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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’s circulars may not binding on taxpayers

    FBR’s circulars may not binding on taxpayers

    Section 206 of Income Tax Ordinance, 2001 has explained the powers of the Federal Board of Revenue (FBR) to issues circulars for tax authorities. However, these circulars shall not be binding on a taxpayer.

    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 206 of the Income Tax Ordinance, 2001:

    206. Circulars. —(1) To achieve consistency in the administration of this Ordinance and to provide guidance to taxpayers and officers of the Board, the Board may issue Circulars setting out the Board’s interpretation of this Ordinance.

    (2) A circular issued by the Board shall be binding on all Income Tax Authorities and other persons employed in the execution of the Ordinance, under the control of the said Board other than Commissioners of Income Tax (Appeals).

    (3) A Circular shall not be binding on a taxpayer.

    206A. Advance ruling.— (1) The Board may, on application in writing by a non-resident taxpayer, issue to the taxpayer an advance ruling setting out the Commissioner’s position regarding the application of this Ordinance to a transaction proposed or entered into by the taxpayer.

    (2) Where the taxpayer has made a full and true disclosure of the nature of all aspects of the transaction relevant to the ruling and the transaction has proceeded in all material respects as described in the taxpayer’s application for the ruling, the ruling is binding on the Commissioner with respect to the application to the transaction of the law as it stood at the time the ruling was issued.

    (3) Where there is any inconsistency between a circular and an advance ruling, priority shall be given to the terms of the advance ruling.

    (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.)

  • Payment of default surcharge on due date failure

    Payment of default surcharge on due date failure

    Section 205 of Income Tax Ordinance, 2001 has defined payment default surcharge by persons who failed to pay tax amount by due date.

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  • FBR’s powers to tender immunity from prosecution

    FBR’s powers to tender immunity from prosecution

    Section 204 of Income Tax Ordinance, 2001 has empowered the Federal Board of Revenue (FBR), with the approval of the minister-in-charge, to tender immunity to persons from prosecution.

    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 204 of Income Tax Ordinance, 2001:

    204. Power to tender immunity from prosecution.— (1) The Board with the approval of the Minister-in-charge may, for the purpose of obtaining the evidence of any person appearing to have been directly or indirectly concerned in, or privy to the concealment of income or to the evasion of tax, tender to such person immunity from prosecution for any offence under this Ordinance or under the Pakistan Penal Code (Act XLV of 1860), or under any other Federal Law on condition of the person making full and true disclosure of the whole circumstances relating to the concealment of income or evasion of tax.

    (2) A tender of immunity made to, and accepted by, the person concerned shall render the person immune from prosecution for any offence in respect of which the tender was made and to the extent specified in the immunity.

    (3) If it appears to the Board with the approval of the Minister-in-charge that any person to whom immunity has been tendered under this section has not complied with the conditions on which the tender was made or is concealing anything or giving false evidence, the Board with the approval of the Minister-in-charge may withdraw the immunity, and any such person may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which the person appears to have been guilty in connection with the same matter.

    (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.)

    Trial of tax cases by special judge
  • FBR assures traders of facilitating Pak-Afghan trade

    FBR assures traders of facilitating Pak-Afghan trade

    ISLAMABAD: Federal Board of Revenue (FBR) on Saturday assured the traders of providing all facilities for the clearance of goods at the Pak-Afghan border.

    Chairman Federal Board of Revenue, Dr. Muhammad Ashfaq Ahmad accompanied by Syed Tariq Huda Member(Customs Operations) and Saeed Jadoon Member (Customs Policy) on Saturday visited Torkham Border and reviewed the pace and quality of services being provided by Pakistan Customs to facilitate trade between Pakistan and Afghanistan.

    Immediately after his arrival, he ensured the clearance of about 1400 trucks loaded with fruit from Afghanistan which had got stuck at the border.

    The customs staff assured him to accelerate the process of 100 more trucks awaiting clearance.

    Earlier, he held an important meeting with traders from both sides of the border and assured them of all possible assistance by FBR in ensuring the smooth and easy flow of bilateral trade.

    He positively hoped that the Customs staff posted there will maintain the highest standards of professional conduct in the discharge of their official duty.

    It is pertinent to mention that on Friday FBR had issued an important circular granting special exemption from Sales Tax to the import of fresh fruit from Afghanistan.

    This rare concession by FBR is being appreciated by traders from both sides as a landmark decision that will certainly promote trade between the two neighboring countries.

    A day earlier, the FBR issued a press release stating that the chairman would visit the Pak-Afghan border to oversee the function of currency declaration.

    The FBR through the press release denied reports of currency smuggling.

    It said Pakistan Customs has made it mandatory for all passengers flying out of the country to undergo thorough personal scrutiny and 100 per cent declaration of currency through an automated process in order to ward off this nefarious illegal activity. This leaves the little possibility of the subject undesirable practice.

    FBR rebuts currency smuggling to Afghanistan
  • Trial of tax cases by special judge

    Trial of tax cases by special judge

    Section 203 of Income Tax Ordinance, 2001 has described that the Federal Government can appoint more than one special judge for trial of tax cases.

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  • Commissioner’s power to compound offences

    Commissioner’s power to compound offences

    Section 202 of the Income Tax Ordinance, 2001, updated up to June 30, 2021, now allows the Chief Commissioner, with the prior approval of the Board, to compound offences either before or after the institution of proceedings.

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  • Institution of prosecution proceedings

    Institution of prosecution proceedings

    The Federal Board of Revenue (FBR) has been granted enhanced authority to initiate prosecution proceedings under Section 201 of the Income Tax Ordinance, 2001.

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  • New penalty regime introduced for non-filing tax returns

    New penalty regime introduced for non-filing tax returns

    The Federal Board of Revenue (FBR) has introduced new penalty regime introduced for non-filing tax returns in order to encourage documentation.

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  • NADRA’s computation to be treated as assessment: FBR

    NADRA’s computation to be treated as assessment: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has said that computation of income and assets prepared by the National Database Registration Authority (NADRA) shall be treated as assessment.

    The FBR in explanation to Tax Laws (Third Amendment) Ordinance, 2021 said that a new section 175B has been inserted in the Income Tax Ordinance, 2001 aiming to broaden the tax base through collaboration between NADRA and FBR.

    Sub-section (1) of section 175B mandates NADRA to share its records or any other information available or held by it, on its own motion or upon application by the Board.

    Sub-section (2) thereof allows NADRA to compute indicative income and tax liability on the basis of various expenses, receipts, assets, properties and liabilities etc. using artificial intelligence, mathematical or statistical modeling or any modern methods.

    The FBR may forward such information to the concerned tax authorities having jurisdiction in connection to the subject matter relating to the information, who may utilize the information for the purpose of levy of tax.

    The indicative income and tax liability shall be communicated to the person to whom it relates. Such person shall have the option to pay tax as prescribed. In case of failure to pay such liability within stipulated

    timeframe, the tax authority shall take action under the provisions of the Ordinance on the basis of the Indicative Income so computed.

    If the person against whom the liability has been determined under sub-section (4) of the newly inserted section pays such liability, such payment shall be construed to be an amended assessment order under section 120 or 122(1) or 122(4) as the case may be.

    Board is also vested with the powers to make rules for the purposes of subsections (4) and (5) to prescribe the extent of installments, and any relief regarding the penalty and default surcharge, and time limits.

    To provide an enabling environment for the joint mechanism the restrictions on provision of information in terms of section 198 have been done away with and the said section is now omitted.

    FBR not to ask source of remittances sent through ECs
  • FBR rebuts currency smuggling to Afghanistan

    FBR rebuts currency smuggling to Afghanistan

    ISLAMABAD: Federal Board of Revenue (FBR) strongly rebutted the reports of currency smuggling from Pakistan to Afghanistan.

    In a statement issued on Friday, the FBR categorically rebutted the unfounded, malicious intent and misleading in content propaganda being advanced by some irresponsible elements that there was a huge flight of dollars from Pakistan.

    It is further clarified that previously the bilateral trade between Pakistan and Afghanistan was carried out in US Dollars but now the same is being conducted in Pak Rupees (PKR).

    Furthermore, FBR has taken very stringent enforcement measures at the Airports to eliminate the possibility of any such an unethical practice.

    Pakistan Customs has made it mandatory for all passengers flying out of the country to undergo thorough personal scrutiny and 100 per cent declaration of currency through an automated process in order to ward off this nefarious illegal activity. This leaves the little possibility of the subject undesirable practice.

    It is most likely that Chairman FBR and Member (Customs Operations) will visit the Pak-Afghan border to oversee the functioning of the above mechanism on the ground.

    It is further reiterated that this transparent and efficient mechanism being adopted at all the airports across Pakistan is facilitating the smooth and easy movement of outbound passengers, thus significantly reducing their time and cost. 

    Draft rules issued for Uzbekistan-Pakistan transit trade