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Tag: Federal Board of Revenue

The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.

  • FBR announces first POS prize scheme draw on Jan 15

    FBR announces first POS prize scheme draw on Jan 15

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday announced that the first balloting for prize money on invoices issued by retailers of Point of Sale (POS) will be held on January 15, 2022.

    The FBR said that thousands of prizes worth a hundred thousand rupees will be distributed every month to the winners after computerized balloting.

    Those buying from POS integrated retailers in the month of December 2021 will be included in the balloting, the FBR said.

    READ MORE: FBR redefines Tier-1 retailers for integration

    The revenue body encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.

    FBR is launching a media campaign for the awareness of people w.e.f. December 11, 2021.

    The FBR previously issued a procedure for participating in the prize scheme.

    The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.

    READ MORE: Who are Tier-1 retailers under Sales Tax Act? PkRevenue.com

    The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.

    The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.

    In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:-

    Name;

    CNIC; and

    Mobile number

    Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.

    In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.

    The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.

    Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.

    The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.

    READ MORE: FBR launches prize scheme for POS customers

  • FBR announces cash reward to IREN officials for raids

    FBR announces cash reward to IREN officials for raids

    KARACHI: Dr. Muhammad Ashfaq Ahmed, Chairman of the Federal Board of Revenue (FBR), has announced cash reward for officials of Inland Revenue Enforcement Network (IREN) for conducting successful raids against illegal sugar bags.

    A statement issued on Saturday said that the Chairman had appreciated the performance of IREN squads and announced a cash reward for those officers, who conducted successful raids. He stated that the Track & Trace system coupled with IREN’s valiant drive would help overcome the menace of non-tax paid goods in the market.

    It is pertinent to mention that the Prime Minister of Pakistan has recently launched a Track & Trace System on the Sugar Sector. Therefore, IREN has also been entrusted to ensure its enforcement in the entire supply chain of the Sugar Industry.

    For this purpose, the Chief Coordinator IREN and his Regional Enforcement Squads across Pakistan are geared to conduct raids and ensure seizures on the non-tax paid sugar stocks, which move out of the factory premises/warehouses without tax stamps.

     As a result, IREN Squads have intensified their operations in every nook and corner of the country, against the non-compliant supply chain operators dealing in the sugar sector in order to maximize revenue potential.

    The Squads have raided various sugar dealers in almost all big cities and various small towns to check sugar stocks. During these raids Hyderabad Squad has seized stock of 172 sugar bags without affixing of Tax Stamps in the premises of M/s Gulzar & Co. The stock of 172 sugar bags was seized and legal action was being initiated against those who were found involved in the tax evasion.

    Building on its momentum to maximize tax compliance, FBR IREN squads, has seized 8,320,000 illegal cigarettes worth Rs. 21,479,625 involving duties and taxes of Rs. 17,242,635 in the month of November, 2021. Likewise, in the first five months of FY- 2021-22, IREN has seized non duty / tax paid cigarettes of Rs. 177,959,737 (approximately 74,131,500 sticks) resulting in detection of evasion of duties and taxes worth Rs. 142,905,265.

    FBR chairman urges taxpayers to file annual return timely
  • Special Judges may be appointed under Sales Tax Act

    Special Judges may be appointed under Sales Tax Act

    Section 37C of the Sales Tax Act, 1990 revealed that a special Judges may be appointed for sales tax cases.

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  • Procedure for IR officers on arrest of person

    Procedure for IR officers on arrest of person

    Section 37B of Sales Tax Act, 1990 has explained procedure for IR officers on arrest of person.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 37B of the Sales Tax Act, 1990:

    37B. Procedure to be followed on arrest of a person.– (1) When an officer of Inland Revenue authorized in this behalf arrests a person under Section 37A, he shall immediately intimate the fact of the arrest of that person to the Special Judge who may direct such Officer to produce that person at considers such time and place and on such date as the Special Judge considers expedient and such Officer shall act accordingly.

    (2) Notwithstanding anything contained in the sub-section (1), any person arrested under this Act shall be produced before the Special Judge or, if there is no Special Judge within a reasonable distance, to the nearest Judicial Magistrate, within twenty-four hours of such arrest, excluding the time necessary for the journey from the place of arrest to the Court of the Special Judge or, as the case may be, of such Magistrate.

    (3) When any person is produced under sub-section (2) before the Special Judge, he may, on the request of such person, after perusing the record, if any and after giving the prosecution an opportunity of being heard, admit him to bail on his executing a bond, with or without sureties, or refuse to admit him to bail and direct his detention at such place as he deems fit:

    Provided that nothing herein contained shall preclude the Special Judge from cancelling the bail of any such person at a subsequent stage if, for any reason, he considers such cancellation necessary, but before passing such order he shall afford such person an opportunity of being heard, unless for reasons to be recorded he considered that the affording of such opportunity shall defeat the purposes of this Act.

    (4) When such person is produced under sub-section (2) before a Judicial Magistrate, such Magistrate may, after authorising his detention in such custody at such place and for such period as he considers necessary or proper for facilitating his earliest production before the Special Judge, direct his production before the Special Judge on a date and time to be fixed by him or direct such person to be forthwith taken to, and produced before, the Special Judge and he shall be so taken.

    (5) Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the Judicial Magistrate from remanding any such person to the custody of an officer of Inland Revenue holding inquiry against that person if such officer makes a request in writing to that effect, and the Special Judge or the Judicial Magistrate, after perusing the record, if any, and hearing such person, is of the opinion that for the completion of inquiry or investigation it is necessary to make such order:

    Provided that in no case the period of such custody shall exceed fourteen days.

    (6) When any person is arrested under this Act, an officer of Inland Revenue shall record the fact of arrest and other relevant particulars in the register specified in sub-section (10) and shall immediately proceed to inquire into the charge against such person and if he completes the inquiry within twenty-four hours of his arrest, excluding the time necessary for journey as aforesaid, he may, after producing such person before the Special Judge or the nearest Judicial Magistrate, make a request for his further detention in his custody.

    (7) While holding an inquiry under sub-section (6), an officer of Inland Revenue shall exercise the same powers as are exercisable by an officer in charge of a police station under the Code of Criminal Procedure, 1898 (Act V of 1898), but such officer shall exercise such powers subject to the foregoing provisions of this section while holding an inquiry under this Act.

    (8) If an officer of Inland Revenue, after holding an inquiry as aforesaid, is of the opinion that there is no sufficient evidence or reasonable ground for suspicion against such person, he shall release him on his executing a bond, with or without sureties, and shall direct such person to appear, as and when required, before the Special Judge, and make a report to the Special Judge for the discharge of such person and shall make a full report of the case to his immediate superior.

    (9) The Special Judge to whom a report has been made under sub-section, (8) may, after the perusal of record of the inquiry, and hearing the prosecution, agree with such report and discharge the accused or, if he is of the opinion that there is sufficient ground for proceedings against such person, proceed with his trial and direct the prosecution to produce evidence.

    (10) An officer of Inland Revenue empowered to hold inquiry under this section shall maintain a register to be called “Register of Arrests and Detentions” in the prescribed form in which he shall enter the name and other particulars of every person arrested under this Act, together with the time and date of arrest, the details of the information received, the details of things, goods or documents, recovered from his custody, the name of the witnesses and the explanation, if any, given by him and the manner in which the inquiry has been conducted from day to day; and, such register or authenticated copies of its aforesaid entries shall be produced before the Special Judge, whenever such Officer is so directed by him.

    (11) After completing the inquiry, an officer of Inland Revenue shall, as early as possible, submit to Special Judge a complaint in the same form and manner in which the officer incharge of a police station submits a report, before a court.

    (12) Magistrate of the first class may record any statement or confession during inquiry under this Act, in accordance with the provisions of Section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898).

    (13) Without prejudice to the foregoing provisions of this section, Board, with the approval of the Federal Minister-in-charge, may, by notification in the official Gazette, authorize any other officer working under the Board to exercise the powers and perform the functions of an officer of Inland Revenue under this section, subject to such conditions, if any, that it may deem fit to impose.

    (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.)

    Commissioner having power to arrest and prosecute
  • Commissioner having power to arrest and prosecute

    Commissioner having power to arrest and prosecute

    Section 37A of Sales Tax Act, 1990 has explained commissioner having power to arrest and prosecute.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 37A of the Sales Tax Act, 1990:

    37A. Power to arrest and prosecute.– (1) An officer of Inland Revenue not below the rank of an Assistant Commissioner of Inland Revenue or any other officer of equal rank authorised by the Board in this behalf, who on the basis of material evidence has reason to believe that any person has committed a tax fraud or any offence warranting prosecution under this Act may cause arrest of such person.

    (2) All arrests made under this Act shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V of 1898).

    (4) Notwithstanding anything contained in sub-section (1) to subsection (3) or any other provision of this Act, where any person has committed a tax fraud or any offence warranting prosecution under this Act, the Commissioner may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the amount of tax due along with such default surcharge and penalty as is determined under the provisions of this Act.

    (5) Where the person suspected of tax fraud or any offence warranting prosecution under this Act is a company, every director or officer of that company whom the authorised officer has reason to believe is personally responsible for actions of the company contributing the tax fraud or any offence warranting prosecution under this Act shall be liable to arrest; provided that any arrest under this sub-section shall not absolve the company from the liabilities of payment of tax, default surcharge and penalty imposed under this Act.

    (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.)

    Power to order persons for evidence and documents
  • Power to order persons for evidence and documents

    Power to order persons for evidence and documents

    Section 37 of Sales Tax Act, 1990 has explained power to summon persons to give evidence and produce documents in inquiries.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 37 of the Sales Tax Act, 1990:

    37. Power to summon persons to give evidence and produce documents in inquiries under the Act.– (1) Any officer of Inland Revenue shall have powers to summon any person whose attendance he considers necessary either to tender evidence or to produce documents or any other thing in any inquiry which such officer is making for any of the purposes of this Act.

    (2) Any person summoned under sub-section (1) shall be bound to attend either in person or by an authorised agent, as the officer of Inland Revenuemay direct;

    Provided that a person who is exempted from personal appearance in a court under section 132 and 133 of the Code of Civil Procedure (Act V of 1908), shall not be required to appear in person.

    (3) Any inquiry before an officer of Inland Revenueshall be deemed to be a judicial proceeding within the meaning of section 193 and 228 of the Pakistan Penal Code (Act XLV of 1860).

    (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.)

    Exemption from penalty and default surcharge
  • Exemption from penalty and default surcharge

    Exemption from penalty and default surcharge

    Section 34A of the Sales Tax Act, 1990, provides a mechanism for the exemption from penalty and default surcharge imposed under Sections 33 and 34 of the Act.

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  • FBR issues Taxpayers’ Charter (rights, obligation) guide

    FBR issues Taxpayers’ Charter (rights, obligation) guide

    The Federal Board of Revenue (FBR) has issued taxpayers’ charter to define rights of the taxpayers and their obligation toward their liability to pay tax.

    According to the FBR, the taxpayers’ charter defines rights and obligations of taxpayers, which will help eliminate the traditional perception and create a new tax culture of mutual trust, confidence and friendly working relationship between the taxpayers and the taxmen.

    It defines a taxpayer as: “Any person who pays or is obliged to collect, deduct or pay any of the taxes administered by the FBR.”

    The primary responsibility of the tax office is to collect due tax under the law within reasonable time ensuring least inconvenience to the taxpayer. For this purpose, Tax Facilitation Centers have been established in all Large Taxpayers Units and Regional Tax Offices, wherein one window operation facility is provided to the taxpayers for swift resolution of their tax-related issues, the FBR added.

    These offices are manned with professional trained outfits for the purpose of facilitation & guidance of the taxpayers.

    READ MORE: Tax officials may face criminal proceedings under ST Act

    The FBR defines TAXPAYERS’ RIGHTS as:

    Be Fair, reasonable and courteous

    We treat you fairly and equitably. This includes:-

    Paying respect and extending possible help and assistance.

    Handling of your tax professionally and impartially;

    Ensuring uniform interpretation and application of law in letter and spirit;

    Requiring you to pay what is due under the law.

    Treat you as being honest

    We treat you and your representative as honest & fair in tax affairs unless proved otherwise.

    Be accountable for what we do

    We are obliged to act and behave in a professional manner and within the four walls of legal framework.

    Facilitate and educate you

    We provide information and extend all cooperation to help you to understand and meet your tax obligations.

    Keep the information confidential

    We maintain confidentiality of your tax affairs and details, documents, or declarations given during the course of any tax proceedings.

    READ MORE: FBR identifies 482 retailers for POS integration

    Provide access to information

    It includes:

    Right to have access to the information or documents about your tax affairs only.

    Right to have access to explanatory circulars and public rulings given by the Federal Board of Revenue.

    Allow opportunity of being heard

    It includes:

    Allowing reasonable opportunity of being heard before concluding your tax affairs;

    Correct appreciation of facts and circumstances relevant to your case; and

    Allowing sufficient/reasonable compliance time to respond to queries concerning your tax affairs.

    Accept your right of representation

    We accept your right of seeking professional advice concerning your tax affairs. This includes representation of the authorized representatives.

    Accept your right of appeal, review and alternate dispute resolution

    We accept your right to object:

    On disagreements over facts, figures or interpretation of law; or

    For any mistake, error or mal- administration that occurred during the conduct of proceeding of your tax matters.

    READ MORE: Criminal proceedings against officials of RTO-II Karachi in fake sales tax refunds ordered

    Acknowledge and respond to your Communications

    This means to:

    Acknowledge receipt of your communications;

    Respond swiftly and accurately to your queries and requests for assistance; and

    Redress your tax issues professionally.

    Minimize your compliance cost

    This is ensured by:

    Good governess with a view to facilitate, educate and help the compliant taxpayers in resolving tax affairs;

    Avoiding requisition of un-necessary information, details, documents both at the time of filing of tax forms return and during the proceedings of tax affairs;

    Levying the taxes strictly in accordance with law;

    Simplifying the tax laws and processes and introducing the concept of self-assessment in its true spirit;

    Conducting meetings with you/ your representative at agreed time;

    Finalizing proceedings in the minimum possible time;

    Introducing taxpayer friendly, simple and easy to fill tax forms; and

    Providing facilitation and tax education tools (literature, brochures, leaflets, software, website, workshops, seminars, help line etc).

    Redress your grievances

    It includes:

    Processing of your complaints; and

    Resolving your tax-related issues/ problems.

    Issue the due refund of taxes within a reasonable time

    This includes:

    Keeping handy all record of your tax paid and balance payable/ refundable;

    Processing your refund claims and issue due refunds within the prescribed time limit;

    Payment of compensation for delayed refunds; if any.

    Taxpayers Obligations

    FBR expects from taxpayer (you) to voluntarily;

    Register yourself

    Comply with tax laws

    File correct, complete and candid returns and statements prescribed time;

    Pay due taxes;

    Maintain accounts, documents and records of your transactions;

    Be truthful and honest in your dealings with tax authorities;

    Provide complete and information and record, if required under the law.

    READ MORE: Major changes in sales tax regime on the cards

  • Default surcharge for failure in timely tax payment

    Default surcharge for failure in timely tax payment

    Taxpayers are liable to pay default surcharge in case the due payment is not deposited in national kitty in time under Section 34 of the Sales Tax Act, 1990.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 34 of the Sales Tax Act, 1990:

    34. Default Surcharge.– (1) Notwithstanding the provisions of section 11, if a registered person does not pay the tax due or any part thereof, whether wilfully or otherwise, in time or in the manner specified under this Act, rules or notifications issued thereunder or claims a tax credit, refund or makes an adjustment which is not admissible to him, or incorrectly applies the rate of zero per cent to supplies made by him, he shall, in addition to the tax due, pay default surcharge at the rate mentioned below:—

    (a) the person liable to pay any amount of tax or charge or the amount of refund erroneously made, shall pay default surcharge at the rate of twelve per cent per annum, of the amount of tax due or the amount of refund erroneously made; and

    (c) in case, the default is on account of tax fraud, the person who has committed tax fraud shall pay default surcharge at the rate of two per cent per month, of the amount of tax evaded or the amount of refund fraudulently claimed, till such time the entire liability including the amount of default surcharge is paid.

    (2) For the purpose of calculation of default surcharge, –

    (a) in the case of inadmissible input tax credit or refund, the period of default shall be reckoned from the date of adjustment of such credit or, as the case may be, refund is received; and

    (b) in the case of non-payment of tax or part thereof, the period of default shall be reckoned from the 16th day of a month (following the due date of the tax period to which the default relates) to the day preceding the date on which the tax due is actually paid.

    Explanation.– For the purpose of this section tax due does not include the amount of penalty.

    (Disclaimer: The text of the 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.)

    Tax officials may face criminal proceedings under ST Act
  • Major changes in sales tax regime on the cards

    Major changes in sales tax regime on the cards

    The government is set to introduce a finance supplementary bill which may bring major changes in sales tax regime, sources said on Wednesday.

    The sources said that in the Sales Tax Act, 1990, zero-rating under the Fifth Schedule is proposed to be streamlined and certain entries are to be withdrawn.

    Exemption regime under Sixth Schedule is proposed to be curtailed including pharmaceutical sector and restricted to import and local supply of essential commodities only.

    Reduced rates of sales tax under Eight Schedule on certain items are proposed to be streamlined in order to achieve equity in the tax system.

    Likewise, sales tax on import of high-end mobile phones in CBU condition under Ninth Schedule is proposed to be rationalized. The scope of Tier-1 retailers is also proposed to be rationalized.

    The government is also planning to bring changes in Customs Act, 1969.

    Under the Customs Act, 1969 the power of Collector to determine the value of imported or exported goods is proposed to be withdrawn which shall be exercised by Director Valuation that has been the case prior to Finance Act, 2021.

    Similarly, the appeal against the decision of DG Valuation shall hereinafter be filed before judicial for a instead of Member Customs (Policy) in consonance with the principle of separation of judicial and executive functions. Moreover, in the interest of revenue, corporate guarantee is proposed to be taken out as was the case before September 15, 2021.

    Minimal amendments in the Income Tax Ordinance, 2001 are aimed at promoting digital economy, documentation and facilitation measures. Additionally, advance tax on foreign produced drama serials is proposed to be introduced and slightly enhanced on cellular services.

    Disclosure of information in respect of high-level public officials is proposed in line with the requirements of the development partners, rule of law and integrity. Furthermore, Special Purpose Vehicle (SPV) under the REIT regulations, 2015 is proposed to be extended.

    During the tenure of the present Government far-reaching structural and administrative reforms have been initiated to achieve economic and financial stability through inclusive reforms and sustainable economic growth.

    The Federal Board of Revenue (FBR) is committed to achieve tax reforms with the assistance of development partners with the ultimate objective to be able to generate sufficient revenue for the State.

    The underlying purpose of reforms is also to rebuild the tax system on ideal principles of taxation and without any distortions. Amendments in tax laws, as outlined below, are warranted in order to achieve efficiency and equity in the tax systems through removal of aberrations, broaden the tax base, and document the economy.

    Tax officials may face criminal proceedings under ST Act