The Federal Board of Revenue (FBR) has announced a strategic move to upgrade its technology infrastructure, necessitating a temporary shutdown of its website for four hours daily until August 30, 2021.
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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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Tax rates on purchase of motor car during 2021-2022
The Federal Board of Revenue (FBR) in Pakistan has released the updated rates of withholding tax on the purchase of motor cars for the fiscal year 2021-2022.
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FBR’s appeal in bogus sales tax refunds rejected
An appeal of the Federal Board of Revenue (FBR) has been rejected by the President of Pakistan in issuance of bogus refund cases.
President Dr Arif Alvi on Sunday disposed of 42 representations of the FBR in cases of bogus sales tax invoices, worth over Rs 1.2 billion.
The FBR had filed the representations with the President of Pakistan assailing the orders of the Federal Tax Ombudsman (FTO) passed in suo moto cases, in which bogus sales tax refunds were reimbursed fully or partially by the delinquent officials of the FBR to the fake claimants.
The huge scam was unearthed by FBR’s Directorate General Intelligence & Investigation-Inland Revenue and the Red Alerts were issued to the concerned field formations. However, no action was initiated against the FBR officials and the fake claimants.
The FTO on taking suo moto notice of the matter had issued directions to the FBR to investigate and identify the officials involved in verification of the registered persons (RPs) and initiate a disciplinary action.
In pursuance of the FTO’s recommendations and also the previous orders of the President of Pakistan passed in similar cases, the FBR constituted six fact-finding inquiry committees to deal with 130 suo moto cases relating fake refund claims.
The Terms of Reference (ToR) of the committees were meant to identify the wrong-doings and involvement of officials in each case, and fix responsibility. Also, these committees were tasked to prepare a draft charge sheet and statement of allegations with respect to each official and submit a report to the Board within 30 days.
President Alvi, in view of the findings of the committees, disposed of the representations of the FBR pertaining to the cases in which full or partial refunds were paid fraudulently.
He directed the FBR for submission of a monthly implementation report to the Federal Tax Ombudsman’s Secretariat till the completion of the action on each case.
He also ordered to afford an opportunity of show-cause and hearing to the official in case of any departmental action proposed against him, to satisfy the requirement of due process and the principles of natural justice.
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Computing profit, gains of banking companies
In a bid to ensure clarity and precision in the taxation of banking companies, Section 100A of the Income Tax Ordinance, 2001 has been introduced, providing special provisions related to banking business.
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Special tax provisions for exploration, production
The Federal Board of Revenue (FBR) has outlined critical provisions related to the exploration and production of oil, natural gas, and other minerals under Section 100 of the Income Tax Ordinance, 2001. This section, updated through the Finance Act, 2021, provides a framework for taxation specific to the energy and mining sectors, reflecting their importance to Pakistan’s economy.
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FBR rebuffs report of using pirated software
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday strongly rejected the claims of news report about using pirated software for tax system.
The FBR issued a clarification on the news aired by a leading news channel regarding use of pirated software by FBR for its systems.
The revenue body clarified that IT services for Federal and Provincial tax authorities such as FBR, SRB, PRA etc are being provided by PRAL which also includes maintaining the data centers.
In the data centers there are numerous software products which are being used to perform different functions such as cyber security, virtualization, firewall, etc.
Key companies whose products are being utilized include Oracle, Microsoft, VMware, Kaspersky etc.
FBR has clarified that the licensed versions of these softwares have been procured. FBR has added that the original license of the product remains intact, if the support to the software expires.
However, at times support for these services may not get renewed in a timely fashion due to unavoidable circumstances.
FBR has clarified that in year 2019, issue of VMware licensing was raised by US Government, which was addressed by procuring the requisite licenses after following relevant procedures as laid down in PPRA rules.
For over a year no such issue regarding VMware has cropped up, FBR added.
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Withholding tax rates on transfer of motor car ownership
The Federal Board of Revenue (FBR) in Pakistan has announced the revised rates of withholding tax applicable to the transfer of registration or ownership of motor vehicles for the fiscal year 2021/2022.
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Special tax provisions relating to various businesses
Section 99 of Income Tax Ordinance, 2001 discussed special tax provisions related to various businesses including profits and gains of any insurance business shall be computed in accordance with the rules in the Fourth Schedule.
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Treatment of deduction in change of entity control
Treatment of deduction in change of entity control has been explained under Section 98 of the Income Tax Ordinance, 2001 as it plays a significant role in addressing changes in ownership and business continuity, ensuring that the tax implications are appropriately managed.
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Self assessment scheme to facilitate taxpayers: Tarin
KARACHI: Finance Minister Shaukat Tarin on Friday said that the Universal Self Assessment Scheme (USAS) has been reintroduced. This scheme will facilitate taxpayers in declaring income and assets.
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