ISLAMABAD: The Federal Board of Revenue (FBR) announced on Wednesday, December 1, 2021, the updated valuation and revaluation of immovable properties in various cities across Pakistan. This move aims to align property values with current market trends, enhancing transparency and fairness in real estate transactions.
(more…)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 defers digital payment provision till December 31
ISLAMABAD: The Federal Board of Revenue (FBR) has deferred the implementation of a digital mode of payment for another month i.e. December 31, 2021.
The digital mode of payment has been made mandatory for the corporate sector, which was to be implemented from December 01, 2021.
The FBR issued circular No. 10 of 2021-22 on Wednesday to allow further extension till December 31, 2021.
“In exercise of the powers conferred under Section 214A of the Income Tax Ordinance, 2001 (hereinafter “the Ordinance”) and taking cognizance of various representations filed by the taxpayers, the Federal Board of Revenue is pleased to extend the deadline for digital payments by Corporate Sector stipulated in Section 21(1a) of the Ordinance up to December 31, 2021.”
Previously, the FBR issued Circular No. 09 of 2021-22 to allow an extension in the deadline for implementation of digital mode of payment up to November 30, 2021.
The new provision was introduced through Tax Laws (Third Amendment) Ordinance, 2021.
The FBR in its explanation through Circular No. 07 dated September 23, 2021 said: to improve documentation, a new clause (la) has been inserted in section 21 of the Ordinance.
The Pakistan Tax Bar Association (PTBA) in a letter to the FBR chairman stated that the implementation of digital payment was not practical at the moment.
-
Imprisonment of 5yrs for denying access to FBR officials
Taxpayers who deny or obstruct the access to authorized officials of the Federal Board of Revenue (FBR) to the business premises under section 25, Section 38, Section 38A or Section 40B of Sales Tax Act, 1990 , then the taxpayers shall liable to face imprisonment up to five years on conviction by a special judge.
(more…) -
Three-year jail for making false statement under tax law
A taxpayer is liable to face three years in jail for making a false statement or providing forged documents to tax authorities under Section 2(37) 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 33(11) of the Sales Tax Act, 1990:
33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –
11. Any person who, –
(a) submits a false or forged document to any officer of Inland revenue; or
(b) destroys, alters, mutilates or falsifies the records including a sales tax invoice; or
(c) Knowingly or fraudulently makes a false statement, false declaration, false representation, false personification, gives any false information or issues or uses a document which is forged or false.
Such person shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to the amount of tax involved, or with both.
(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.)
-
Taxpayers to pay penalty on failure to provide information
Section 33(10) of Sales Tax Act, 1990 stated that taxpayers in failure to provide information are required to pay penalty.
(more…) -
IRS officer awarded major penalty for corruption
ISLAMABAD: An officer of the Inland Revenue Service (IRS) has been awarded a major penalty of ‘dismissal from service’ after the officer was found guilty of corruption and misconduct.
The Federal Board of Revenue (FBR) on a complaint of a taxpayer initiated an inquiry against Syed Zubair Shah, a BS-19 officer of IRS.
M/s. Pak Steel Re-Rolling Mills, Islamabad lodged a complaint against the IRS officer last year.
The FBR appointed Ms. Qaisara Fatima (IRS/BS-20) as Inquiry Officer to probe the charges against the accused officer. The inquiry officer submitted a report on December 04, 2020 with the findings that the charges of corruption and misconduct were proved against the officer.
On the basis of the inquiry report, a Show Cause Notice was issued on 22.12.2020 to the accused officer with the directions to show cause within seven (07) days of the receipt as to why one or more penalties including Major Penalty of “Dismissal from Service” under Government Servants (Efficiency & Discipline) Rules, 1973 may not be imposed upon him.
The accused officer furnished a reply to the Show Cause Notice and denied charges leveled against him and sought an opportunity of personal hearing which was granted by the Authorized Officer on 21.01.2021.
The accused officer challenged the evidence and the Authorized Officer directed the Inquiry Officer to get a forensic audit conducted from the Cyber Crime Wing of FIA. The Inquiry Officer repeatedly directed the accused officer to get his voice recorded for purpose of his voice samples to be produced before FIA authorities; however, there the accused was reluctant and avoided getting his voice recorded. Accordingly, to decide the case another opportunity for a personal hearing was granted by the Authorized Officer on 08.11.2021.
Moreover, the inquiry officer sent the evidence for a forensic audit to the FIA, which contained the voice of the accused and Chief Accountant of M/s. Pak Steel Re-Rolling Mills, Islamabad. The report received from FIA on the telephonic conversation clearly states that spectrogram analysis of audio files obtained from the cell phone of the complainant depicts no sudden variations in pitch and frequency. Therefore, the FIA’s report regarding the conversation recorded on the CD (evidence) confirmed the voice/conversation of the accused officer with the complainant.
After examining the record of the case, written reply of the accused officer including a reply to the Show Cause Notice and findings of the inquiry officer, the Authorized Officer recommended imposition of a major penalty of “dismissal from service” under Rule 4(1)(b)(iv) of Government Servants (Efficiency and Discipline) Rules, 1973 upon Syed Zubair Shah (IRS/BS-19).
The Competent Authority, i.e Secretary Revenue Division after considering all the aspects and material relating to the case, defense of the accused officer including a reply to the Show Cause Notice, findings of the inquiry officer, and recommendations of the Authorized officer, has decided to impose a major penalty of “dismissal from service” under Rule 4(1)(b)(iv) of Government Servants (Efficiency and Discipline) Rules, 1973 upon Syed Zubair Shah (IRS/BS-19) presently posted as Secretary (Admin Pool), Federal Board of Revenue (HQ), Islamabad (under suspension).
In light of the above, a major penalty of “dismissal from service” is imposed upon Syed Zubair Shah (IRS/BS-19), Secretary (Admin Pool), Federal Board of Revenue (HQ), Islamabad as laid down in sub-clause (iv) of clause (b) of sub Rule (1) of Rule 4 of the Government Servants (Efficiency & Discipline) Rules, 1973 with immediate effect.
Syed Zubair Shah (IRS/BS-19), shall have the right to appeal to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 within a period of 30 days from the date of communication of this Notification, as provided under the relevant Rules.
-
FBR collects over Rs2.31 trillion in five months
ISLAMABAD: The Federal Board of Revenue (FBR) – Pakistan’s apex revenue collecting agency – has collected over Rs2.31 trillion during the first five months (July – November) of the fiscal year 2021/2022.
According to provisional statistics released by the FBR on Tuesday, the net revenue collection is at Rs2.314 trillion during the first five months, which is Rs298 billion higher than the target of Rs2.016 trillion for the period.
This represents a growth of about 36.5 per cent over the collection of Rs. 1.695 trillion during the same period last year.
While chasing the target of Rs 408 billion fixed for the month of November 2021, the net collection for the month realized Rs. 470 billion, which is Rs 62 billion in excess of the assigned monthly target, representing an increase of 35.2 per cent over Rs 348 billion collected in November 2020.
These figures would further improve before the close of the day and after book adjustments have been taken into account, the FBR said.
On the other hand, the gross collections increased from Rs. 1,783 billion during July-November, 2020 to Rs. 2,437 billion in current Financial Year, showing an increase of 36.7 per cent.
The amount of refunds disbursed was Rs 123 billion during July- November 2021 compared to Rs. 88 billion paid last year, showing an increase of 40.5 per cent.
It is pertinent to mention that after collecting over Rs. 4.7 trillion and exceeding its assigned revenue targets set for tax year 2020-21, FBR has successfully maintained the momentum set in July, 2021.
Its tax collection posted historic high growth in the first quarter of the current fiscal year. During the first four months (July-October), FBR has far surpassed its revenue target by Rs 233 billion.
This spectacular performance in the first five months of the current financial year clearly shows that FBR is well on its way to achieving the assigned target of Rs. 5.829 trillion for the year despite the daunting challenges, compelling constraints posed by the corona pandemic, and sporadic tax cuts announced by the government as relief and price stabilization measures.
-
FBR asked to redouble efforts for broadening tax base
ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, on Monday asked the Federal Board of Revenue (FBR) to redouble its efforts for broadening the tax base.
The adviser expressed his full support and confidence to the FBR team and advised to redouble their efforts and launch the taxpayer outreach initiative at the earliest to expand the existing tax base and boost the revenue collection. Tarin chaired a meeting on broadening of the tax base by the FBR at the Finance Division.
Chairman FBR, senior officers from FBR, and Finance Division attended the meeting.
Chairman FBR and his team gave a detailed presentation on the progress on readiness for potential taxpayer outreach initiatives to boost revenue growth and resource mobilization.
Chairman FBR apprised the Adviser that pragmatic steps have been initiated for the compilation of data, with the support of NADRA, which would be available to potential and current taxpayers in a presentable and comprehensible manner through a web portal.
Key challenges to reaching out to potential and current taxpayers, public awareness, and confidence-building measures taken by FBR were also discussed in the meeting.
The adviser lauded the steps taken by FBR and stressed that efficient and robust communication with the taxpayers should be at the center of activity undertaken by FBR to harness public support for its efforts for broadening the tax base and promoting a tax compliant culture in the country.
-
FBR imposes AML condition on immovable properties
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday imposed a condition under the Anti-Money Laundering Act, 2010 on transfers and registration of immovable properties.
The FBR DNFBPs Order No. 1 of 2021 impose the condition.
The FBR said that the Anti-Money Laundering Act, 2010 empowered the revenue board to license or register its reporting entities (R0s) namely, Designated Non-Financial Businesses and Professions (DNFBPs), impose conditions on any activities by DNFBPs to prevent the offenses of money laundering, predicate offenses or financing of terrorism through the issuance of Directions or imposing Conditions under the relevant provisions of the AMLA, 2010.
Now, in the exercise of the powers conferred under section 6A of the AMLA, 2010 read with clause 1(iii) of Schedule IV ibid, and to foster the anti-money laundering and countering the financing of terrorism regime in Pakistan, FBR has imposed the following Condition on all Real Estate Development Authorities, Cooperative Housing Societies, and all other Housing Societies, Schemes, and Firms dealing in the real estate, namely:-
“Condition No. 1 of 2021: No public or private Development Authority shall conduct the business activity with any real estate agent for the transfer or registration of immovable property unless the Real Estate Agent is registered with the Federal Board of Revenue as a Designated Non-Financial Business and Profession (DNFBP).”
The above condition shall be disseminated to all Real Estate Agents registered or dealing with the Development Authorities, Housing Authorities Cooperative Housing Societies and other Housing Schemes dealing in the development of land for residential & commercial purposes, construction, and sale/purchase and/or transfer of ownership rights and also displayed on all relevant places for the information of general public.
The real estate agents may also be informed to obtain Registration Certificates from the concerned Director, DNFBPs once registered as a DNFBP with FBR.
Any volition of this Condition shall attract the penal provisions under the AML Act, 2010 and the AML/CFT Sanctions Rules, 2020. This Condition comes into effect on January 1, 2021, the FBR added.
-
Up to Rs50,000 penalty for obstructing access to records
Section 33(9) of the Sales Tax Act, 1990, stipulates that individuals who obstruct officials of Inland Revenue in accessing records may face penalties ranging from Rs5,000 to Rs50,000.
(more…)