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KARACHI: Regional Tax Office (RTO)-II Karachi has launched crackdown against tax evaders engaged in business of car sale, purchase and service.
The Broadening of Tax Base (BTB) Zone of RTO-II Karachi has launched action against tax evaders in automobile industry including persons own automobile showrooms, auto parts dealers, sellers, automobile workshops, car service center, sources said on Saturday.
The sources said that the BTB zone conducted field survey and collected information from various survey already conducted. It was discovered that automobile showrooms, auto part dealers, sellers, automobile workshops and car service center having booming business activities but large number of them are not registered or not filing their tax returns.
The BTB unit issued notices to 312 automobile showrooms, auto parts dealers, sellers automobile workshops and car service centers doing business activity in the various areas of Karachi and they are not on tax net.
Notices under Section 176 of the Income Tax Ordinance, 2001 have been issued to bring them into the tax net.
The Federal Board of Revenue (FBR) has released detailed explanations regarding the revised implementation of the federal excise duty (FED) on ghee and cooking/edible oils, as introduced through the Finance Act, 2019.
ISLAMABAD: Federal Board of Revenue (FBR) has extended the last date for filing income tax returns for tax year 218 up to August 09, 2019.
The FBR on Friday issued Circular No. 09 for extension in date of filing of income tax returns/statements for tax year 2018.
The FBR announced to further extend the last date for filing income tax returns and statements for tax year 2018 for salaried persons, business individuals, Association of Persons and Companies up to August 09, 2019.
The previous extended date for filing income tax returns was August 02, 2019.
ISLAMABAD: Federal Board of Revenue (FBR) has issued withholding tax rate on rental income of immovable properties, which are applicable from July 01, 2019.
The FBR issued withholding tax card for tax year starting July 01, 2019, and said that every prescribed persons (withholding agents) shall collect withholding tax under Section 155 of Income Tax Ordinance, 2001 at the time of receipt of rent of immovable property at the time the rent is actually paid.
The FBR said that the tax shall be adjustable. The withholding tax shall be deducted at the following rates:
A. In case of individual or Association of Persons (AOPs)
1. Where the gross amount of rent does not exceed Rs, 200,000: No tax shall be deducted.
2. Where the gross amount of rent exceeds Rs, 200,000 but does not exceed Rs, 600,000: 5% of the gross amount exceeding Rs, 200,000
3. Where the gross amount of rent exceeds Rs, 600,000 but does not exceed Rs, 1,000,000: Rs, 20,000+10% of the gross amount exceeding Rs, 600,000.
4. Where the gross amount of rent exceeds Rs, 1,000,000 but does not exceed Rs, 2,000,000: Rs,60,000+15% of the gross amount exceeding Rs, 1,000,000.
5. Where the gross amount of rent exceeds Rs, 2,000,000 but does not exceed Rs. 4,000,000: Rs, 210,000+20% of the gross amount exceeding Rs, 2,000,000.
6. Where the gross amount of rent exceeds Rs.4,000,000 but does not exceeds Rs. 6,000,000: Rs.610,000 plus 25 per cent of the gross amount exceeding Rs.4,000,000.
7. Where the gross amount of rent exceeds Rs.6,000,000 but does not exceeds Rs. 8,000,000: Rs.1,110,000 plus 30 percent of the gross amount exceeding Rs.6,000,000.
8. Where the gross amount of rent exceeds Rs.8,000,000: Rs.1,710,000 plus 35 percent of the gross amount exceeding Rs.8,000,000.
B. The FBR said that in case of company the tax rate shall be 15 percent.
The FBR further explained that as per Finance Act, 2019, the provisions of newly inserted 10th schedule of the Income Tax Ordinance, 2001 shall not apply on tax rental income deducted under section 155.
ISLAMABAD: Federal Board of Revenue (FBR) has issued simplified tax return and wealth statement forms for traders in order to resolve problems of traders regarding tax compliance.
The FBR on Thursday issued draft simplified scheme for traders and stated that the scheme has been prepared after having practical research and discussion on the subject and exclusive interaction with the trade bodies.
It has been observed that traders’ genuine problems regarding tax compliance have to be addressed. The issues which are considered compelling by all the stakeholders are:-
(i) Complicated tax regime and equally complicated requirement of record keeping;
(ii) Complicated return form and wealth statement;
(iii) Personal interaction and personalized jurisdiction that has high probability of abuse of discretion even leading to corruption and harassment;
(iv) Complicated requirements for compliance such as withholding etc
In the proposed scheme all the four major concerns have been addressed.
Proposals from stakeholders as well as general public are invited for any modification in the above scheme. After public review the scheme will be put before the Federal Cabinet for final approval. It is expected that this reformed simplified procedure will be a new beginning on this subject.
INCOME TAX SPECIAL PROCEDURE FOR TRADERS
1. Scope and commencement.—(1) Subject to Rule 2 and 4, this procedure shall apply to traders including retailers and wholesalers who may opt to file Return under scheme. The procedure shall come into force with effect from Tax Year 2019
2. Persons covered.- For the purposes of this scheme a trader including retailer and wholesaler shall be an individual or association of persons carrying on business of buying and supplying goods to the general public or other businesses for the purpose of consumption, and has (a) turnover less than Rs 50 million;
(b) self-invested equity less than Rs 50 million;
(c ) cost of fixed assets less than Rs 100 million;
(d) number of employees less than or equal to five;
but does not include persons covered under small shopkeepers scheme under section 99B of the Ordinance.
The thresholds as prescribed shall be increased by ten percent each year to account for economic progression in business. The Federal Government shall prescribe the maximum limit when a person under this scheme shall be required to observe general provisions of the Ordinance.
This scheme shall only be applicable for persons resident in Pakistan.
Accounting Method and Computation of Income.- (1) A person accounting for income under the head business opting under this scheme shall derive income when it is received and shall incur expenditure when it is paid on cash basis connected with business. The excess of receipts over expenditure shall be considered as income liable to tax except for the adjustment of opening and closing stocks on a consistent basis if the taxpayer so desires for such an adjustment.
(2) Section 21 shall not apply in such cases except clause (n).
Registration and Filing of Return.- (1) All persons who are not already registered with FBR will be registered under this scheme shall submit the registration form on IRIS through FBR website.
(2) Person who holds NTN but has not filed Return in preceding five tax years may also submit registration form.
(3) Each person falling under this scheme shall electronically file a simplified Return of income accompanied with evidence of payment of due tax and simplified wealth statement. Such return filed shall be treated as assessment order under section 120 for the purposes of the Ordinance.
(4) All persons opting for under this scheme shall be required to file Return by September 30, 2019.
(5) Return and Wealth Statement filed may be revised without approval of CIR within sixty days.
Automated and Non-Jurisdictional system.- (1) There shall be national (central) jurisdiction in respect of persons falling under this scheme.
(2) All persons falling under this scheme shall be communicated through prescribed automated system.
Tax Rate and Payment of Tax.- (1) Income computed under Rule 3 shall be chargeable to under the head ‘Income from Business’ and tax payable thereon shall be computed at the rate prescribed under Division I, Part I of the First Schedule to the Ordinance.
(2) In case of loss for the year or tax liability less than one and half percent of turnover, minimum tax equal to one and half percent of receipts shall be payable.
(3) Tax paid under any provision of the Ordinance shall be minimum tax.
(4) An association of persons shall be liable to tax separately from the members of the association. The amount received by a member of the association in the capacity as member out of the income of the association shall be exempt from tax.
Examination of Return.- (1) Examination of assessment under this scheme shall be limited to activities and purposes within this scheme. The process, procedure and reporting of examination shall be prescribed.
(2) Where a person in respect of income is selected for examination under this scheme, the process of examination shall be undertaken not allowing any personal visit by any tax authority to the premises of the taxpayer, except with the approval of Federal Board of Revenue.
(3) No examination shall be undertaken after the expiry of five years from the date of filing the Return for that tax year.
(4) Definite Information: Where definite information regarding concealment of income or evasion of tax is available as defined under sub section (8) of Section 122 of the Ordinance, particular examination of the taxpayer may be undertaken, notwithstanding the provisions of this scheme. 5) No action under this Section will be undertaken prior to the approval of a Committee constituted by FBR consisting of three persons including a member of trade body not being the employee of the Government.
Dispute Resolution and Appeals.- (1) Where a person is dissatisfied with examination conducted, the matter shall be referred to dispute resolution committee to be formed under this scheme.
(2) The decision of dispute resolution Committee shall be binding on Federal Board of Revenue and not on the taxpayer;
(3) Person dissatisfied with examination conducted or decision of the DRC can file appeal under section 127 of the Income Tax Ordinance, 2001 after payment of 25 percent of tax payable.
(4) Provisions of Par III of Chapter VIII shall remain applicable on cases where there is a dispute on account of examination as undertaken under this scheme.
Withholding Agent.- (1) Person falling under this scheme shall not be required to act as withholding agent under any provision of the Ordinance.
Advance Tax.- Any person falling under this scheme may at its own option pay advance tax equal to one fourth of the tax liability as per last tax year in four equal installments.
Books of Accounts.- Persons falling under scheme shall keep and maintain books of accounts. The cash and bank book so maintained shall be the only ‘Books of Accounts’ required to be kept by the persons falling under this scheme for the purposes of compliance of this Ordinance.
Miscellaneous Provisions.- Source of self-invested equity for any earlier year shall be accepted.
Income under any other head shall be taxable under relevant provisions of the Ordinance.
For the purpose of collection and recovery of tax, provisions of Part IV of Chapter X shall apply.
Provisions of Section 182 and Section 205 shall apply accordingly.
The information disclosed by whistleblower shall be dealt in accordance with section 227B of the Ordinance.
The Federal Government may, from time to time, by notification in the official Gazette, amend the scheme so as to add, alter, omit or modify any provision therein.
Definitions.— Under this scheme, unless there is anything repugnant in the subject or context,—
(1) “Books of Accounts” means the prescribed cash/bank book containing all entries in respect of monies received and paid including those directly entered into bank account.
(2) “Fixed Assets” means under this scheme, property of any kind connected with business held by a person but does not include stock-in-trade.
(3) “Self-invested Equity” means personal funds invested in trade/business other than accumulated profits.
(4) “Turn over” means receipts from the sale of goods.
(5) All other expressions used but not defined in these rules shall have the same meaning as assigned to them under the Income Tax Ordinance, 2001.
RETURN OF INCOME UNDER RULE 4 OF THE TRADERS SCHEME
Form A
CNIC/NTN
Tax Year
Name*
Due Date
Address*
Business Assets
Filing Date
Employees
Equity/Capital
Description
Total Amount
1.
Turnover/Receipts
2.
Cost of Sales
3.
Opening Stock
4.
Purchases
5.
Closing Stock
6.
Other direct Expenses
7.
Gross Profit
8.
Overhead expenditure
9.
Net Profit/ Taxable income
10.
Income from all others sources
11.
Tax chargeable
12.
Minimum Tax
13.
Tax payable whichever is higher
14.
Tax already Paid
15.
Net tax payable/refundable
15.
Bank Account #
Verification
I Mr._____________ holding CNIC ______________do solemnly declare that to the best of my knowledge and belief the information given in this Return is correct and complete in accordance with the provisions of the Scheme.
Signature:
Date
WEALTH STATEMENT UNDER RULE 4 OF THE TRADERS SCHEME
Form B
S. No.
Description
CNIC/NTN
Tax Year
2019
Name
Due Date
1
Property/ Assets
2
House/Plot
3
Shop
4
Vehicle
5
Business Capital
6
Cash in hand/ Bank
7
Investment /Advance
8
Loan/liabilities
9
Net Assets
10
Reconciliation of Net Assets
11
Net Assets Current year
12
Net Assets Previous Year
13
Increase/Decrease in Assets
14
Income as per Return
15
Other inflows (Gift, Loan, remittance etc)
16
Outflows (Gift, Loan etc)
17
Personal Expenses
Verification
I Mr.______ holding CNIC _____
do solemnly declare that to the best of my knowledge and belief the information given in this Return is correct and complete in accordance with the provisions of the Scheme.
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued draft rules for small shopkeepers to pay income tax and file annual returns.
The FBR defined ‘Small Shopkeeper’ as an individual where the business is carried out at a premises having covered area less than 300 square feet but does not include a shopkeeper if he is engaged in the activity of a jeweler, wholesale, warehouse, real estate agent, builder and developer, doctor, lawyer, chartered accountant or any other category specified by the Board, a retailer operating as a unit of a national or international chain of stores, a retailer operating in an air-conditioned shopping mall, plaza or center, a retailer who has a credit or debit card machine, any person whose cumulative electricity bill exceeds Rs.300,000 in the immediately preceding twelve months; and any person covered under section 99C of the Income Tax Ordinance, 2001.
Tax Rate.—The tax payable on profits and gains of a shopkeeper on his income chargeable under shall, higher of,-
(a) two percent of ‘turnover’ as defined in section 113 of the Ordinance; or
(b) the amount of tax as set out in the following Table:—
Table
S. No
Area and premises
Rate of tax
Tax Year 2019
Tax Year 2020
(1)
(2)
(3)
(4)
1.
If the shop is located in area specified as category A and the shop premises in which the business activity carried out does not exceed 150 square feet
Rs. 35,000
Rs. 40,000
2.
If the shop is located in area specified as category A and the shop premises in which the business activity is carried out exceeds 150 square feet but does not exceed 300 square feet
Rs. 40,000
Rs. 50,000
3.
If the shop is located at any place other than category Aand the shop premises in which the business activity is carried out does not exceed 150 square feet
Rs. 20,000
Rs. 25,000
4.
If the shop is located at any place other than category A and the shop premises in which the business activity is carried out exceeds 150 square feet but does not exceed 300 square feet
Rs. 25,000
Rs. 30,000
For the purpose of above mentioned table, category A means an area where value of shop exceeds Rs.10, 000 per square foot as per FBR valuation table or DC rate whichever is higher as applicable.
Manner of Payment of Tax.—
(1) In case if a person opts a fixed tax regime the amount referred to in Rules 3 shall be paid in the manner laid down under Rule 9.
(2) In other case the tax under rule 3 shall be payable in two equal installments to the Commissioner—
(a) in respect of first installment on or before the 30th day of September; and
(b) in respect of second installment on or before the 31st day of December;
Provided that for tax year 2019 the shopkeeper shall have the option of paying the tax under rule 3 along with return.
Where the person opts to pay tax and furnish return under these rules, no deduction for expense, withholding credit or refund —
There shall be no audit or examination of such shopkeeper, unless so specified by the Board.
The shopkeeper shall furnish return in Form ‘A’ specified in Schedule to these rules.
The tax under rule 3 shall be paid in the State Bank of Pakistan, or authorized branches of banks and evidence in the form of a copy of computerized tax payment receipt (CPR) shall be furnished to the Commissioner by the due date as mentioned in rule 4.
On receipt of evidence of payment of tax installment, the shopkeeper shall be issued a sticker which shall be displayed by the shopkeeper at a prominent place in the business premises.
Where these rules apply—
(a) the shopkeeper shall not be required to withhold tax from any person as required under the Ordinance;
(b) the shopkeeper shall furnish return for the tax year by the due date or extended due date as specified under the Ordinance;
(c) the shopkeeper shall not be required to file wealth statement under the provision of sub-section (2) of section 116 of the Ordinance for the tax year for which return qualifies under these rules.
Where the shopkeeper has furnished return to the Commissioner under these rules—
(1) The Commissioner shall be treated to have made an assessment of the taxable income and tax payable on the tax due thereon for the tax year under the provisions of section 120 of the Ordinance;
(2) The return furnished shall be treated to be an assessment order issued by the Commissioner on the day the return was furnished under these rules and provision of section 120 of the Ordinance;
The provisions of these rules shall not apply to the shopkeeper—
(1) who fails to pay tax installments under rule 4;
(2) who fails to furnish a return for a tax year within the due date as extended period as specified under the Ordinance after having furnished a return once for any tax year under these rules provided that the shopkeeper may opt to furnish return under these rules after two tax years immediately following the tax year he failed to furnish return.
No action against any shopkeeper shall be undertaken unless the matter is taken up with the association of traders concerned after seeking approval from FBR.
The Federal Government may, from time to time, by notification in the official Gazette, make amendment in these Rules
Persons convicted under Control of Narcotics Substances Act, 1997 (XXV of 1997), Anti-Terrorism Act, 1997 (XXVII of 1997) and Anti-Money Laundering Act, 2010 (VII of 2010).
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that sales tax can only be recovered from customer if the supplier is registered for sales tax purpose.
The FBR issued Sales Tax Circular No. 02 of 2019 and said that it was observed in many cases, suppliers of goods and services were charging sales tax on invoices/ receipts without identifying their sales tax registration number (STRN) on the ‘Invoices/Receipts’ issued to the customers. At times, National Tax Number (NTN) is indicated on invoices, to exhibit that the supplier is registered.
The FBR suggested customers to ask for invoices/receipts having STRN on the invoices/receipts on purchase of goods and services. “Sales tax can only be recovered from the customer if the supplier is registered for sales tax purposes, and reflects the STRN on the invoice/receipt issued to the customer.”
In other cases, the supplier is not entitled to recover sales tax from the customers. “Customers should beware of the same.”
The FBR said many suppliers were charging sales tax from customers without getting them registered under the sales tax regime. This practice is against the law and is liable to penal action. “This practice leads to increase in prices and undue enrichment of sellers without any deposit of tax with the government,” the FBR said.
Customers are suggested to seek invoice/receipts from suppliers with STRN on the invoices/receipts issued, if sales tax is charged on their purchases.
The FBR further explained that buyer is not required to provide his NIC in case of purchases from a person not registered for sales tax.
The FBR also clarified that in case of purchase of third schedule items, which are subject to sales tax on the basis of retail price and on which retail price along with sales tax is legibly and indelibly printed or embossed, the sales tax on the same is deposited by the manufacturer or importer. “In case of such items, STRN may not be required if the same are purchased from a retailer,” the FBR said.
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued draft rules for obtaining license which is mandatory for any business, profession or vocation to display.
According to draft amendment, the FBR proposed new rules, after Chapter XIII, the following new Chapter to Income Tax Rules, 2002 shall be inserted, namely:—
“Chapter XIIIA
Obtaining and Issuance of Business License
83A. The rules in this Chapter apply for the purposes of section 181A which provides for business license scheme.
83B. Definitions.— in these rules, unless there is anything repugnant to the subject or context,—
(a) “applicant” means a person who files application for issuance of business license;
(b) “Iris” means the application software on the web portal of Federal Board of Revenue for the purposes including application for business license;
(c) “service provider” means any person whose services to provide electronic data entry into Iris or any other web based application software, bio-metric verification and delivering the print out of the business license to the applicant for the purposes of these rules, has been hired by the Federal Board of Revenue.
83C. Application for and issuance of business license.— (1) Subject to sub-rule (4), any person engaged in any business, profession or vocation, shall apply to the Federal Board of Revenue for issuance of business license in the Form specified in the schedule.
(2) Where the applicant is having a cell phone number, issued by any mobile phone company and is having access to the internet facility, he shall file application form on the Iris or any software application developed by Federal Board of Revenue for the purposes of these rules. The system generated business license issued to the applicant shall be emailed to the applicant.
(3) Where the applicant is not having any cell phone number issued by any mobile phone company or not having access to internet facility, he shall provide the particulars to the service provider or the personnel in a Kiosk established by a Regional Tax Office, for online filing of the form, and the service provider or the personnel in the Kiosk, as the case may be, shall—
(i) verify particulars of the form filled in;
(ii) complete bio-metric verification of the applicant; and
(iii) give system generated print out of the business license to the applicant;
(4) Where a person’s name is appearing in the active taxpayers’ list, he shall be treated to have filed application and the system generated business license shall be emailed to his email address registered in Iris.
83D. Display of the business license.— (1) Every person who has been issued a business license under these rules, shall display the said license at every place of business of the person.
83E. No liability on holding a business license.— Where a person has been issued a business license, he shall not be liable to payment of any tax on account of holding a business license unless such person is otherwise liable to payment of tax under any other provisions of the Income Tax Ordinance, 2001.
ISLAMABAD: Federal Board of Revenue (FBR) has removed threshold amount to purchase of immovable properties for collection of withholding tax.
The FBR issued Income Tax Circular No. 09 dated July 30, 2019 and said that through the Finance Act, 2019, the rate of tax on purchase of immovable property under Section 236K of Income Tax Ordinance, 2001 has been reduced to 1 percent from 2 percent.
Prior to the Finance Act, 2019, no tax was collected under Section 236K on purchase of property where the value of property up to Rs4 million.
“Through the Finance Act, 2019, the threshold of Rs4 million for collection of tax has been removed. Now tax on purchase of property will be collected on all transactions irrespective of the value of immovable property,” the FBR said.
The FBR said that tax under section 236C is collected from the seller or transfer at the rate of one percent of the gross amount of consideration received.
Prior to the Finance Act 2019, this tax was not collected if the property was held for a period exceeding three years.
Through the Finance Act, 2019, the period of three years has been extended to five years which means that tax under section 236C shall be collected if the immovable property is held for a period up to five years.
The FBR further explained that as per section 236W read with clause (c) of sub-section (4) of Section 111, every person responsible for registering, recording or attesting transfer of any immovable property was required to collect tax at the rate of 3 percent of the difference between the FBR value of property and the value recorded by the authority registering or attesting the transfer in cases where FBR value was greater than the recorded value.
So by paying three percent on the difference, the purchaser was not required to explain the source of difference of amount between FBR value and the recorded value.
Through Finance Act, 2019, section 236W as well as clause (c) of sub-section (4) of Section 111 have been omitted. Consequently, the purchasers are not required to explain the source of investment of property up to the FBR value of property whereas previously such purchasers were required to explain the source of investment to the extent of recorded value of property.
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued official note to streamline Anti-Benami Regime to stop white collar crimes.
The FBR said that Benami Transactions, entailing the phenomenon of Benami moveable and immoveable properties, Bank A/Cs, Luxury Vehicles, off shore investments and stocks & shares is one of the biggest economic and financial threats, currently camouflaging the rampant corruption in our society, deadly confronting Pakistan’s taxation system and practically compromising the economic viability of the country.
Due to non existence of a special Law and Rules on Benami all Anti-corruption agencies have so far failed in tracing and documenting the real/beneficial owners and criminals went scot free.
In order to combat the menace of Benami and take the spirit of accountability forward Federal Government has operationalized Benami Transaction (Prohibition), Act, 2017, which was dormant since February, 2017.
Federal Board of Revenue has been assigned the administration and implementation of this new stream of Financial Crime Investigation & Enforcement.
This office order is aimed at streamlining of newly introduced Anti-Benami Regime in Pakistan.
I. Organizational Framework: Anti Benami Regime Pakistan.
FBR, as the parent/administering department envisages two distinct streams of functions for this White Collar Crime Investigation Agency: independent Authorities and supporting Administrative Oversight.
Both streams shall co-exist, though mutually exclusive yet complementing each other. For the legal functions, to be conducted by different Anti-Benami Authorities, their operational independence is fully protected under Benami Transaction (Prohibition) Act, 2017.
However FBR’s administrative facilitation, financial support and organizational oversight are essential for sustainable field operations, development and strengthening of this newly launched regime.
Authorities
Core Functions
Support Functions
Initiating Officer (BS-18)
-Initiation of Anti-Benami Proceedings
-Attachment of Benami Properties -Inquiries and Investigations
-Filing of Reference to Adjudication Authority.
-Filing of Appeals
-Enforcement of various provisions of said Act.
-Examination and Analysis of
complaints and references by
different agencies
– Development of Research &
Analysis Cells
-Data Archiving
-Services of Notices
-Litigation Management
Approving Authority (BS-20)
-Highest Legal Authority at Anti-Benami Field formations
-Supervisory/Administrative authority at Benami Zones
-Granting approval of all major legal and Enforcement functions
-Inherent powers u/s 16
-Confiscation of benami properties
-Administrative and Financial head of Anti-Benami Zone
-Focal office for all correspondence with FBR and other Anti-Benami authorities
-Addressing genuine grievances and complaints
-Performance Management and Reporting
-Reposing officer in the cases of Initiating officers and Administrators
-Linkages with FBR portal and other economic & financial data bases
Administrator (BS-17)
-Management of Attached properties -Management of Confiscated properties
-Possession of benami properties
-Confiscation of benami properties
-Disposal of Confiscated properties
-Ware Housing in the cases of attached/confiscated movable properties
-Intelligence & Vigilance function of benami Zones
-Spear heading all enforcement activities
-Maintenance of Discipline and motivation in field workforce
Adjudicating Authorities (BS-21/22)
-Adjudication of References filed by Initiating Officers
-Inquiries and investigation
-Attachment powers
-Statutory powers to add or delete any person arrayed as accused or property labeled as benami
– Passing Confiscation Order
-Constitution of Adjudication benches
-Administration of Officers and
Employees of Adjudication Authority
-Advice to the Federal Government
on Adjudication related matters
-Development of Case Studies
-Critical References filed by Benami Zones
-Administration of justice
-Periodical Review of Law, Rules and patterns of crime
A. Authorities: Benami Transaction (Prohibition) Act, 2017 provides detailed description and powers & functions of various authorities. FBR has already notified the jurisdiction and appointment of field authorities at Islamabad, Lahore and Karachi.
In addition to their statutory functions, FBR deems it necessary to assigns field Benami authorities some support functions as well.
These support functions would help in realizing the desired results of this legislation and seamless implementation of this new regime.
B. Administrative Oversight: Director General-Anti Benami Initiative (DG- ABI)
In order to facilitate the Authorities and to ensure efficient and effective implementation of Anti-Benami law the office of DG-ABI is being raised to ensure smooth and effective implementation and enforcement of Anti-Benami Act, 2017. Without any interference in their respective legal domains, this administrative structure would provide the following support to Anti-Benami Zones.
i) DG-ABI would act as FBR’s focal office for proper implementation of Benami Transaction (Prohibition) Act, 2017. DG-ABI would act as a bridge between Anti-Benami Zones and FBR, between Zones and Adjudication Authorities and among all the Anti-Benami Zones as well.
ii) Establishment of Administrative hierarchy for the newly created Anti-benami Zones at Islamabad, Lahore and Karachi.
iii) Logistic Support, Financial Back up & autonomy and capacity building for Anti-Benami Zones.
iv) Development of uniform operational SOPs for transparent functioning of field authorities.
v) Contact point for all external agencies interacting with FBR in Benami related matters. Receipt, analysis and dissemination of benami related complaints, data, information and reference from all external Quarters.
vi) Development of linkages between Anti-benami authorities and FBR’s portal and external Data Bases. Central Data Bank on Benami.
vii) Quantitative Performance Evaluation of Anti-Benami Zones.
Qualitative Evaluation shall be made only after obtaining input from the concerned Adjudication Authority.
viii) Addressing all jurisdiction related issues in the light of FBR’s relevant notifications.
ix) Recommendations for review and amendments in Law, Rules and Procedure, covering Anti-Benami Regime
x) Personnel Management and Litigation
II. Directorate General-ABI: The Organizational structure
i) Directorate General-ABI would comprise a Director General, Director HQs and three Commissioners, Anti Benami Zones at Islamabad, Lahore and Karachi, responsible for their notified jurisdictions.
ii) Directorate General-ABI and its formations would be manned by officers of IRS and staffed by IR Department
III. Reporting Mechanism i) Administrators and Initiating Officers shall report to their respective Commissioners, Anti-Benami Zones.
ii) Commissioners, Anti Benami Zones would be independent in their Legal jurisdictions. For all administrative matters they will be reporting to DG-ABI Islamabad.
iii) DG-ABI would report to the National Coordinator for implementation of Benami Transactions (Prohibition) Act, 2017.
