The Large Taxpayers Office (LTO) in Karachi, the flagship revenue collection arm of the Federal Board of Revenue (FBR), has achieved an extraordinary 41% growth in revenue collection during the first 10 months of the current fiscal year (July – April).
(more…)Tag: LTU Karachi
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FBR freezes SSGC’s bank accounts for tax recovery
The Federal Board of Revenue (FBR) has taken stringent measures to recover outstanding dues by attaching the bank accounts of the Sui Southern Gas Company Limited (SSGC) amounting to Rs23 billion.
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LTO Karachi facilitates Tier-1 retailers in POS integration
KARACHI: Large Taxpayers Office (LTO) Karachi has facilitated Tier-1 retailers to resolve issues in installation of Point of Sale (POS), a statement said on Wednesday.
In this regard the LTO Karachi established a fully automated, computerized and equipped with modern communication devices control room in order to implement POS Scheme announced by the Federal Board of Revenue and to resolve problems likely to arise during implementation course of POS.
READ MORE: FBR announces prize winners in second POS invoice balloting
Officials at the LTO Karachi said that the control room team would monitor real-time activity of Tier-1 retailers and would register complaints for non-implementation of POS scheme or non-issuance of POS generated invoices.
The team shall receive information, complaints from general public or higher authorities through telephone, email or post, regarding non implementation of POS or non-availability of POS Scheme in any retail outlet of any taxpayer.
READ MORE: FBR announces winners of first POS prize draw
The information shall be shared with concerned Enforcement Zone wherever necessary for their help and necessary action as per law and procedure.
In order to give rapid response to queries and problems raised by general public and to deal with inactive POS machines in respect of taxpayers being assessed in this office, a Rapid Response Team under the leadership of Additional Commissioner.
READ MORE: Prize scheme on invoices issued by retailers
The Rapid Response Team shall conduct inspection of outlets of taxpayers and ensure implementation of POS Scheme. During the visit, each members of the team shall be courteous and shall act as per law and procedure.
After visit of the business premises of the retailer and thorough examination of the information / complaint received, the Team through Focal Person (POS) shall submit Visit Report in this office depicting entire activity of the visit.
The team shall provide assistance to the outlet management, if required by taxpayer, in implementation of POS Scheme.
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LTO Karachi takes measures to contain resurgence of coronavirus
KARACHI: Large Taxpayers Office (LTO) Karachi has taken measures to contain the resurgence of coronavirus. In this regard, an advisory has been issued for the staff of LTO Karachi with directives of strict implementation.
Badaruddin Ahmed Qureshi, Chief Commissioner, LTO Karachi directed all divisions including audit, enforcement and legal of the tax office in order to contain the spread and resurgence of coronavirus.
The following advisory has been issued:
01. No one shall enter into the premises of offices without wearing a mask.
02. Social distancing of at least six feet must be maintained by all officers and staff.
03. Temperature of every person will be monitored at the entrance with thermal guns.
04. A person having flue, cough, shortness of breath and body pain shall not be allowed to enter in the premises of office.
05. The office is declared as no smoking zone.
06. Unauthorized persons shall not be allowed to visit offices unnecessarily and without any reason.
07. All symptomatic and suspected employees must be identified and reported to the Chief Commissioner Inland Revenue Office.
08. Any officer/official found violating any instruction contained in this SOPs shall be liable for action in accordance with applicable law and rules accordingly.
09. All officers/officials/visitors should wash hands with soap and water or hand sanitizer properly and regularly. Hand sanitizer should be available at all time on the wall-mounted spray machines and in the washrooms/lavatories.
10. The administrative officer shall ensure the provisions of thermal guns at the entrance of office for screening of body temperature of officer/officials/visitors.
11. Administrative officer shall ensure effective disinfection of all office at regular intervals.
12. Lifts/elevators installed in the field offices shall be used as less possible and lift operators shall be provided with antiseptic sprays and swabs to clean the buttons/knobs regularly.
13. In order to avoid physical contact with door handle/knobs, it is advised that all office door be kept open and room window be kept open also to ensure ventilation.
14. The CCIR Office will ensure the provision of sufficient number of face masks to all commissioner for onward distribution among the officer/officials.
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LTU Karachi to hold e-Katcheri on July 24
KARACHI: Large Taxpayers Unit (LTU) Karachi will hold e-Katcheri on July 24, 2020 for efficient service delivery and ensure public trust.
The program has been launched in compliance with the directive of the prime minister to conduct e-Khuli Katcheri to stay in contact with the public by all available means and provide them accessible platform to raise their issues for timely resolution.
In this regard Badaruddin Ahmed Qureshi, Chief Commissioner Inland Revenue, LTUK Karachi will conduct e-Khuli Katcheri on Friday from 11:30 AM to 12:30 noon through Zoom video link.
The taxpayers facilitation wing of the FBR recently circulated about the program directing that e-Katcheri would be conducted by every tier of FBR in the second week of every month on regular basis.
The FBR directed all the tax offices to ensure that all proceedings of the e-Katcheri are property recorded and tasks should be assigned to concerned officers accordingly.
The tax offices have also been directed to submit performance report on the outcome of the meeting with public.
In the wake of COVID-19, the tax authorities shall conduct one e-Katcheri at all tiers of FBR in the second week of every month. In the backdrop of COVID-19, only e-Katcheris shall be conducted for the time being until normalcy of the situation.
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LTU Karachi auditor awarded ‘removal from service’
ISLAMABAD: Federal Board of Revenue (FBR) has awarded major penalty of ‘removal from service’ on an auditor (BS-18) posted at Large Taxpayers Unit (LTU) Karachi for inefficiency and misconduct.
A notification issued on Monday, the FBR said that disciplinary proceedings against Ghulam Fareed Pario, Assistant Director (Audit) (BS-18), Large Taxpayers Unit, Karachi were initiated under the Government Servants (Efficiency & Discipline), Rules 1973 on account of Inefficiency and Misconduct for his unauthorized absence from duty.
The unauthorized absence from duty was borne out of record, the Authorized Officer i.e. Member (Admn) issued a direct Show Cause Notice to the accused.
The accused officer submitted reply to the show cause notice on September 03, 2019 through email and courier.
After having examined the relevant record and written defence, the authorized Officer concluded that willful absence from duty of Ghulam Fareed Pario, Assistant Director (Audit) (BS-18) LTU Karachi w.e.f.16.05.2019 stood established and recommended to the Authority for imposition of major penalty of “Dismissal from Service”.
The Secretary Revenue Division, being the Authority in this case, provided opportunity of personal hearing to the accused on 18.10.2019 which also remained unavailed.
Now therefore, Secretary Revenue Division, being authority in this case, after having considered all aspects of the case and imposed major penalty of “Removal from Service” upon Ghulam Fareed Pario.
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Tax credit for final, minimum regimes may be withdrawn
ISLAMABAD: The tax authorities may withdraw tax credit available to taxpayers falling in final and minimum tax regimes, sources in Federal Board of Revenue (FBR) said.
The sources said that the Large Taxpayers Unit (LTU) Karachi has submitted its proposals for budget 2020/2021 and recommended withdrawal of tax credit for final tax and minimum tax regimes.
The sources said that the elimination of tax credit likely to generate Rs5 billion during the next fiscal year.
The LTU Karachi suggested amendment in Section 65B, 65D and 65E of Income Tax Ordinance, 2001 to withdraw tax credit for taxpayers falling in minimum tax and final taxation.
The LTU Karachi said that allowing tax credits against minimum tax and final taxes payable under the Ordinance is against the principal of fairness and final tax regime.
It further said that the withdrawal of tax credit to such taxpayers would help the revenue body to get additional Rs5 billion during the next fiscal year.
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LTU Karachi posts 15% growth in revenue collection
KARACHI: Large Taxpayers Unit (LTU) Karachi has registered 15 percent growth in revenue collection during first seven months of current fiscal year, a statement said on Monday.
The LTU Karachi said that it had collected Rs796 billion during July – January 2019/2020 as compared with Rs690 billion in the corresponding period of the last fiscal year.
The unit collected Rs108 billion during January 2020 as compared Rs92 billion collected in the corresponding month of the last year.
The payment of refunds including income tax and sales tax has increased by 42 percent during the period under review. The unit paid Rs31 billion as refunds during first seven months of current fiscal year as compared with Rs22 billion in the corresponding months of the last year.
The unit attributed the collection growth to strong enforcement as well as on site monitoring of production of various sectors including oil, gas, sugar and cement.
Further, various tax evasion and tax avoidance cases have been detected, which are under investigation and substantial tax collection is expected during the coming months of current fiscal year, the unit said.
Besides, during the month of January, current and arrear demand has been recovered at Rs2.7 billion against Rs2.5 billion for the corresponding month of the last year.
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LTU Karachi collects Rs688 billion in first half
KARACHI: Large Taxpayers Unit (LTU) Karachi has collected Rs688 billion during first six months (July – December) of 2019/2020 as against Rs598 billion in the corresponding period of the last fiscal year, showing 15 percent growth, a statement said on Tuesday.
So far as December 2019 is concerned, LTU Karachi collected Rs160 billion as compared with Rs144 billion in the same month of the last year.
The rise in collection has been attributed to various tax facilitation and enforcement projects during the last six months by the LTU Karachi.
The unit issued Rs17.8 billion as sales tax refunds during the period in order to effectively address liquidity problems of the manufacturing sector.
In ongoing Broadening of Tax Base (BTB), the LTU Karachi retrieved data of unregistered commercial and industrial gas consumers and shared with the territorial regional tax offices for issuance of notices and registering the non-filers on income tax returns. This effort resulted in substantial increase in return filers.
The statement said that pursuing proactive policy of Federal Board of Revenue (FBR), various steps had been taken for the purpose of early disposal of litigation cases pending with the courts. On this account, senior officers have been specifically deployed for assistance of the High Court of Sindh for early disposal of cases.
The LTU Karachi said that strong enforcement as well as on site monitoring of production had been steadily reinforced and the exercise had brought growth in revenue especially in sugar and cement sectors.
The unit further said that strong internal accountability mechanism had been strengthened at Chief Commissioner Secretariat, whereby activities of officers and staff were being personally monitored by the Chief Commissioner himself.
All major taxpayers of LTU Karachi were actively engaged and appreciated for their substantial revenue contribution. In order to educate and enlighten the taxpayers regarding new tax measures and procedures, numerous taxpayer education and facilitation seminars were held during this period.
These endeavors brought significant improvement in taxpayer’s voluntary compliance besides creating congenial atmosphere between taxpayers and tax collectors.
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LTU Karachi detects mega tax evasion of Rs18 billion by a company
KARACHI: Large Taxpayers Unit (LTU) Karachi has detected mega tax evasion to the tune of Rs18 billion by a company.
The unit, which is the largest revenue contributor towards total Federal Board of Revenue (FBR)’s total collection, issued a statement on Monday saying that it had detected evasion of sales tax to the tune of Rs18 billion.
“This discovery was made, when a taxpayer’s sales tax returns were scrutinized in depth revealing huge anomalies in declared sales.”
The LTU Karachi further said that the taxpayer had been served with the statutory notice under the relevant provisions of Sales Tax Act, 1990.
The unit further hoped to recover the evaded amount following the service of the notice and other legal formalities.
The LTU Karachi has jurisdiction over companies having huge turnover and paying significant amount as tax revenue.
The statement did not disclose the name of the taxpayer but the evaded amount shows the company might be belonged to one of those sectors on which the economy relied upon.
The LTU Karachi has jurisdictions over companies active in sectors including: oil market companies, exploration and production companies, banks, insurance, sugar, textile, cement etc.
The statement also pointed out another big case of illegal/unauthorized brought forward losses by a company in order to reduce the income tax liability.
The LTU Karachi detected huge tax evasion by the taxpayer, who claimed unauthorized/illegal brought forward losses to the tune of Rs21 billion.
“This revelation was made, when taxpayer’s past assessment record was probed in detail, whereby it transpired that against actual assessed losses of Rs10 billion, the taxpayer claimed losses to the tune of Rs21 billion resulting into over claim of losses to the tune of Rs11 billion.”
This disclosure would result into huge tax payments by the taxpayer during current and future tax years, the statement added.