FBR delegates powers to IR officers for International Tax Operations directorate

ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday authorized officers of Inland Revenue to exercise powers and perform functions for the newly established Directorate General of International Tax Operations.

The FBR designated Chief Commissioner / Commissioner of Inland Revenue to perform as Director General of International Tax Operations. The director general shall have jurisdiction over persons or classes of persons carrying on business or residing in areas, within the territorial jurisdiction of Pakistan.

Similarly, the commissioner of Inland Revenue has been designated as director of International Tax Operations to have jurisdiction over .all persons or classes of persons carrying on business, falling within the jurisdiction of regional tax offices and large tax units.

The FBR also designated assistant and deputy directors of International Tax Operations.

Through Finance Act, 2017 Directorate General of International Tax Operations was established by amending Section 230E of Income Tax Ordinance, 2001.

The section stated:

(l) The Directorate General of international Tax Operations shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.

(2) The Board may, by notification in the official Gazette,

(a) specify the functions and jurisdiction of the Directorate General and its officers; and

(b) confer the powers of authorities specified in section 207 upon the Directorate General and its officers.

(3) The functions and powers of the Directorate General of International Tax Operations shall include but not limited to-

(a) receive and send information from other jurisdictions under spontaneous, automatic and on demand exchange of information under exchange of information agreements;

(b) levy and recover tax by passing an assessment order under section I23(1A) in case of undeclared off-shore assets and incomes;

(c) receive, transmit and exchange country reports to the jurisdictions that are parties to international by country agreements with Pakistan; and

(d) conduct transfer pricing audit in cases selected for such audit by the Director General of international Tax Operations.

(4) The Board may, by notification in the official Gazette, specify the criteria for selection of the taxpayer for transfer pricing audit.

Explanation- For the removal of doubt, it is clarified that transfer pricing audit refers to the audit for determination of transfer price at arm’s length in transactions between associates and is independent tax audit under section 177 and 2l4C which is audit of the income tax affairs of the taxpayer.

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