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 transfers 37 Commissioners of Inland Revenue

ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday notified transfers and postings of 37 Commissioners of Inland Revenue Service (IRS) in BS-19-20 with immediate effect under further orders.

Following officers have been transferred and posted by the FBR:

01. Dr. Shahid Siddiq Bhatti (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Internal Audit (Inland Revenue), Lahore from the post of Commissioner, (Zone-VII) Corporate Regional Tax Office, Lahore.

02. Mehmood Hussain Jafari (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-VII) Corporate Regional Tax Office, Lahore from the post of Director, Directorate of Law, Lahore.

03. Dr. Muhammad Sarmad Qureshi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-IV) Corporate Regional Tax Office, Lahore from the post of Commissioner, (Zone-II) Regional Tax Office II, Lahore.

04. Imtiaz Ali Solangi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-VI) Corporate Regional Tax Office, Karachi from the post of Commissioner, (IP/TFD) Corporate Regional Tax Office, Karachi.

05. Muhammad Irfan Raza (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Large Taxpayers Unit, Lahore from the post of Director, Directorate of Internal Audit (Inland Revenue), Lahore.

06. Dr. Shah Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue Inland Revenue (Appeals), Peshawar from the post of Commissioner, (Corporate Zone) Regional Tax Office, Peshawar.

07. Ms. Shazia Abid (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-IV) Regional Tax Office II, Karachi from the post of Commissioner, (Zone-IV) Large Taxpayers Unit, Karachi.

08. Amjad Farooq (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-II) Large Taxpayers Unit, Lahore from the post of Commissioner, (Zone-III) Large Taxpayers Unit, Lahore.

09. Sajjad Taslim Azam (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Jhang Zone) Regional Tax Office, Faisalabad from the post of Commissioner, (Zonve-V) Regional Tax Office II, Lahore.

10. Muhammad Jamil Bhatti (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue Inland Revenue (Appeals-III), Lahore from the post of Commissioner, Regional Tax Office, Sialkot.

11. Ms. Hina Akram (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Regional Tax Office II, Karachi from the post of Commissioner, (Zone-II) Corporate Regional Tax Office, Karachi.

12. Ms. Farhat Qayum (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (City Zone) Regional Tax Office, Rawalpindi from the post of Director, Directorate of Internal Audit (Inland Revenue), Islamabad.

13. Adnan Inamullah Khan (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Internal Audit (Inland Revenue), Rawalpindi from the post of Commissioner, (City Zone) Regional Tax Office, Rawalpindi.

14. Muhammad Khalid Malik (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (WHT) Regional Tax Office, Sargodha from the post of Commissioner, (Lyallpur Zone) Regional Tax Office, Faisalabad.

15. Maqsood Jahangir (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-IV) Large Taxpayers Unit, Islamabad from the post of Commissioner, (Zone-IV) Corporate Regional Tax Office, Karachi.

16. Ahsan Raza Ch. (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-II) Regional Tax Office, Sargodha from the post of Commissioner, (Jhang Zone) Regional Tax Office, Faisalabad.

17. Ms. Irum Sarwar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Chenab Zone) Regional Tax Office, Faisalabad from the post of Commissioner, (WHT) Regional Tax Office, Faisalabad.

18. Muhammad Anwar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Corporate Zone) Regional Tax Office, Faisalabad from the post of Commissioner, (Zone-I) Regional Tax Office, Gujranwala.

19. Muhammad Naveed Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (HRM) Large Taxpayers Unit, Lahore from the post of Commissioner, Inland Revenue (Appeals-III), Lahore.

20. Muhammad Majid (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-II) Regional Tax Office II, Lahore from the post of Commissioner, (Zone-I) Large Taxpayers Unit, Lahore.

21. Muhammad Shaukat Hayat Cheema (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Large Taxpayers Unit,
Islamabad from the post of Commissioner, (East Zone) Regional Tax Office, Islamabad.

22. Khaliq Farooq Mian (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (WHT) Regional Tax Office, Sialkot from the post of Commissioner, (WHT) Regional Tax Office, Gujranwala.

23. Muhammad Asghar Khan Niazi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Rahim Yar Khan Zone) Regional Tax Office, Bahawalpur from the post of Commissioner, (Zone-I) Regional Tax Office, Abbottabad.

24. Dr. Muhammad Aslam Mari (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-II) Corporate Regional Tax Office, Karachi from the post of Commissioner, (Zone-I) Regional Tax Office II, Karachi.

25. Lal Muhammad Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-IV) Regional Tax Office III, Karachi from the post of Commissioner, (WHT) Regional Tax Office (RTO) II , Karachi.

26. Zafar Rafiq Siddiqui (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-V) Corporate Regional Tax Office, Karachi from the post of Commissioner, (Zone-IV) Regional Tax Office III, Karachi.

27. Ch. Javed Anwar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (WHT) Regional Tax Office, Gujranwala from the post of Commissioner, (Corporate Zone) Regional Tax Office, Faisalabad.

28. Muhammad Ali (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Regional Tax Office III, Karachi from the post of Commissioner, (Zone-II) Regional Tax Office, Sukkur. The officer will join his duties at his new place of posting w.e.f 01.09.2019. i.e. the date when Hasnain Brohi (IRS/BS-20) proceeds on Ex-Pakistan leave.

29. Muhammad Tariq Jamal Khattak (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Corporate Zone) Regional Tax Office, Peshawar from the post of Commissioner, Inland Revenue (Appeals), Peshawar.

30. Shabih-ul-Aijaz (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-III) Large Taxpayers Unit, Lahore from the post of Commissioner, (HRM) Large Taxpayers Unit, Lahore.

31. Abdul Hameed Anjum Arayn (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (WHT) Regional Tax Office II, Karachi from the post of Chief, (Legal Wing) Federal Board of Revenue (Hq), Islamabad.

32. S. Jaffar Raza Kazmi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-IV) Corporate Regional Tax Office, Karachi from the post of Commissioner, (Zone-IV) Regional Tax Office II, Karachi.

33. Jamshed Fakhri Dahir (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-III) Large Taxpayers Unit, Islamabad from the post of Commissioner, (Zone-IV) Corporate Regional Tax Office, Lahore.

34. Abdul Qadir Shaikh (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-III) Corporate Regional Tax Office, Karachi from the post of Commissioner, Inland Revenue (Appeals-II), Karachi.

35. Jibran Masroor (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-V) Regional Tax Office II, Lahore from the post of Commissioner, (WHT) Regional Tax Office, Sialkot.

36. Muhammad Aslam (Cost Accountant/BS-20) has been transferred and posted as Chief (Cost Accounting), Corporate Regional Tax Office, Lahore from the post of Chief (Cost Accounting), Regional Tax Office, Multan.

37. Asif Rasool (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue (OPS) (Sahiwal Zone) Regional Tax Office, Sahiwal from the post of Commissioner, (OPS) (IP/TFD/HRM) Regional Tax Office, Sahiwal.

The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

August 20, 2019
Officers of DG Special Initiatives given powers

ISLAMABAD: Federal Board of Revenue (FBR) has authorized powers to perform functions to the officers of the Directorate General of Special Initiatives.

The FBR issued SRO 940(I)2019 on Tuesday in this regard.

The Director General of the directorate has been given powers and authority of a Chief Commissioner Inland Revenue.

The director general has been authorized powers under Sections 176, 178, 179 of the Income Tax Ordinance, 2001.

The functions to work by the DG are:

(i) adopting innovative ways to find high net worth individuals and generate data which can readily translate into revenue.

(ii) coordination with departments of government, semi-government, local government, autonomous bodies, authorities and private bodies to find innovative avenues for generation of integrated data to generate revenue for the government.

(iii) any initiative for system based generation of revenues for FBR.

(iv) Any other initiative assigned by the Chairman FBR or Member Inland Revenue – Operations.

The FBR has also authorized powers and functions of Director, Additional Director and Deputy/Assistant Director of the Directorate.

August 20, 2019
FBR sacks senior auditor on corruption charges

ISLAMABAD: Federal Board of Revenue (FBR) has sacked a senior tax auditor on the charges of corruption and misconduct.

In an office order issued on Tuesday, the FBR said that disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against Mian Muhammad Ibrahim, Senior Auditor (BS-16) (under suspension), Regional Tax Office, Islamabad vide Charge Sheet No.2(95)/2009-IR-III dated 21.02.2017.

Tauqir Ahmad, the then Additional Commissioner, Regional Tax Office, Rawalpindi was appointed as Inquiry Officer to conduct inquiry on account of various acts of omission and commission committed by the accused officer; constituting “Misconduct” and “Corruption”.

The Inquiry Officer submitted inquiry report dated 23.10.2017 according to which the charges of “Misconduct” & “Corruption” stand established against the accused officer.

A Show Cause Notice dated 11.12.2017 was issued to the accused officer by the Authorized Officer and in response, he submitted his defence / written reply. Opportunity of personal hearing was provided to the accused officer by the Authorized Officer, which was availed on 30.10.2018.

After considering the inquiry report, reply of the accused to the Show Cause Notice and his oral submissions during the personal hearing with the Authorized Officer, the accused officer has been found guilty of “Misconduct” and “Corruption” under Rule 3(b)&(c) of the Government Servants (E&D) Rules, 1973.

Now therefore, Member (Admn), being the Authority in this case, after having considered all aspects of the case and the recommendations of the Authorized Officer has imposed major penalty of “Removal from Service” upon Mian Muhammad Ibrahim, Senior Auditor (BS-16) under Rule 4(1)(b)(iii) of the Government Servants (Efficiency & Discipline) Rules, 1973 with immediate effect.

August 20, 2019
FBR explains tax treatment on foreign controlled entity by resident Pakistani

ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday explained treatment of tax on foreign controlled entity by a resident Pakistani.

The FBR issued Circular No. 13/2019 for explaining the Section 109A of Income Tax Ordinance, 2001.

The FBR said that a new section 109A had been introduced through Finance Act, 2018, which is effective from July 01, 2018. “Return for tax year 2019 will be the first year when provision of this section will become applicable.”

This section states the taxable income of resident person shall include income attributable to a “Controlled Foreign Company.”

The FBR said that in ordinary sense, income of a foreign company owned by a Pakistani resident is taxable in Pakistan only when such income is received from the non-resident entity.

Section 109A(1) of the Ordinance is a deeming provision which essentially creates legal fiction resulting in following exceptions:

(a) Corporate veil is pierced and income of a company is deemed to be the income of controlling entity; and

(b) income is taxed in the year it is earned not when it is actually received. This is the consequence of the first action because when corporate veil is pierced the income becomes taxable when earned.

Explaining the CFC, the FBR said that in order determine that a foreign company is a controlled foreign company either of the two conditions regarding control of the resident over foreign company has to be fulfilled:

(i) more than fifty percent of the capital or voting rights of the non-resident company are held, directly or indirectly, by one or more persons resident in Pakistan; or

(ii) more than forty percent of the capital of the voting rights of the non-resident company are held, directly or indirectly, by a single resident person in Pakistan.

However, a foreign entity which fulfills either of the above condition, cannot be treated as a CFC if:

(i) the shares of the company are traded on any stock exchange recognized by law of the country or jurisdiction of which the non-resident company is resident for tax purpose;

(ii) the non-resident company derives active business income as defined under Sub-Section (3) of Section 109A; and

(iii) tax paid, after taking into account any foreign tax credits available to the non-resident company, on the income derived or accrued, during a foreign tax year, by the non-resident company to any tax authority outside Pakistan is less than sixty percent of the tax payable on the said income under the Ordinance.

The FBR further explained the concept of active business income: It said that ‘Active Income’ for the purpose of exclusion from CFC regime requires simultaneous fulfillment of two conditions:

(i) cumulative income from dividend, interest, property, capital gains, royalty, annuity payment, supply of goods or services to an associate, sale or licensing of intangibles and management, holding or investment in securities and financial assets is less than 20 percent of the total income of the said company; and

(ii) principal source of the company is under the head ‘income from business’ in the country or jurisdiction of which it is a resident.

The FBR said that the term ‘direct control’ refers to direct ownership of capital or voting right in the foreign entity. However, the term ‘indirect control’ is very wide in its connotation. “It includes indirect control by a company through subsidiary companies in which the resident person holds capital or voting rights but also includes other companies in which the resident person exercises control through ownership of capital or voting rights.”

Regarding ‘attributable income’ under Section 109A(1) of the Ordinance the FBR said that it is in the hand of resident person. The taxable income is income generated by a controlled company that should have been taxed ‘when earned’ instead of ‘when distributed.’

The attributable income of the resident person shall be determined by comparing the percentage of control (whether direct or indirect) held by the said person over the CFC.

Certain other exclusion have also been prescribed by law which are:

(i) Income of a controlled foreign company shall be treated as zero, if it is less than ten million rupees.

(ii) If direct/indirect capital or voting right held by the resident person is less than 10 percent in the foreign entity.

August 20, 2019
FBR asks banks to provide details of government securities investment

ISLAMABAD: Federal Board of Revenue (FBR) has asked banks to provide details of additional investment made into the government securities during the tax year 2019.

The sources in FBR on Tuesday said that a commissioner of Inland Revenue had been empowered to ask the banking companies to furnish details of the investment in the federal government securities so as to ascertain the applicability of enhanced rate of tax.

The FBR said that the rate of tax on taxable income of a banking company is 35 percent. “Through the Finance Act, 2019, a new rule 6C has been inserted to Seventh Schedule which provides tax rate of 37.5 percent on taxable income from federal government securities.”

As per this rule, the taxable income arising from additional income earned from additional investment in the federal government securities for the tax year 2020 and onwards shall be taxed at the rate of 37.5 percent.

“A banking company shall furnish a certificate from external auditor along with accounts while e-filing return of income certifying the amount of money invested in the federal government securities in the preceding tax year, additional investments made for the tax year and mark-up income earned from the additional investment for the tax year.”

The FBR defines ‘additional income earned’ as to mean mark-up income earned from additional investment in the federal government securities by the bank for the tax year.

The FBR also defines the term ‘additional investment’ as to mean average investment made in the federal government securities by the bank during the tax year, in addition to average investment held during the tax year 2019.

As per sub-rule (3) of the rule 6C, the Commission may require the banking company to furnish details of the investment in the federal government securities so as the ascertain the applicability of enhanced rate of tax.

August 20, 2019
Non-ATL commission agents to pay up to 24 percent withholding tax

ISLAMABAD: Federal Board of Revenue (FBR) has said that commission agents not appearing on Active Taxpayers List (ATL) shall pay 24 percent withholding tax during tax year 2019/2020 effective from July 01, 2019.

The FBR issued Withholding Tax Card for tax year 2019/2020 saying that the collection of withholding tax is payable under Section 233 of Income Tax Ordinance, 2001.

The revenue body said that Federal Government, Provincial Government, Local authority, Company AOP constituted by or under any law or principal shall collect withholding tax from recipient of brokerage or commission or agent at the time the brokerage or commission is actually paid.

The following rates shall be applicable:

(i) Advertising Agents, the tax rate shall be 10 percent for compliant taxpayers and 20 percent for persons not appearing on ATL.

(ii) Life insurance agents where commission received is less than 0.5 million per annum, the tax rate shall be 8 percent for compliant taxpayers and 16 percent for persons not appearing on ATL.

(iii) Persons not covered in (i) & (ii), the tax rate shall be 12 percent for compliant taxpayers and 24 percent for persons not appearing on ATL.

August 18, 2019
FBR starts verifying imported goods in spot checking of markets, shopping plazas

ISLAMABAD: Federal Board of Revenue (FBR) has decided to launch mega crackdown against smuggled goods and in this regard joint teams of the revenue body will visit markets and shopping plazas in major cities of the country from September 01, 2019.

The FBR on Saturday issued a notification related to anti-smuggling drive, which highlighted the adverse impact of smuggled goods on the economy in general and industrial activities in particular.

The FBR said that it had started phased program, which included verification of imported documents of foreign goods available in the market.

“With effect from September 01, 2019 special joint teams of the FBR may be visiting major shopping areas especially large retailers in major cities to check the import documents the imported goods available for sale to ensure compliance to various requirement of the law,” it said.

The FBR clarified that such checking would not be called ‘raid’. “All teams will be conducting respective identification as being officially designated and the team will be headed by a senior person.”

It further said that in case a retailer/shopkeeper had not documents at the time of checking then the team would provide adequate opportunity to submit the document in respective offices/shops after reasonable time.

The FBR said that all relevant persons are expected to cooperate with the FBR personnel during this exercise which is being undertaken to ensure compliance of laws and discourage sale of smuggled goods.

The FBR asked Member Customs (Operations) and Member (IR-Operations) to supervise the activity and provide complete assistance to the joint team wherever required.

The FBR also directed Director General (I&I) and Director General (I&I) Inland Revenue to constitute joint teams under intimation to this office and concerned Member Operations keeping in view the scope of the activity on countrywide basis.

August 17, 2019
Karachi traders criticize FBR for not including in consultative committee

Traders associations from Karachi have strongly criticized the Federal Board of Revenue (FBR) for excluding representatives of small traders and shopkeepers from Pakistan’s commercial capital in its newly formed consultative committee on the fixed tax scheme.
(more…)

August 17, 2019
FBR constitutes consultative committee for fixed tax scheme

ISLAMABAD: The chairman of Federal Board of Revenue (FBR) on Friday constituted a committee to finalize fixed tax scheme and simplified tax procedure for traders.

The committee has been constituted comprising following members:

01. Ms. Nausheen Amjad, Member (TPA) – Convener

02. Faheem ul Haq, Member, Accounting

03. Ms. Seema Shakeel, Member (IR-Operations)

04. Dr. Hamid Ateeq Sarwar, Member (IR-Policy)

05. Ashfaque Tola, Chartered Accountant

06. Abid Shaban, Advocate

07. Naeem Mir, All Pakistan Anjuman-e-Tajiran

08. Khawaja Sulaiman Siddique, Tanzeem-e-Tajran Pakistan

09. Malik Khalid, Qaumi Tajir Ittehad, Pakistan

10. Mohammad Ali Mian, Pakistan Traders Alliance

11. Ashraf Bhatti, Anjuman-e-Tajran (Bhatti Group)

12. Kashif Chaudhry, Tanzeem-e-Tajran Pakistan.

The FBR said that the committee would discuss the various aspects of the draft of fixed tax scheme for small traders / shopkeepers and simplified tax procedure for traders and shall come up with finalization of the same in the present or amended form after through discussion and consultation.

Member (IR-Policy), FBR shall act as secretary to the committee.

The committee shall submit its recommendations not later than August 25, 2019 to the office of the chairman FBR.

Related Post

FBR issues simplified draft return, wealth statement forms for traders

August 17, 2019
FBR further extends date for filing sales tax, FE returns

ISLAMABAD: Federal Board of Revenue (FBR) on Friday extended the last date for filing sales tax and federal excise (FE) return for the tax period of July 2019.

Previously the FBR extended the date for filing sales tax and federal excise return on August 09 considering the Eid holidays.

As per the latest notification, the FBR further extended the date for filing and said that the annexures of sales and purchases, which are due on August 10, 2019 can be submitted up to August 19, 2019.

The FBR said that payment of sales tax and federal excise duty, which is due on August 15, 2019 can be made up to August 21, 2019.

Similarly, the date for submitting sales tax and federal excise return, which is due on August 18, 2019, has been extended up to August 23, 2019.
The FBR said that the date has been extended considering the Eid holidays.

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FBR extends date for filing sales tax, federal excise return

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