KARACHI: A commissioner of Inland Revenue is responsible for making payment at KIBOR plus 0.5 percent per annum for late payment of income tax refund.
(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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Income Tax Ordinance 2001: FTR taxpayers not required to file returns
The Federal Board of Revenue (FBR) in Pakistan has introduced a noteworthy amendment, providing substantial relief to taxpayers falling under the Final Tax Regime (FTR).
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FBR launches trial run for online payment through 18 banks
In a significant leap towards modernization and efficiency, the Federal Board of Revenue (FBR) has initiated a pilot run for the collection of duties and taxes through an online payment system in collaboration with 18 prominent banks.
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PM directs harsh action against tax evaders, corrupt tax officials
ISLAMABAD: Prime Minister Imran Khan, on Tuesday, directed tax authorities to take strict measures against tax evaders and corrupt officials within the tax departments. The prime minister issued these directives during a meeting focused on the government’s revenue generation efforts.
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FBR invites income tax proposals for budget 2019-2020
The Federal Board of Revenue (FBR) has taken a proactive step towards fostering collaboration and seeking valuable input from the business community for the upcoming budget 2019-2020.
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Income Tax Ordinance 2001: Commissioner’s power to make provisional assessment
The Income Tax Ordinance, 2001 (ITO 2001) in Pakistan has granted power to the Commissioner to initiate provisional assessments when a person’s concealed asset is impounded by any government agency.
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Procedure for import of motor vehicles into Pakistan
KARACHI: Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under three different schemes, according to a guide issued by Federal Board of Revenue (FBR).
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Income Tax Ordinance 2001: Commissioners power to amend assessment of annual income return
KARACHI: A commissioner of Inland Revenue has been empowered to alter annual income tax return of a person on detection of tax evasion or avoidance.
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Income Tax Ordinance 2001: Commissioner IR empowered to make assessment for non-compliant taxpayers
KARACHI: In a significant move to enhance tax compliance, the Federal Board of Revenue (FBR) has updated the Income Tax Ordinance, 2001, granting Commissioners of Inland Revenue the authority to conduct ‘best judgement assessment’ for taxpayers who fail to file their annual returns and meet their tax obligations.
Under Section 121 of the amended ordinance, the commissioner is empowered to initiate a best judgement assessment in several scenarios. These include a taxpayer’s failure to furnish a statement as required by a notice under sub-section (5) of section 115, failure to submit a return of income in response to a notice under sub-section (3) or sub-section (4) of section 114, and failure to furnish a return as required under section 143 or section 144, among others.
The section stipulates that if a taxpayer neglects to produce necessary accounts, documents, and records required for assessment, the Commissioner may, based on available information and to the best of their judgement, assess the taxable income and determine the corresponding tax liability. Any such assessment is considered to have been made independently of the taxpayer’s filed return or revised return, rendering the latter of no legal effect.
Upon completing the assessment, the Commissioner is obligated to issue an assessment order to the taxpayer promptly. The order must include details such as the taxable income, the amount of tax due, any tax payments made, and information regarding the process of appealing the assessment order, including the time, place, and manner.
The revised ordinance also imposes a time constraint on the issuance of assessment orders under this section. Sub-section (3) dictates that such orders can only be issued within five years after the end of the tax year or the income year to which they relate. However, an exception is provided in cases where a notice for filing a return of income under sub-section (4) of section 114 is issued; in such instances, the assessment order must be issued within two years from the end of the tax year in which the notice is served.
The FBR’s move is aimed at bolstering the country’s tax collection efforts by ensuring that taxpayers fulfill their obligations and discouraging non-compliance. The provision of ‘best judgement assessment’ grants tax authorities the tools necessary to make informed decisions in the absence of complete and accurate information from non-compliant taxpayers.
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Green channel passengers asked to cooperate with customs on examination selection
KARACHI – Passengers arriving from abroad and utilizing the green channel at any airport are urged to cooperate with customs authorities, particularly in the case of random or parametric selections for examination.
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