Pkrevenue.com

Tag: FBR

Get the latest FBR news, tax updates, income tax, sales tax, customs, notifications, and policies from the Federal Board of Revenue.

  • How to check ATL status?

    How to check ATL status?

    KARACHI: Appearance of name on active taxpayers list (ATL) has become very important especially after the introduction of 10th Schedule to Income Tax Ordinance, 2001 through Finance Act, 2019.

    The filing of income tax return is mandatory for persons driving taxable income or specified under Section 114 of Income Tax Ordinance, 2001.

    The appearance of names on the ATL is only possible after filing income tax returns within due date. In case persons are not on the ATL then the rate of withholding tax shall be increased by 100 percent on various transactions.

    Persons fail to file their returns by due date but file after the date will also not qualify to enlist their name on the ATL until fine is not paid to the Federal Board of Revenue (FBR).

    Currently the ATL is in applicable on the basis of income tax returns filed for tax year 2018. The FBR will issue new ATL on the basis of returns filed for tax year 2019 on March 01, 2020.

    The last date for filing of income tax returns for tax year 2019 is February 28, 2020. The new ATL shall carry the names of those taxpayers who filed their income tax returns up to February 28, 2020.

    A taxpayer should check his/her status on the ATL before making transactions in order to avail reduced rate of tax rates.

    CHECK ACTIVE TAXPAYER STATUS

    Active Taxpayer status can be checked in the following three (3) ways:

    VERIFICATION THROUGH ONLINE PORTAL

    The ATL status check allows you to confirm your Active Taxpayer status.

    CHECK ACTIVE TAXPAYER STATUS BY SMS

    Check Individual’s Active Taxpayer status by SMS through the following procedure:

    Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.

    Check Active Taxpayer status of AOP and Company by SMS through the following procedure:

    Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.

    Check AJ&K Active Taxpayer status by SMS through the following procedure:

    For Individual, type AJKATL (space) CNIC (without dashes). Send it to 9966.

    Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.

    CHECK ACTIVE TAXPAYER STATUS BY DOWNLOADING ATL

    You can also download ATL from:

    Active Taxpayer List (Income Tax)

    The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through Finance Act 2018.

  • No service charges allowed for collecting withholding tax

    No service charges allowed for collecting withholding tax

    KARACHI: Federal Board of Revenue (FBR) has not allowed deduction of service charges by withholding agents for collecting/deducing withholding tax on behalf of the federal tax authority.

    According to an official document, under the Income Tax Ordinance, 2001 the withholding agents are not entitled to receive any service charges for collection or deduction of tax as a withholding agent.

    However, it has been noticed that certain withholding agents including provincial governments and other autonomous organizations are claiming service charges for acting as withholding agents.

    In order to expressly disallow such claims, new sub-section (6) and (7) have been inserted in section 168 which provides that notwithstanding anything contained in any other law or any rules, for the time being in force, no amount is to be deducted on account of service charges from the tax withheld or collected by any person under the provisions of this Ordinance.

    As provided in sub-section (7) in case any amount is deducted on account of service charges by the person, the said person will be liable to pay this amount to the Federal Government and all the provisions of the Ordinance shall apply in so far as they apply to the recovery of tax.

  • FBR starts examining incomes of debt, credit card holders

    FBR starts examining incomes of debt, credit card holders

    ISLAMABAD: Federal Board of Revenue (FBR) has started examining incomes of persons making payments through debt and credit cards.

    Sources in the FBR said that banks had provided details of persons, who made payments through debit and credit cards above Rs200,000 in a month.

    The banks have provided information of transactions made through payment cards during July 01 – December 31, 2019.

    The sources said that the banks are required to file bi-annual statement included a list of payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to rupees two hundred thousand or more during the preceding calendar month.

    The banks are also provide of withholding tax deducted on persons remitting amounts abroad through credit or debit or prepaid cards.

    According to Section 236Y of Income Tax Ordinance, 2001, every banking company shall collect advance tax at the rate of one percent at the time of transfer of any sum remitted outside Pakistan, on behalf of any person who has completed a credit card transaction, a debt card transaction, or a prepaid card transaction with a person outside Pakistan.

    The tax collected under this head is adjustable against the payable tax by a person filing income tax return.

  • FBR considers transfer back customs officials

    FBR considers transfer back customs officials

    The Federal Board of Revenue (FBR) is actively reviewing requests for the transfer back of Pakistan Customs officials who were posted to outstations in 2019. This move comes in response to a significant number of appeals submitted by affected officials over the years.

    (more…)
  • FBR chairperson to inaugurate International Tax Operations directorate on Feb 22

    FBR chairperson to inaugurate International Tax Operations directorate on Feb 22

    KARACHI: Ms. Nausheen Amjad, Chairperson, Federal Board of Revenue (FBR) will inaugurate directorate of international tax operations in Karachi on Saturday February 22, 2020.

    Member Inland Revenue (IR) and Director General Offshore Taxation will also accompany the FBR chairperson.

    Office of the Directorate of International Tax Operation Karachi (Sindh) located at PNSC building.

    The directorate of international tax operations has mandate to receive and send information from other jurisdictions under spontaneous, automatic and on demand exchange of information under exchange of information agreements.

    The directorate has been authorized to levy and recover tax by passing an assessment order under section I23 (1A) of Income Tax Ordinance, 2001 in case of undeclared off-shore assets and incomes.

    It has also been authorized to receive, transmit and exchange country reports to the jurisdictions that are parties to international by country agreements with Pakistan.

    Further the FBR has empowered the directorate to conduct transfer pricing audit in cases selected for such audit.

  • Audit cases should be assigned to tax officials on basis of skills

    Audit cases should be assigned to tax officials on basis of skills

    KARACHI: Tax managers have suggested that audit cases should be assigned to tax officials on the basis of skills and experience.

    “Cases should be assigned on the basis of skill and experience of the officers as it reduces no change monitoring and enhance productivity,” according to an official document on monitoring of withholding taxes.

    If a pre-monitoring analysis is conducted by the officers, they will be in a position to ascertain the true potential of specific cases, sectors and their overall impact on the revenue generating activities of the department.

    For this purpose, they should examine:

    — nature and extent of business entities;

    — past compliance behaviour, tax fraud activities;

    — group activities as to compliance of tax laws;

    — results of previous monitoring and tax audits by the Income Tax and the Sales Tax departments;

    — overall declarations and amended Returns, etc, penalties, refunds and corporate status can give a good guidance for selection or otherwise of a case for detailed monitoring of withholding taxes;

    — Past information about surveys and special/sectoral studies can also be helpful;

    — Taxpayer’s complete particulars are important for follow-up;

    For the sake of transparency, it is always good for the tax department to state the following;

    — Scope of the monitoring process;

    — Process to be followed by the departmental officers for monitoring of a specific case;

    — The taxpayers should be informed as to how they will be contacted;

    — How the case is to be discussed and who will represent the department;

    — How the record will be examined;

    — How to convey the findings of the examination/discussions on the cases to the taxpayers;

    — Mechanism for submitting replies by the taxpayers;

    — Writing the reports about monitoring; and

    — To determine future course of action under the relevant provisions of law in the light of the findings of the report, wherever requiring further action.

  • Regulatory duty on wheat import withdrawn; SRO issued

    Regulatory duty on wheat import withdrawn; SRO issued

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued notification to withdraw regulatory duty on import of wheat and other wheat products.

    The Revenue Division issued SRO 119(I)/2020 dated February 19, 2020 to amend SRO 680(I)/2019 to withdraw regulatory duty on import of wheat.

    The government imposed 60 percent regulatory duty on import of wheat, which has been withdrawn through the latest SRO.

  • Income tax return filing hits new peak of 2.8 million

    Income tax return filing hits new peak of 2.8 million

    ISLAMABAD: The income tax return filing of tax year 2018 has reached to a new peak at 2.8 million by February 16, 2020, according to latest Active Taxpayers List (ATL) issued by Federal Board of Revenue (FBR).

    (more…)
  • Tax authorities capture huge cash transactions of dress designers; start assessment

    Tax authorities capture huge cash transactions of dress designers; start assessment

    KARACHI: Tax authorities have captured millions of rupees cash transactions by many dress designers. The authorities are now making assessment on the basis of such transactions for imposing income tax for past five years, sources said on Wednesday.

    The sources said that the tax authorities had captured the cash transactions while disguising themselves as customers during their visits to those places where mostly wedding dresses were being displayed for sale.

    Regional Tax Office (RTO) II, Karachi, a revenue collecting arm of Federal Board of Revenue (FBR), identified such dress designers, who were evading income tax. The office issued notices to explain the reasons of very low amount of tax payment or no payment of tax at all.

    The tax office during survey found that there was a sector of marriage dress designers, who charge exorbitant amount for the bridal dress making.

    Some of the designer even charge millions for a single dress but when their income tax returns were analyzed it was found that quite a large number of these dress designers are paying very meager amount of tax i.e. their declared income does not commensurate with their receipts.

    Some of them are even not on tax roll.

    The RTO-II Karachi identified the following dress designers:

    01. Shehrnaz

    02. Nada Tai

    03. Aisha Ahmed

    04. Wardha Saleem

    05. Sanam Chaudhri

    06. Sania Maskatiya

    07. Cartes by Pasho

    08. Silhouettes by Ash & Uzma

    09. Nida Azwer

    10. Waqar J. Khan

    11. Kavalier Laser Cut Innovations

    12. Rozina Munib

    13. Ayesha Sarfaraz

    14. Farida Qureshi

    15. Saleha

    16. Mahin

    17. Natasha Kamal

    18. Basic

    19. Sarah Arshad Gilani

    20. Amna Chaudhry

    21. Chikankari

    22. House of Farah V

    23. Sable Vogue

    24. Zuri by Zainab Fawad

    The sources said that the returns of above were being analyzed and desk audit was being conducted.
    The information obtained about their income would be cross matched with declared income and wealth statement filed and withholding statement filed by withholding agents.

    The tax office estimated huge loss of revenue would be detected.

    Notices under section 176 of Income Tax Ordinance, 2001 have been issued and further progress would be finalized by February 27, 2020.

  • IR officers to get information of importers through online customs system

    IR officers to get information of importers through online customs system

    KARACHI: The officers of Inland Revenue to access online system of customs clearance for monitoring of withholding tax collected from importers.

    The sources in Federal Board of Revenue (FBR) said that the Collectors of Customs of Sea Ports/Dry Ports are obliged to collect withholding tax on imports as per prescribed rates.

    In the case of goods/equipments imported through Airways, each Collector is obliged to collect tax at the time of clearance. Statements are to be filed on monthly basis.

    Tax under this section is collected from all, except from the imports by Government or exempt entities on the basis of certificate issued by a Commissioner.

    The sources said that Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) have access to WeBOC – the online customs clearance system – for accessing the documents filed by importers for determination of withholding tax at import stage.

    According to official documents for monitoring of withholding taxes, said that the authorized officer of each RTO should coordinate with Customs authorities, hold macro analysis of imports by Government, by other agencies, those treated exempt, and perform the system audit of imports, if required.

    The exemptions allowed to the imports made by exempt entities, the cases where Commissioner issued exemption certificates or SRO based exemptions were allowed; need to be examined to ascertain their admissibility.

    Categorization of imports, as provided in the online system should be strictly enforced by the Customs authorities. Concerned RTO should coordinate the matter accordingly.

    A centralized web based system has been introduced for issuance of certificates by the Commissioners and creation of a centralized Database.

    On-line verification of certificates by the concerned authorities will form part of it. This is necessary for ascertaining the genuineness of exemption certificates.
    PRAL should send the data received from NBP/Customs House to each RTO on daily basis.

    Tax collected as per Customs data and tax actually deposited in NBP and reported through CAP should be reconciled by PRAL on monthly basis with the RTO as part of normal exercise for reconciliation of revenue. Discrepancies should be reported to concerned Collector/ PRAL for reconciliation.

    A comprehensive scheme of allotting tax numbers is in place. All importers should essentially have a Tax Registration Number that is either NTN or Free Tax Number (FTN) and no import should be allowed without a valid tax number.