The Federal Board of Revenue (FBR) has said that maintaining transactions details over Rs10,000 has been made mandatory for wholesalers, distributors, dealers, and commission agents.
(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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Six years mandatory period for maintaining record under income from business
The Federal Board of Revenue (FBR) has introduced updated regulations pertaining to six years maintaining books of accounts, documents, and records for taxpayers deriving income from business.
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FBR notifies rules for advance ruling
In a bid to enhance transparency and provide clarity in customs matters, the Federal Board of Revenue (FBR) has notified the rules for issuing advance rulings.
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Committee advised to simplify procedure ensure collection transparency
Dr. Abdul Hafeez Shaikh, the Adviser to the Prime Minister on Finance and Revenue, presided over a virtual meeting of the Federal Board of Revenue (FBR) Technical Committee on Friday. The primary focus of the meeting was to streamline and simplify procedures within the FBR, ensuring clarity and transparency in the process of revenue collection.
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Rate of tax on payment through debt, credit cards
The Federal Board of Revenue (FBR) has announced updates to the rate of income tax applicable to payments made abroad through credit or debit cards during the tax year 2021 (July 01, 2020, to June 30, 2021).
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Jazz pays Rs5 billion income tax liability on court order
ISLAMABAD: Pakistan Mobile Communication Limited (PMCL) – the operator of Mobilink / Jazz on Thursday paid an amount of Rs5 billion out of total Rs22 billion as tax demand created by Large Taxpayers Office (LTO) Islamabad.
The payment has been made as per the directions of Islamabad High Court (IHC) order in Income Tax reference No. 32/2020 dated November 10, 2020.
Earlier, the IHC allowed PMCL to deposit an amount of Rs5 billion against income tax liability.
A division bench of the IHC in a hearing on November 10, 2020 granted the application of the petitioner i.e. PMCL to deposit Rs5 billion. The high court also granted interim relief to the petitioner and suspended notices sent to the applicant under Section 140 of the Income Tax Ordinance, till the next date of hearing i.e. December 02, 2020.
During the proceedings the counsel for the petitioner submitted that the petitioner was willing and ready to pay a sum of Rs5 billion.
The counsel for the Federal Board of Revenue (FBR) submitted that the sum offered to be deposited by the petitioner was meager as compared to the total liability. The counsel submitted that the applicant is liable to pay a sum of Rs22 billion plus penalty etc.
The LTO Islamabad last month initiated tax recovery of Rs25 billion from M/s. PMCL by sealing of its business premises.
The LTO Islamabad took the action against the mobile operator as income tax amount Rs25.39 billion was outstanding against the defaulter.
“The defaulter is refraining itself deliberately, dishonestly and without lawful excuse to discharge tax liability and thus causing huge loss to the national exchequer,” according to a notice of LTO Islamabad.
While responding to the report, the PMCL issued the following statement:
“Jazz is a law-abiding and responsible corporate citizen. Our contribution to Pakistan’s economy over the past 25 years is significant.
“We have received a notice from FBR this afternoon. Jazz has made tax submissions based on legal interpretations of the tax owed. We will review and take measures under our legal obligations and will collaborate with all concerned institutions for an early resolution of this issue.”
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FBR issues TORs for probing complaints against IR, Customs officials
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued Terms of Reference (TORs) for processing of complaints and launch probe against officials of Inland Revenue and Pakistan Customs.
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Capital Gain Tax: investors require maintaining accounts, records separately
ISLAMABAD: Federal Board of Revenue (FBR) has said that every investor of stock exchange shall maintain accounts and records separately for each of his brokerage accounts regarding payment of capital gain tax (CGT).
The FBR officials on Thursday said that the record shall be maintained in a way which sufficiently enable for verification of discharge of his obligations under these rules.
Every investor shall maintain in particular the following accounts and records, namely:-
(a) fortnightly ledger statements of the investor’s brokerage account or each brokerage account if there are more than one account whether in the investor’s own name or any benami accounts, generated by his broker;
(b) fortnightly CDC statements of the investor’s CDC sub account or each CDC sub account corresponding to each brokerage account, if there are more than one brokerage account whether held in the investor’s own name or any benami accounts;
(c) record of security holdings and their value carried in the investor’s brokerage account on 30th June of each year;
(d) record of cash carried in the investor’s brokerage account as on 30th June of each year;
(e) record of funds deposited in the investor’s brokerage account; and
(f) record of funds withdrawn from the investors brokerage account.
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FBR connects with NADRA system to identify potential taxpayers
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday signed a Memorandum of Understanding (MoU) with National Database Regulatory Authority (NADRA) to verify persons’ identity directly.
A statement issued by the FBR said that on the directives of the Prime Minister to facilitate taxpayers the MoU had been signed to directly verify CNIC and other relevant documents.
A FBR spokesman said that the connectivity would facilitate taxpayers as this would automatically feed tax refund data into withholding statements and tax returns.
Further, it will reduce timing to comply with relevant laws, the spokesman added.
The FBR hoped that this connectivity would also help the tax authorities to connect with other organizations.
The connectivity with NADRA will help the FBR to identify such individuals who are out of tax net and concealing their incomes and assets, the spokesman said.
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FBR sets up body to regulate jewelers, real estate agents
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday approved a body to regulate transactions by jewelers, real estate agents and accountants under anti-money laundering (AML)/Counter Financing of Terrorism (CFT) laws.
According to an office order, the FBR approved the operationalization of Directorate General of Designated Non-Financial Business and Professions (DNFBPs), with its headquarter at Islamabad within the existing sanctioned strength and budget grant of FBR with immediate effect.
The Designated Non-Financial Businesses and Professions (DNFBPs) are real estate agents, jewelers and accountants.
The FBR issued SRO 924(I)/2020 dated September 30, 2020 related to DNFBPs to comply with conditions under Finance Action Task Force (FAFT).
Under the latest office order, the FBR sets up field formations at Islamabad, Quetta, Gilgit-Baltistan, Lahore and Karachi.
The FBR has assigned additional responsibilities to customs and Inland Revenue officials to operate the Directorate General of DNFBPs.
Dr. Bashirullah Khan (IRS/BS-20) has been assigned additional responsibility of Director General, Directorate General of DNFBPs.
Other officials who have been given additional charge as Director of Directorate General of DNFBPs are included: Asem Iftekhar, (IRS/BS-20) Karachi, Zafar Iqbal Khan (IRS/BS-20) Islamabad, Irfan Javed (PCS/BS-20), Quetta, Rashid Habib Khan (PCS/BS-20) Gilgit Baltistan, Ahmad Kamal (IRS/BS-20) Lahore and Muhammad Tahir (PCS/BS-19) Director (HQ) DNFBPs Islamabad.
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