Tag: Federal Board of Revenue

KARACHI: Federal Board of Revenue (FBR) has warned the owners of luxury motor vehicles of harsh punishment in case they are remained non compliant and failed to declare these vehicles under Asset Declaration Scheme.

In this regard the Regional Tax Office (RTO)-II Karachi has obtained details of 13,193 luxury vehicles from Excise and Taxation department Sindh.

The owners of such vehicles have been living luxurious life without paying due taxes. The break up is under: Hilux/Vigo 9230; Land Cruisers 1605; Prado 1970; Audi 45; Mercedes Benz 272; and BMW 71.

The owners have been informed by the RTO-II regarding the opportunity provided by Assets Declaration Ordinance 2019 to disclose such vehicles and other undeclared or Benami Assets by the June , 2019 to avoid confiscation and imprisonment up to seven years.

KARACHI: People will find no place to conceal their untaxed money from next month as Federal Board of Revenue (FBR) planned a comprehensive plan to bring all taxable income into tax net, Badaruddin Ahmad Qureshi, Chief Commissioner Inland Revenue (CCIR), Regional Tax Office (RTO)-II, Karachi at a press conference on Thursday.

He said that FBR had gathered information of people having taxable income through various sources including transactions of immovable properties, motor vehicle registrations, banking transactions, air travel, education fee etc.

He further said that the information of Pakistanis, having offshore investments on which tax was not paid, had also received.

Further, the Benami law, which was passed by the Parliament in 2017 and the FBR issued rules in February 2019, is also in vogue.

So in this scenario a person will not able to hide his illegal money or assets in future, the chief commissioner added.

Qureshi said that the present Asset Declaration Scheme was introduced in this background as the government wanted to give last chance to people having illegal money and assets to declare at nominal tax rates before launching stern action.

The CCIR said that the declaration scheme would end by June 30 and there would be no further extension.

“This is the last chance. People should avail this opportunity. The FBR will launch drive against tax evaders from July 01,” he added.

He said that the RTO-II Karachi had also collected information from various sources and one of those were details of luxury motor vehicles.

“There are 13,000 motor vehicles of 2400CC engine capacity in the city and their owners are not on the tax roll,” the chief commissioner said, adding that those persons would be served notices from July 01, 2019 and tax authorities would compel them to file their return and pay duty and taxes besides declaring their assets.

To a question about the progress of amnesty scheme, he said that the response was slow but historically people avail opportunity on the last dates, he said and hoped large number of declaration would be received.

ISLAMABAD: Federal Board of Revenue (FBR) has outlined course of action in scenario of post July 01, 2019 and some of motives are visible in the Finance Bill 2019.

In a statement issued on Thursday, the FBR said that the primary objective of the government is to improve confidence/trust level between the taxpayer and the tax department.

For that purpose some steps have already been undertaken which have been duly appreciated by the taxpayers.

“However, major corrective actions will be taken from July 1, 2019. Tone and purpose (for the same) have been identified in the Finance Bill 2019 and others will be disseminated in the procedures, circulars and the administrative reforms which will be made in the Federal Board of Revenue post-July 1, 2019.”

The primary theme of these actions is:

a) Automation of business process

b) Lack of personal interaction

c) Minimal possibility of abuse of powers and discretion by the tax authority

In this process the first step being ‘Return Filing’ and the ‘Sales Tax Registration’, being automated without any personal intervention/interaction.

The FBR said that in the Finance Bill, 2019 it has been ensured that the functions of ‘Audit’ which should an exception on risk-based criterion, and not a norm, shall be undertaken by a person different from the persons involved in enforcement.

Accordingly, the process of audit and enforcement will be segregated in due course. This is a major redressal, the FBR said.

Furthermore detailed explanatory circulars will be issued that there should not be any possibility of abuse of section 122(5A) of the Income Tax Ordinance, 2001 and any other similar provisions in the relevant statutes.

“It is also being ensured that first appeal stage be completely divorced from enforcement function.”

Furthermore, the government is fully committed to ensure the concept of ‘Self Assessment Procedure’ in the true spirit and relevant steps are being undertaken to ensure that there is no possibility of harassment of the taxpayers.

It is reiterated that the primary objective of the government is to create the confidence/trust amongst the honorable taxpayers. “It will be ensured that same actions materialize and concrete visible results are apparent. “

On the other side, in the past tax efforts of the tax department were concentrated on the ‘Information Furnished’ by the taxpayers and there was not sufficient/independent ‘Data/Information’ of the economic transactions undertaken available with the government.

The Government is concentrating its efforts to gather relevant information and is trying to further accelerate the process of gathering the data / information of the economic transactions including those being transactions in banking channels, electricity and gas connections, land records and other consumption data relating to expenses on travel, children education etc. as recorded in NADRA etc. and any other possible means in accordance with the international best practices.

In these circumstances it will be difficult, rather impossible, for any person to undertake the economic transactions which remains outside the purview of fiscal/financial system of the country.

“In these circumstance it is reiterated that any mis-apprehension about the manner of the operations of FBR in post July 1, 2019 and the availability of data with the government be dispelled with,” the FBR said.

The FBR said that the Assets Declaration Scheme 2019 which is simple to be availed in order to live in a peaceful, comfortable, and a civilized manner for the betterment of Pakistan. It is considered that the context of the aforesaid paragraphs will be considered with respect to the decision for declaration under the Scheme to be made by June 30, 2019.

The Assets Declaration Scheme 2019 will expire on June 30, 2019. It is reiterated that all persons having un-disclosed and un-declared assets and un-disclosed expenditure are strongly advised to avail the scheme.

KARACHI: Federal Board of Revenue (FBR) has issued notices to unregistered commercial and industrial electricity connection holders to file their returns of incomes and sales otherwise from July 01 the tax authorities would initiate legal action that may lead to imprisonment.

Large Taxpayers Unit (LTU) II Karachi issued notices to electricity connection holders of commercial and industrial, stating: “as per data available with FBR you are an Industrial / commercial consumer of electricity, meaning thereby electricity is being used for business purpose.”

It is brought to your knowledge that every person engaged in making taxable supplies in Pakistan is liable to be registered as warranted under section 14 of the Sales Tax Act, 1990.

The data further shows that you have not obtained Sales Tax Registration.

The FBR in its strive to broaden the tax base, intends to register all those persons who are liable to be registered under Sales Tax Act, 1990 or Federal Excise Act, 2005, or the persons earning taxable income and liable to file return under Income Tax Ordinance, 2001 but who have failed to do so.

In order to facilitate the taxpayers in declaring their undeclared income, sales, assets, etc. A scheme has been introduced by Govt of Pakistan /Federal Board of Revenue which provides for declaration of such income, sales, assets, etc by 30th June, 2019 at a very concessionary rate.

“You may avail the benefit of this last opportunity to declare income, sales, assets etc at nominal rates and get registered / file return, if you have not done so,” according to a notice.

After 30th June, 2019 all those persons who are liable to be registered and pay sales tax/ federal excise duty, or liable to file income tax return, if fail to do so, may compulsorily be registered made to file return and duties and taxes would be recovered along with default surcharge and penalty which may also entail prosecution proceedings leading to imprisonment.

KARACHI: Ms. Seema Shakil, Member Inland Revenue (Operations), Federal Board of Revenue (FBR) on Monday said that date for asset declaration scheme will not be extended due to obligations under IMF loan program.

“The last date for availing asset declaration scheme is June 30, 2019. There will be no further extension in the last date as the IMF loan program will commence from July 01,” the member said at an even organized by Karachi Tax Bar Association (KTBA).

She said that present scheme was bargained with the IMF in order to provide people declare their undisclosed cash, assets and supplies before the tax machinery launch massive crackdown.

Ms. Seema Shakil said that the asset declaration scheme had been launched within short span of 8 to nine months considering bulk of information of Pakistanis having offshore investments received. Besides, information under OECD treaty has also been received to the authorities.

Further, the FBR notified rules for Benami laws in February 2019 empowering authorities to take action against people having assets in some other names.

It was demand from the stakeholders to allow such scheme before any harsh action. She said that it was unfair to take action without giving opportunity.

On the occasion, Zeeshan Merchant, former vice president, KTBA highlighted the major points of the asset declaration scheme.

He said that the scheme was expiring on June 30, 2019 and people were still trying to understand it.

He urged the tax authorities to extend the last date for availing the scheme as much of the time had lapsed due to Eid holidays.

Abdul Qadir Memon, President, Pakistan Tax Bar Association, Rehan Siddiqui, President, KTBA and other senior official of FBR were also present on the occasion.