, valuable article or expenditure is situated or incurred in Pakistan or concealed income is Pakistan-source; and
(ii) in the tax year immediately preceding the tax year in which the investment, money, valuable article or expenditure is discovered by the Commissioner and is situated or incurred outside Pakistan or concealed income is foreign-source.
Explanation.—For the removal of doubt, it is clarified that where the investment, money, valuable article or expenditure is acquired or incurred outside Pakistan in a prior tax year and is liable to be included in the income of tax year 2018 and onwards on the basis of discovery made by the Commissioner during tax year 2019 and onwards and the person explains the acquisition of such asset or expenditure from sources relating to tax year in which such asset was acquired or expenditure was incurred, such explanation shall not be rejected on the basis that the source does not relate to the tax year in which the amount chargeable to tax is to be included.
(3) Where the declared cost of any investment or valuable article or the declared amount of expenditure of a person is less than reasonable cost of the investment or the valuable article, or the reasonable amount of the expenditure, the Commissioner may, having regard to all the circumstances, include the difference in the person’s income chargeable to tax under the head “Income from Other Sources” in the tax year to which the investment, valuable article or the expenditure relates.
(4) Sub-section (1) does not apply to any amount of foreign exchange remitted from outside Pakistan through normal banking channels not exceeding five million Rupees in a tax year that is en-cashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect.
(5) The Board may make rules under section for the purposes of this section.
Explanation.—For the removal of doubt, a separate notice under this section is not required to be issued if the explanation regarding nature and sources of amount credited or the investment of money, valuable article, or the funds from which expenditure was made has been confronted to the taxpayer through a notice under sub-section (9) of section 122 of this Ordinance.
(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.)
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Tax on salary income of earlier year
The Federal Board of Revenue (FBR) has unveiled Section 110 of the Income Tax Ordinance, 2001, providing a mechanism for the payment of tax on salary income of earlier years by private companies.
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Tax payable on income of controlled foreign company
The Federal Board of Revenue (FBR) has issued an updated version of the Income Tax Ordinance, 2001, which now includes amendments from the Finance Act, 2021. One of the notable updates is the detailed specification of Section 109A, which addresses the taxation of income from controlled foreign companies (CFCs) for resident taxpayers.
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Recharacterization of income for determining tax liability
Section 109 of Income Tax Ordinance, 2001 has stated that a commissioner may recharacterise a transaction for determining tax liability.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 109 of the Income Tax Ordinance, 2001:
109. Recharacterisation of income and deductions. — (1) For the purposes of determining liability to tax under this Ordinance, the Commissioner may –
(a) recharacterise a transaction or an element of a transaction that was entered into as part of a tax avoidance scheme;
(b) disregard a transaction that does not have substantial economic effect; or
(c) recharacterise a transaction where the form of the transaction does not reflect the substance.
1(d) from tax year 2018 and onwards, disregard an entity or a corporate structure that does not have an economic or commercial substance or was created as part of the tax avoidance scheme.
(2) In this section, “tax avoidance scheme” means any transaction where one of the main purposes of a person in entering into the transaction is the avoidance or reduction of any person’s liability to tax under this Ordinance.
(3) Reduction in a person’s liability to tax as referred to in sub-section (2) means a reduction, avoidance or deferral of tax or increase in a refund of tax and includes a reduction, avoidance or deferral of tax that would have been payable under this Ordinance, but are not payable due to a tax treaty for the avoidance of double taxation as referred to in section 107.