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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.

  • Tax rates for proposed Amnesty Scheme 2019

    Tax rates for proposed Amnesty Scheme 2019

    KARACHI: Persons may be allowed to avail tax amnesty at one percent for undeclared banking transactions of past five years.

    According to draft of Tax Amnesty Scheme 2019, credit entries in a person’s own bank account is allowed at one percent of the total credit entries from July 01, 2013 till June 30, 2018 or 10 percent of peak credit entries during the said period whichever is higher.

    A tax rate of 10 percent has been proposed for declaration of benami assets.

    For foreign liquid assets repatriated into Pakistan the tax rate shall apply at five percent.

    The government has also proposed to allow transactions into benami bank accounts at only two percent of the total credit entries from January 01, 2017 till April 15, 2019 or 10 percent of peak credit entries during the said period whichever is higher.

    Any other assets have been allowed to avail amnesty at 7.5 percent of the prescribed value.

    The valuation has been proposed for undisclosed income and assets for the purpose of Section 5(2) of Income Tax Ordinance, 2001.

    For undisclosed bank accounts, the credit entries from July 01m 2013 till June 30, 2018.

    For undeclared open plots and land, flat the valuation shall be cost of acquisition or FBR values on April 15, 2019, whichever is higher.

    For undisclosed superstructure, the valuation has been proposed at Rs1,500 per square feet.

    For undisclosed motor vehicles, the valuation shall be costs incurred till original registration.

    For undisclosed gold, the valuation shall be Rs5,000 per gram.

  • FBR sets up complaint cell against corrupt officials

    FBR sets up complaint cell against corrupt officials

    ISLAMABAD: Federal Board of Revenue (FBR) has established a dedicated cell to facilitate taxpayers in filing complaints against corrupt practices of officials of Inland Revenue and Pakistan Customs.

    The FBR on Wednesday said that it had established Integrity Management Cell (IMC) to facilitate general public / taxpayers for filing of complaints against corrupt practices of officers/officials of FBR.

    The FBR said that following modes may be adopted to lodge complaints:

    — By directly calling helpline at 111-772-772 for information.

    — By visiting field offices of Inland Revenue & Pakistan Customs.

    — By sending an email at [email protected]

    — By filing complaint on FBR online portal.

    — By submitting either a hard copy of the complaint through post or meeting in person with Secretary (IMC), FBR (HQ), Constitution Avenue, Islamabad.

  • FBR asks financial institutions to provide account holders details for automatic exchange of information

    FBR asks financial institutions to provide account holders details for automatic exchange of information

    KARACHI: Federal Board of Revenue (FBR) has asked financial institutions to provide details of their account holders by May 31, 2019 for the purpose of automatic exchange of information with OECD member countries.

    In a notice sent to Pakistan Stock Exchange (PSX), the FBR said that as per section 165(B) and 107(1) of Income Tax Ordinance, 2001 and other applicable domestic laws and rules related to Automatic Exchange of Information (AEOI), the Reporting Financial Institutions are required to obtain and maintain certain information about their account holders in accordance with the CRS Rules notified by FBR through SRO166(I)/2017 on March 15, 2019, which has to be reported to FBR on an annual basis on May 31 of every year.

    The FBR said that reports from RFIs are due on May 31, 2019. In this regard the FBR asked the stock exchange to direct the RFIs that report to or are under the control of the stock market to ensure timely compliance as per law and rules.

    The FBR warned that in case of failure the RFIs would be penalized under Section 182 of the Income Tax Ordinance, 2001.

  • Sales Tax Act 1990: Recovery of amount erroneously refunded

    Sales Tax Act 1990: Recovery of amount erroneously refunded

    KARACHI: The officers of Inland Revenue have been authorized for recovery of refunded amount erroneously issued to taxpayer along with penalties and default surcharge.

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  • FBR promotes 49 Inland Revenue Officers to Assistant Commissioner BS-17

    FBR promotes 49 Inland Revenue Officers to Assistant Commissioner BS-17

    ISLAMABAD: Federal Board of Revenue (FBR) o Wednesday promoted 49 officers of Inland Revenue from BS-16 to the post of Assistant Commissioner Inland Revenue (BS-17) with immediate effect.

    Following are the officers, who are promoted by the FBR:

    01. Farrukh Rehman, Regional Tax Office (RTO), Faisalabad

    02. Amjad Ali Khan, Corporate RTO, Lahore

    03. Kanwar Abdul Rahim, RTO Multan

    04. Muhammad Akbar, RTO Multan

    05. Iftikhar Ahmad Lali, RTO Faisalabad

    06. Malik Muhammad Arshad, Corporate RTO, Lahore

    07. Mehrur Rehman, RTO Peshawar,

    08. Abid Hussain, RTO Peshawar

    09. Fazl-e-Amin, RTO Peshawar

    10. Asim Sana Naik, Corporate RTO Lahore

    11. Khuda Bux Abbasi, RTO Sukkur

    12. Tafukhur Zahoor, Directorate of Internal Audit (IR), Lahore

    13. Muhammad Pervez Khan, Large Taxpayers Unit (LTU) Karachi

    14. Darshan Lal, Corporate RTO Karachi

    15. Muhammad Khan, Corporate RTO Lahore

    16. Tauheed Raziq Khan, RTO Multan

    17. Muhammad Humayun, RTO Peshawar

    18. Aslam Pervez, RTO Peshawar

    19. Qaisar Khan, RTO Peshawar

    20. Mazhar Javed, RTO Sahiwal

    21. Muhammad Zafar Iqbal, RTO Multan

    22. Muhammad Mazhar Ejaz, RTO Faisalabad

    23. Ashfaq Ahmed, LTU Karachi

    24. Muhammad Yaqub Malik, RTO Islamabad

    25. Akbar Ali Shad, Internal Audit (IR) Islamabad

    26. Muhammad Mohsin, RTO-II Islamabad

    27. Farasat Yar Khan, Corporate RTO Karachi

    28. Ejaz Iqbal Raja, RTO Rawalpindi

    29. Muhammad Asghar, RTO Faisalabad

    30. Azizur Rehman Awan, RTO Quetta

    31. Saleem Raza, RTO Sargodha

    32. Abdul Qayyum, LTU Islamabad

    33. Ansar Hussain, Internal Audit IR Rawalpindi

    34. Zia Ahmad Butt, LTU Islamabad

    35. Muhammad Rafiq Awan, LTU Karachi

    36. Khalid Ali Siddiqui, LTU II Karachi

    37. Muhammad Irfan Siddiqui, LTU Karachi

    38. Mustafa Tayyab Ali, Corporate RTO Karachi

    39. Muhammad Naeem Sialvi, RTO II Lahore

    40. Aftab Ahmad Nasir, RTO Faisalabad

    41. Javed Iqbal, RTO Faisalabad

    42. Muhammad Altaf Anjum, RTO Faisalabad

    43. Jamshed Khan, Directorate of Intelligence and Investigation, IR, Peshawar

    44. Muhammad Zafar, RTO Islamabad

    45. Ishtiaq Ahmed, RTO Gujranwala

    46. Mehboob Ahmed, RTO Gujranwala

    47. Mehboob Ahmad, RTO Gujranwala

    48. Noor Muhammad Baloch, RTO III Karachi

    49. Muhammad Shahzad, Corporate RTO Karachi

    The FBR said that the promotion would take effect from the date of their joining, subject to the

    conditions that no disciplinary proceedings are pending against them.

  • Sales Tax Act 1990: refund of input tax payable in 45 days

    Sales Tax Act 1990: refund of input tax payable in 45 days

    KARACHI: Federal Board of Revenue (FBR) is required to pay sales tax refunds to the taxpayers in 45 days from the date of filing claim.

    According to recently updated Sales Tax Act, 1990 issued by the FBR, the Section 10 explained the refund of input tax.

    Section 10: Refund of input tax

    Sub-Section (1): If the input tax paid by a registered person on taxable purchases made during a tax period exceeds the output tax on account of zero rated local supplies or export made during that tax period, the excess amount of input tax shall be refunded to the registered person not later than forty-five days of filing of refund claim in such manner and subject to such conditions as the Board may, by notification in the official Gazette specify:

    Provided that in case of excess input tax against supplies other than zero-rated or exports, such excess input tax may be carried forward to the next tax period, along with the input tax as is not adjustable in terms of sub-section (1) of section 8B, and shall be treated as input tax for that period and the Board may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, prescribe the procedure for refund of such excess input tax.

    Provided further that the Board may, from such date and subject to such conditions and restrictions as it may impose, by notification in the official Gazette, direct that refund of input tax against exports shall be paid along with duty drawback at the rates notified in the such notification.

    Sub-Section (2): If a registered person is liable to pay any tax, default surcharge or penalty payable under any law administered by the Board, the refund of input tax shall be made after adjustment of unpaid outstanding amount of tax or, as the case may, default surcharge and penalty.

    Sub-Section (3): Where there is reason to believe that a person has claimed input tax credit or refund which was not admissible to him, the proceedings against him shall be completed within sixty days. For the purposes of enquiry or audit or investigation regarding admissibility of the refund claim, the period of sixty days may be extended up to one hundred and twenty days by an officer not below the rank of an Additional Commissioner Inland Revenue and the Board may, for reasons to be recorded in writing, extend the aforesaid period which shall in no case exceed nine months.

  • FBR waives penalty on overstayed consignments

    FBR waives penalty on overstayed consignments

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday waived penal surcharges on overstayed consignments to facilitate trade community.

    The FBR said that the waiver had been granted in pursuance to decision taken at the Economic Coordination Committee (ECC) of the Cabinet held on March 27, 2019 to waive penal surcharges on the overstayed cargoes at ports.

    The FBR said that the time to stay of the cargo has been extended up to April 13 the period for which warehoused goods may remain in the warehouse.

    Further the government also directed to remit penal surcharges in the case of goods which are cleared from the warehouse within the period starting on April 08, 2019 and ending April 13, 2019.

    The FBR said that the decision would not apply to the goods which had since been abandoned or auctioned under the rules.

  • FBR empowered to use third-party information for identifying tax dodgers: MTEF

    FBR empowered to use third-party information for identifying tax dodgers: MTEF

    ISLAMABAD: Federal Board of Revenue (FBR) has been empowered for using third-party information to identify tax dodgers.

    The Medium-Term Economic Framework (MTEF), which was launched on Monday by the Finance Minister Asad Umar, the government had promulgated a law so as to allow FBR to access third-party data bases.

    The MTEF pointed out building data analytics capacity to utilize available information. “This involves identifying and identifying and pursuing individuals falling outside the tax net through the use of third-party information on consumption patterns utilizing data from income, income tax returns and expenditure data from various sources such as travel, bank account, car ownership, property ownership, children studying abroad, children studying in expensive schools etc.”

    Since FBR does not have adequate capacity to utilize these data using latest techniques available, it would be necessary to collaborate with researchers and experts to develop efficient and effective analytical tools.

    The government has evolved measures to strengthening tax enforcement and tax audits

    The framework said that tax enforcement has remained one of the weakest areas of tax administration.

    The government intends to overcome this shortcoming by building enforcement capabilities within FBR through staff training and an intensive use of information technology.

    In this regard, priority is being given to putting in place a track-and-trace system and strengthening the risk-based tax audits.

    The government also planned harmonizing the tax codes. The MTEF said that the government is well aware that some tax issues (e.g. non-harmonized sales tax rates across tiers of government, taxation of real estate, etc.) adds to the cost of doing business by requiring multiple tax returns to be filed in a single tax year.

    While working with the provincial governments in the National Finance Commission (NFC) framework, the federal government intends to harmonize the tax code and integrate tax processes through digitization and process automation.

    In addition, it intends to establish a mechanism to fast-track resolution of tax disputes, thus reducing compliance cost.

    This will reduce the cost of doing business to some extent and make it harder for taxpayers to play the tax administrations off against each other to evade taxes.

    An NFC sub-group has already been tasked with formulating recommendations to simplify payment of taxes to enhance ease of doing business in taxation area.

  • Active taxpayers list shows 1.88 million return filers

    Active taxpayers list shows 1.88 million return filers

    KARACHI: The number of active taxpayers has surged to 1.88 million for the tax year 2018 as of April 07, 2019, according to an official document released on Monday. This marks a significant increase from the previous year, reflecting a growing compliance among taxpayers in Pakistan.

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  • Sales Tax Act 1990: buyer, seller jointly responsible for unpaid tax

    Sales Tax Act 1990: buyer, seller jointly responsible for unpaid tax

    KARACHI: Where an amount of tax unpaid in supply chain then registered buyer and seller are both responsible for paying to national exchequer.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 8A explained joint and several liability regarding unpaid tax.

    Section 8A: Joint and several liability of registered persons in supply chain where tax unpaid.

    Where a registered person receiving a taxable supply from another registered person is in the knowledge or has reasonable grounds to suspect that some or all of the tax payable in respect of that supply or any previous or subsequent supply of the goods supplied would go unpaid, of which the burden to prove shall be on the department such person as well as the person making the taxable supply shall be jointly and severally liable for payment of such unpaid amount of tax:

    Provided that the Board may by notification in the official gazette, exempt any transaction or transactions from the provisions of this section.

    Section 8B: Adjustable input tax.

    Sub-Section (1): Notwithstanding anything contained in this Act, in relation to a tax period, a registered person shall not be allowed to adjust input tax in excess of ninety per cent of the output tax for that tax period:

    Provided that the restriction on the adjustment of input tax in excess of ninety percent of the output tax, shall not apply in case of fixed assets or Capital goods:

    Provided further that the Board may by notification in the official Gazette, exclude any person or class of persons from the purview of sub-section (1).

    Sub-Section (2): A registered person, subject to sub-section (1), may be allowed adjustment or refund] of input tax not allowed under sub-section (1) subject to the following conditions, namely:

    (i) in the case of registered persons, whose accounts are subject to audit under the Companies Ordinance, 1984, upon furnishing a statement along with annual audited accounts, duly certified by the auditors, showing value additions less than the limit prescribed under sub-section (1) above; or

    (ii) in case of other registered persons, subject to the conditions and restrictions as may be specified by the Board by notification in the official Gazette.

    Sub-Section (3): The adjustment or refund of input tax mentioned in sub-sections (2), if any, shall be made on yearly basis in the second month following the end of the financial year of the registered person.

    Sub-Section (4): Notwithstanding anything contained in sub-sections (1) and (2), the Board may, by notification in the official Gazette, prescribe any other limit of input tax adjustment for any person or class of persons.

    Sub-Section (5): Any auditor found guilty of misconduct in furnishing the certificate mentioned in sub-section (2) shall be referred to the Council for disciplinary action under section 20D of Chartered Accountants, Ordinance, 1961 (X of 1961).