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.
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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 urged to allow time extension making audit notice compliance
KARACHI: Pakistan Tax Bar Association (PTBA) has urged the tax authorities to allow time extension to taxpayers for making compliance in audit notices of tax year 2014.
In a letter sent to Ms. Nausheen Javaid Amjad, Chairperson, Federal Board of Revenue (FBR) on Friday, the PTBA urged to grant an extension of time under Section 214A of the Income Tax Ordinance, 2001 to complete the amendment of assessment proceedings for the tax year 2014 in order to provide sufficient time to taxpayers for compliance of such notices issued by the department in the best possible interest of the taxpayers at large.
The apex tax bar said that it had been brought to the notice that the officers of Inland Revenue had initiated amendment of assessment proceedings by issuing various notices under Section 177/174/176/122 of the Ordinance, ibid in the last month of June 2020 to the taxpayers for the year 2014 as the said tax year is going to be time barred as on June 30, 2020 under Section 122(2) of the Income Tax Ordinance, 2001.
Furthermore, the said notice have been issued with a short margin of only 2-3 days for compliance (which is not possible) and the officers are also reluctant to allow sufficient time to the taxpayers and their respected authorized representatives to respond against the notices in order to finalize it till June 30, 2020 to achieve budgetary targets by the end of this month.
The tax bar said: “This, once again, put the credibility of the FBR officials in question as there were six years available to those officers to complete the assessment proceedings after filing of income tax returns for the tax year 2014 but the department has been slept over all this time and now suddenly awake just to show efficiency by issuing such vague notices in order to complete the proceedings before it gets time barred.”
The PTBA informed the FBR chairperson that it had been held in a number of judgments as well as many directions had been given from time to time by the board to the officials to provide sufficient time/opportunity to the taxpayers to defend their case and provide sufficient explanation before an adverse order is passed against them. “But this has not been adhered to in the prevailing situation as the officers of FBR are busy in achieving their budgetary targets as well as to show their efficiency at the end of the financial year.”
Hence, such notices issued by the department not only torment the taxpayers but also lacks confidence of the taxpayers / consultants upon the department, it added.
“Nevertheless, the current pandemic situation of COVID-19 prevailing all over the country where many of the businesses and areas are still in lockdown situation, the taxpayers are unable to reach their as well as FBR offices to respond such notices issued by the department in such a short compliance period.”
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Customs collectorates to observe extended working hours on June 29-30
KARACHI: Federal Board of Revenue (FBR) on Friday said that the collectorates of Customs will observe extended working hours on June 29 and 30, 2020 to facilitate trade and business in payment of duty and taxes.
The FBR said that all filed offices of customs will remain open and observe extended working hours till 10:00 PM on June 29, 2020 (Monday) and till 12:00 midnight on June 30, 2020 (Tuesday) for collection of duty and taxes.
The FBR directed chief collectors of Customs to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of the duty and taxes collected by these branches on June 30, 2020 to the respective branches of State Bank of Pakistan on the same date so as to account for the same towards collection for the month of June 2020.
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Cash withdrawal should be exempted from withholding tax; Senate recommends key changes in Finance Bill 2020
ISLAMABAD: The Senate of Pakistan has recommended the government to abolish withholding tax on cash transactions from banks. In its key tax recommendations for finalizing budget 2020/2021, the Senate recommended that the government should abolish all kinds of withholding tax chargeable on cash transactions from banks.
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CRTO Karachi initiates recovery of reward amount from 42 officials
KARACHI: The Chief Commissioner Inland Revenue of Corporate Regional Tax Office (CRTO)-Karachi started recovery of reward amount that was sanctioned to the officials beyond authorized approval.
In an official notices issued by Mushtaque Ali Wagan, Additional Commissioner (HQs) asked 42 officers and officials of the CRTO Karachi to deposit the sanctioned amount in government treasury through State Bank of Pakistan or National Bank of Pakistan within two days from the issuance of the letter i.e. June 24, 2020.
The recovery has been initiated after detection that the then Chief Commissioner-IR, CRTO Karachi sanctioned stipend, incentives, awards and allied to the following officers of the CRTO without consultation of the Federal Board of Revenue (FBR):
01. Imran Ali Sheikh, Additional Commissioner-IR, CRTO Karachi
02. M. Masood Ahmed Gorsi-IR, Additional Commissioner-IR, CRTO, Karachi.
03. Kashif Hafeez, Additional Commissioner-IR, CRTO, Karachi.
04. Naseer Ahmed, Additional Commissioner-IR, CRTO, Karachi.
05. Karim Bukhsh Bughio, Additional Commissioner-IR, CRTO, Karachi.
06. Ms. Maryam Habib, Additional Commissioner-IR, CRTO, Karachi.
07. Ms. Uzma Saqib, Additional Commissioner-IR (now CIR), CRTO, Karachi.
08. Mushtaque Ali, Additional Commissioner-IR, CRTO, Karachi.
09. Sardar Temur Khan Durrani, Additional Commissioner, IR, CRTO, Karachi.
10. Mamoon Moazam Khuhwar, Additional Commissioner-IR, CRTO, Karachi.
11. Muhammad Babar Chohan, Additional Commissioner-IR, CRTO, Karachi.
12. Tariq Hussain Maitlo, Deputy Commissioner-IR, CRTO, Karachi.
13. Tarique Aziz, Deputy Commissioner-IR (now ADC), CRTO, Karachi.
14. Gobind Kumar, Deputy Commissioner-IR, CRTO Karachi.
15. Mansoor Wisal, Deputy Commissioner-IR, CRTO Karachi.
16. Ms. Kalpana, Deputy Commissioner-IR, CRTO, Karachi.
17. Ms. Laila Malik Sher, Deputy Commissioner-IR, CRTO Karachi.
18. Aminullah Kakar, Deputy Commissioner-IR, CRTO Karachi.
19. Ms. Rashida Khalil, Deputy Commissioner-IR, CRTO Karachi.
20. Muhammad Haider, Assistant Commissioner-IR, CRTO Karachi.
21. Usama Amin, Assistant Commissioner-IR, CRTO Karachi.
22. Muhammad Naveed, Assistant Commissioner-IR, CRTO Karachi.
23. Sajid Khan, Assistant Commissioner-IR, CRTO Karachi.
24. Shahid Nawaz, Assistant Commissioner-IR, CRTO Karachi.
25. Baqar Ali, Assistant Commissioner-IR, CRTO Karachi.
26. Masroor Ahmed, Assistant Commissioner-IR, CRTO Karachi.
27. Darshan Lal, Assistant Commissioner-IR, CRTO Karachi.
28. Abbas Jan Muhammad, IRO, CRTO Karachi.
29. Zulfiqar Ali Khokhar, Assistant Director (Audit), CRTO Karachi.
30. Yousuf Bashir, IRO, CRTO Karachi.
31. Muhammad Arshad, IRO, CRTO Karachi.
32. Mukesh Kumar, IRO, CRTO Karachi.
33. Muhammad Shahid Rehan, Senior Auditor, CRTO Karachi.
34. Qadeer Ahmed, MIS Officer, CRTO Karachi.
35. Ahsan Ali Bhutto, APS, CRTO Karachi.
36. Syed Salman Shah, Inspector-IR, CRTO Karachi.
37. Muhammad Raza, Inspector-IR, CRTO Karachi.
38. Ms. Khalida Begum, APS, CRTO Karachi.
39. Ali Muhammad, Inspector-IR, CRTO Karachi.
40. Sajid Anwar, Inspector-IR, CRTO Karachi.
41. Muhammad Daniyal Pervez, Inspector-IR, CRTO Karachi.
42. Muhammad Amin, Inspector-IR, CRTO Karachi.
The Chief Commissioner of CRTO through a notice issued June 16, 2020 notified that the then chief commissioner sanctioned reward to following officers of CRTO Karachi exceeding value of six salaries:
01. M. Masood Ahmed Gorsi, Additional Commissioner, Rs2.57 million
02. Imran Ali Shaikh, Additional Commissioner, Rs930,120
03. Tarique Aziz, Deputy Commissioner, Rs2.83 million
04. Ms. Kalpana, Deputy Commissioner, Rs388,900
05. Mansoor Wisal, Deputy Commissioner, Rs527,000
06. Zulfiqar Ali Khokhar, Assistant Director (Audit), Rs521.730
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Banks to provide information of all recipients of profit on debt
In a decisive move to bolster transparency in financial transactions, the Federal Board of Revenue (FBR) is set to require all banks to provide detailed information on individuals receiving profit on debt, effective from July 1, 2020.
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Restoration of multiple years audit to burden taxpayers
KARACHI: Business community has criticized the government for eliminating condition of conducting audit once in three-year period.
Overseas Investors Chamber of Commerce and Industry (OICCI) highlighted anomalies in the Finance Bill 2020, sent to the Federal Board of Revenue (FBR) and said that omission of the condition would burden the taxpayers and would give sweeping powers to tax officials.
The Finance Act 2018 restricted the frequency of conducting audits to once in a three-year period.
This amendment of 2018 demonstrated the confidence of the Government on the records maintained by registered persons.
The Bill now seeks to omit the condition of conducting the audit once in a three-year period. If passed, this will unnecessarily burden taxpayers, while handing over sweeping powers to the assessing officers of Inland Revenue to conduct audits covering one or multiple tax years with no reprieve for the taxpayer available under the law, in absence of any prescribed limitation.
The consequence of this change will likely erode the taxpayer’s confidence in the revenue machinery and the probable unnecessary wastage of time and effort by the revenue authorities.
The OICCI said that during the FBR/OICCI Web link meeting on May 5th the FBR Member (IR-Operations) informed that new Audit Policy will be announced soon, where there will be only one audit in three years u/s 122, which was welcomed by OICCI members.
Therefore the removal of condition of one audit in three years in the Finance Bill 2020, is a shock for OICCI members.
“Hence, we strongly advocate maximum of one for audit within three years, for promoting Ease of Doing Business,” the OICCI said.
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Inland Revenue offices to observe extended working hours on June 29 – 30
ISLAMABAD: The offices of Inland Revenue have been directed to observe extended working hours on last two days of current fiscal year in order to facilitate taxpayers in payment of duty and taxes.
In an office order issued on Monday, the Federal Board of Revenue (FBR) said that all Large Taxpayers Units (LTUs), Corporate Regional Tax Offices (CRTOs) and RTOs would remain open and observe extended working hours till 9:00 PM on Monday June 29, 2020 and till 11:00PM on Tuesday June 30, 2020 to facilitate taxpayers in payment of duty and taxes.
The FBR directed chief commissioners to establish liaison with State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of tax collection by these branches on June 30, 2020 as per SBP’s letter dated June 18, 2020.
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FBR exempts duty, taxes on import of Remdesivir
ISLAMABAD: Federal Board of Revenue (FBR) on Monday exempt duty and taxes on import of antiviral drugs for prevention of coronavirus.
The FBR issued SRO 557(I)/2020 to exempt income tax on import of finished drug Remdesivir 100mg injection and injectable solution 100 mg vital.
A new section 12D has been inserted to Section 148 of Income Tax Ordinance, 2001 to provide relief on import of the drug.
Similarly, another SRO 558(I)/2020 has been issued by the FBR to exempt the import of finished drug Remdesivir 100 mg injection and injectable solution 100mg vial (PCT3004.9099) from whole of the customs duty and additional customs duty.
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Tax credit limit reduced by 50pc on charitable donations
ISLAMABAD: The limit of tax credit has been reduced by 50 percent on amount paid in cash or in kind to charitable donations, sources in Federal Board of Revenue (FBR) said.
The sources said that under the existing provisions of the last a person is entitled to tax credit on account of charitable donation paid in cash or in kind.
Currently such credit is allowed to the extent of lesser of: total amount donated in the year, including fair market value of any property given; or where the person:
(i) an individual or association of person, 30 percent of the taxable income of the person the year; or
(ii) a company, 20 percent of the taxable income of the person the year.
Deloitte Yousuf Adil, Chartered Accountants, said that the Finance Bill 2020 proposed to reduce the limit of credit by 50 percent in case of donations made to an associate as under:
(a) Total amount donated in the year, including fair market value of any property given; or
(b) Where the person:
(i) an individual or association of person, 15 percent of the taxable income of the person for the year; or
(ii) a company, 10 percent of the taxable income of the person for the year.