Section 28 of Income Tax Ordinance, 2001 has allowed expenses to taxpayers against profit on debt to the extent used in business purpose.
(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.
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FBR collects Rs410 billion; highest ever in July
ISLAMABAD: Federal Board of Revenue (FBR) has posted a robust growth of 48 per cent in the first month of the fiscal year 2021/2022. The collection in July 2021 is the highest collection in the same month of any past year.
The tax collection target for the fiscal year has been set at Rs5,829 billion.
The FBR has provisionally collected Rs410 billion in July 2021 as compared with Rs277.3 billion in the same month of the last year.
The FBR also surpassed the revenue collection target of Rs342 billion set for the month of July 2021.
Prime Minister Imran Khan commended the performance of the FBR in a tweet message. “I commend the efforts of FBR in achieving record revenue collection in July. As of now collection is Rs410 billion which is highest ever in the month of July and around 22 per cent above required target for the month,” the prime minister said.
The prime minister said the revenue collection performance is a reflection of the government’s policies for sustained economic growth and revival.
The provisional collection showed all the heads have recorded significant growth. The FBR collected Rs190 billion as sales tax, Rs135 billion as income tax, Rs22 billion as federal excise and Rs63 billion as customs duty during July 2021.
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Expenses on employee training allowed tax adjustment
In a move to incentivize investment in employee development and welfare, Section 27 of the Income Tax Ordinance, 2001 allows for the adjustment of expenses incurred on employee training and facilities.
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FBR not to extend last date for filing tax return
Federal Board of Revenue (FBR) will not extend the last date for filing income tax returns, this was stated by Sardar Ali Khawaja, Chief Commissioner Inland Revenue at the Regional Tax Office (RTO) in Peshawar.
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Tax rates on usage of telephone and internet
The Federal Board of Revenue (FBR) collects withholding income tax on telephone and internet usage under Section 236 of Income Tax Ordinance, 2001.
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Expenses on scientific research against tax liability
Section 26 of the Income Tax Ordinance, 2001, provides a significant incentive for businesses in Pakistan. The Federal Board of Revenue (FBR) has incorporated this provision, updated up to June 30, 2021, through the Finance Act, 2021, encouraging businesses to engage in scientific research.
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Tax treatment of pre-commencement expenditure
Section 25 of the Income Tax Ordinance, 2001 provides a valuable tax benefit by allowing deductions for pre-commencement expenditure.
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FBR launches single identifier number for all taxes
ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a single identifier number for all domestic taxes.
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Senior tax auditor awarded ‘dismissal from service’
ISLAMABAD: Federal Board of Revenue (FBR) has imposed major penalty of ‘dismissal from service’ upon a senior tax auditor for misconduct.
Syed Ali Hussain, Senior Auditor (BS-16), Large Taxpayers Office, has been removed from service for absence from office without authorized leave.
According to an office order issued on Wednesday, the FBR said disciplinary proceedings were initiated against Syed Ali Hussain, Senior Auditor (BS-16), Large Taxpayers Office, Lahore under Government Servants (Efficiency & Discipline), Rules 1973 on charges of “Misconduct” in terms of Rule 3(b) ibid.
The Chief Commissioner, Large Taxpayers Office, Lahore being Authorized officer appointed Dr. Muhammad Sarmad Qureshi, then Commissioner-IR, (Legal Zone) Large Taxpayers Office, Lahore as Inquiry Officer. Charge Sheet and Statement of Allegations were issued on 01.02.2021 on following charges:
i. Syed Ali Hussain, Senior Auditor, Large Taxpayers Office, Lahore (the then Large Taxpayers Unit, Lahore) was allowed casual leave for 5 days from 05.11.2018 to 09.11.2018 and he was due in office on 12.11.20108 after the weekly holidays on Saturday and Sunday i.e. 10th and 11th November, 2018. As such he is absent from duty since 12.11.2018.
ii. He willfully travelled outside Pakistan frequently without prior approval and sanction of ex-Pakistan leave from the Competent Authority during the period.
iii. Passport No. JR5159161 was issued to him on 27th July, 2016 showing his profession as “Government Employee” but he applied on 18th October, 2018 for the modification of his passport, on the basis of production of fake resignation letter at the time of interview and willfully got a modified passport bearing No. JR5159162 showing his profession as “Other”.
iv. He sent an application through Mr. Atif Noor on 25th April, 2019 requesting for leave for 4 weeks alongwith OPD slip dated 25th April, 2019 showing that he was examined by the Medical Officer of Sir Ganga Ram Hospital, Lahore who recommended complete bed rest for 4 weeks whereas Syed Ali Hussain was out of Pakistan on 25th April, 2019.
In spite of proper service of Charge Sheet and Statement of Allegations sent through UMS followed by final hearing notice sent through UMS and service by hand upon his brother namely Syed SajjadHaider s/o Syed Mehboob Ali CNIC 35202-2414918-1 at House No. 1-A, Qureshi Street No. 44, Sanda Kalan, Lahore on 09.03.2021 which was also affix at the same premises, the accused failed to respond.
Keeping in view the constant non-compliance from accused, a Show Cause Notice dated 17.03.2021 and the corrigendum was published in the “Daily Pakistan”& “Business Recorder” dated 16.04.2021 and 25.04.2021 respectively. In absence of any defence the inquiry officer concluded that all charges levelled against the accused are established and submitted the inquiry report dated 08.06.2021 to the Authorized Officer.
Chief Commissioner, Large Taxpayers Office, Lahore being Authorized Officer in this case, after considering all aspect of the case was of the view that the charges of “Misconduct” against the officer stand established. The Authorized Officer i.e. Chief Commissioner, LTO Lahore therefore recommended imposition of the Major Penalty of “Dismissal from Service” upon the accused in terms of Rule 5(1)(iv) read with 4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973.
The authority i.e. (Admn/HR) FBR has imposed the Major Penalty of “Dismissal from Service” upon the accused under Rule Rule 5(1)(iv) read with 4(1)(b)(iv) of the Government Servants (Efficiency & Discipline), Rules 1973 with immediate effect. Period of absence from duty w.e.f. 12.11.2018 till dismissal shall be treated as extraordinary leave (EOL), without pay.
Syed Ali Hussain, Senior Auditor (BS-16), shall have right of appeal to the appellate Authority under Civil Servants (Appeal) Rules, 1977 within a period of thirty (30) days from the date of communication of this notification / order.
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Tax exemption allowed on import of 30 million face masks
In a proactive move to support the ongoing efforts in the fight against the COVID-19 pandemic, the Federal Board of Revenue (FBR) has granted a significant tax exemption on the import of 30 million face masks.
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