Mar 19, 2019 Implementation of Benami Transactions (Prohibition) Rules, 2019
After Implementation of Benami Transactions (Prohibition) Rules, 2019.The Federal Board of Revenue (FBR) has clarified that a Benami property means any property which is subject matter of Benami transaction and also includes proceeds from such property.
 
Benami transaction encompasses where a property is transferred to, or is held by, a person and the consideration for such property has been provided, or paid by, another person ( the trustees and wife, children, brother or sister to whom property has been transferred from known resources will be excluded); A transaction or arrangement in respect of a property carried out or made in a fictitious name; or a transaction or arrangement in respect of a property where the owner of the property is not aware of, or denies knowledge of, such ownership; or a transaction or arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious.
 
The potential types of Benami properties include plots, houses, shopping plazas, shops, housing schemes, bank accounts, vehicles, business shares, jewellery, foreign currency, legal documents and intangible properties having financial value.
 
Benami Transactions (Prohibition) Rules, 2019have been enforced with immediate effect and BTB zones of Inland Revenue Service have been assigned the duty to establish cases against Benami properties and submit challan to Adjudication Authority within 120 working days. During this period, sale, purchase and transfer of property will be banned till further orders. Appeal against the decision of Adjudication Authority can be lodged with the Federal Tribunal and after the decision of the Federal Tribunal such properties will be confiscated and sold out by the Federal Government. Furthermore, if the crime of Benami transactionis proved, criminalproceedings will be initiated against accused persons andwhere proven guilty,rigorous imprisonment of one year to seven years can be awarded to such persons. Similarly, persons providing false and baseless information can also be sentenced to rigorous imprisonmentof six months to five years. 
 
In this regard, the whistleblowers will be entitled to a cash reward for providing credible information leading to detection of Benami property or transaction. If property isworth Rs.2,000,000 or less, five percent of price of Benami property will be given to informer. If property’s worth is more than Rs.2,000,000 or 5,000,000, four percent of Benami property will be given to informer and where the value of property will be more than Rs.5,000,000, three percent of Benami property will be given to informer.
 
It is clarified that this reward will be given only if the information provided is of value and FBR doesn’t already have it and the information was not available in public records and appeal against confiscation of property has attained finality.
 
 
 
OFFICE OF SECRETARY PUBLIC RELATIONS
Facilitation & Taxpayers Education (FATE) Wing

Mar 16, 2019 The Federal Board of Revenue has extended the date of filing of Income Tax Returns/Statements for the Tax Year 2018 till 31st March.

The Federal Board of Revenue has extended the date of filing of Income Tax Returns/Statements for the Tax Year 2018 till 31st March.

An order issued on Friday says that the date of filing of returns of total income/statement of final taxation which were due on 31st August 2018 and extended up to 15th December 2018 is now hereby further extended up to 31st March 2019. The date of filing of returns for companies, individuals and association of persons is also extended to 31st March.

The FBR took this decision in view of numerous representations by various trade bodies and organizations along-with other taxpayers seeking extension in the date of filing of returns for Tax Year 2018.

This is a one time taxpayer’s facilitation measure. All persons, who have not yet filed their returns, are urged to take advantage of this opportunity. It goes without saying that FBR has extensive plans to pursue and legally proceed against those persons who are liable to file returns but don’t file it by this extended date.

OFFICE OF SECRETARY PUBLIC RELATIONS
FATE Wing

Mar 02, 2019 FBR issues advice for payment of Rs 7.23 billion Sales Tax refunds

Federal Board of Revenue (FBR) has issued an advice to the State Bank of Pakistan for making payment of sales tax refunds amounting to Rs. 7,236 million to facilitate the exports.

The payment will benefit 898 claimants involved in exports of textile, carpets, leather, sports goods, surgical instruments, rice, food items, machinery and other items. The refund has been paid against 2,637 refund payment orders issued up 30 th January, 2019.

The refund payments shall be transmitted electronically to the respective bank accounts of claimants by the State Bank of Pakistan by the close of banking hours on Monday, 4th March, 2019.

The payments have been made to all those claimants of the aforesaid categories who had provided their bank account details in IBAN format. Those refund claimants who have not provided account number in IBAN format are requested to provide the same through their user ID on FBR’s web portal.

Further, Federal Board of Revenue is conscious of the problems being faced by the businesses on account of outstanding refunds and is working on a plan to pay remaining outstanding refund claims by issuing bonds after the passage of Finance Supplementary (Second Amendment) Bill, 2019, which is presently under approval of National Assembly

OFFICE OF SECRETARY PUBLIC RELATIONS
FATE Wing

Mar 01, 2019 Pakistan Customs surpasses target by collecting Rs 444 billion in 8 months

Pakistan Customs has surpassed its target by collecting Rs 444 billion in first eight months of the current financial year i.e., July-February 2018-19. Target for collection of customs duty for first eight months was Rs 436 billion, 21% higher than the target for the same period of the previous financial year.

In addition, an amount of Rs 518 billion Sales tax has been collected at import stage against collection of Rs 521 billion in the previous financial year. The decline in collection of Sales Tax mainly owes to decrease in quantity and value of POL products.

Moreover, Customs Wing has collected Rs 152 billion Withholding Tax which is 6% higher than previous year collection. Also Federal Excise Duty (FED) collection at import stage during first eight months of the current financial year has registered significant growth of 23 % at Rs 9.1 billion in the current financial year as compared to Rs 7.4 billion in the previous financial year.

Press Section
FATE Wing

Feb 23, 2019 Minister of State for Revenue Hammad Azhar launches Tax Directory 2017

The Minister of State for Revenue Hammad Azhar launched the Taxpayers’ Directory 2017 for Parliamentarians and All taxpayers today at the FBR Headquarters. Chairman FBR Jahanzeb Khan and Member FBR IT Mehmood Aslam Lillah accompanied the Minister for Revenue.

It has been the fifth consecutive year that the Tax Directory for the Parliamentarians and the Tax Payers is published by FBR, said the Chairman addressing the gathering of the Income Tax officers and members of the media team. Increasing the number of tax payers and improving on the Tax to GDP ratio had been the top most priority of the current Government as already affirmed by the Prime Minister and the Minister of State, added the Chairman. There had been a 34% increase in the number of tax filers because of the steps taken by FBR, said the chairman. He further said that increase in investment, facilitation and fair treatment of the tax payers are the guiding principles of the incumbent government’s tax policy.

Minister of State for Revenue Hammad Azhar in his address to the participants of the ceremony said that the object of launching the Tax directory is to introduce financial transparency and sharing information with the Public on how much the Public representatives, who had been availing the resources of the country on behalf of the people, had been paying individually as taxes to the exchequer. The Minister also emphasized the importance of technological interventions in ascertaining the tax liabilities of the individuals thereby minimizing the element of human intervention and complaints against coercion. He said that there are challenges like increase in trade deficit and a large budget deficit that have accumulated over the years but we are taking measures to overcome it. He said that FBR had taken initiatives like ascertaining liabilities of the High Net worth Individuals and getting details of the off-shore assets of the Pakistanis and that will surely not only help in achieving our tax targets but increase our revenues.

The Minister of State also said that it will be our policy from now onwards to collect the taxes from wealthy and mighty first and treat everyone according to the law so that the belief in our system is restored in the hearts of the people. He said that it is the vision of our government to make this country prosperous by providing our business community with a competitive business environment and for this purpose we have offered a trade facilitation package which is in the parliament for approval. We hope that the future is bright for our country and FBR will play its rightful role in this drive towards prosperity.

Tehmina Aamer
Chief FATE

Feb 14, 2019 Advance Tax collection meant to facilitate taxpayers, says FBR

Federal Board of Revenue (FBR) has clarified certain media reports appearing in a section of the press claiming “advance taxes give artificial boost to revenue collection”.

In a statement issued today, FBR has termed the news report as misconceived and misguiding as the collection of Advance Tax depicts real time quarterly collection and the regime of Advance Tax collection is available in all developed countries’ tax systems. Since advance tax is paid on quarterly basis, it saves the taxpayer from excessive burden at the end of a financial year. Such a taxation also gives real-time tax collection estimates to the government. Besides, it is in consonance with the universally acclaimed taxing maxim of ‘Pay as You Earn’. Lastly, Advance Tax is not collected on arbitrary grounds. It is, in fact, collected in the light of clearly stipulated criterion laid down under Section 147 of the Income Tax Ordinance 2001 and the credit is given to the taxpayer at the time of filing of tax return

Hamid Raza Khan
Secretary (PR-FATE)

Feb 08, 2019 FBR launches Urdu version of Customs Act, 1969

Federal Board of Revenue (FBR) has launched the first Urdu Version of the Customs Act, 1969 for the convenience and benefit of the traders and the business community. The version is updated till the 30th June 2018 and has been uploaded on the FBR website for easy access of the business community as well as general public.

This is a major initiative of FBR in line with the requirements of Article 1 of the Trade Facilitation Agreement (TFA) which specifies the information required to be published and made available through internet in a non-discriminatory and easily accessible manner in order to enable the governments, traders and other interested parties to be acquainted with them.

Furthermore, FBR has also complied with the directives of the Honorable Supreme Court of Pakistan in its landmark decision in Constitutional Petition No. 56 of 2003 to translate Federal as well as Provincial laws into Urdu in compliance of Article 251 of the Constitution of Pakistan.

Hamid Raza Khan
Secretary (PR-FATE)

Feb 05, 2019 FBR starts receiving live transactions of textile, leather articles sales

Federal Board of Revenue (FBR) has started receiving live transactions of sales of finished articles of textile and leather and the eligible persons integrating or having already integrated their systems with the FBR can now avail of reduced rate of 6 per cent on their sales as announced by the federal government.

The federal government had notified effective from 1st July 2018, a reduced rate of 6% for finished articles of textile and leather for those registered persons who are online with FBR's computerized system. This system was made operational by issuing SRO 1360(I)/2018, dated 12.11.2018. As many as 75 registered persons are now integrated with FBR and declaring sales of their 2574 outlets through this system.

The FBR's system is now ready for receiving live sales transaction as specified in rule 150ZEB of Sales Tax Rules 2006. The eligible registered persons can download software and integrate all their already declared outlets with FBR's system. This is to be done by 3rd March 2019, in order to regularize the reduced rate already availed. In case of failure differential amount shall be recoverable.

The persons volunteering to integrate their systems for availing reduced rate on future supplies and who fulfil conditions in rules can approach respective Commissioners for approval in this respect. Websites hosted with a registered domain name have also been recognized to be treated as sales made through Point of Sale (POS)

Hamid Raza Khan
Secretary (PR-FATE)

Jan 25, 2019 FBR rebuts media reports claiming Rs 12 bn taxes imposed

فیڈرل بورڈ آف ریونیو (ایف بی آر) نے بعض اخبارات میں چھپنے والی اِس خبر کی تردید کی ہے جس کے مطابق فنانس سپلیمنٹری (سیکنڈ امنڈ منٹ) بل2019ء میں 12 ارب روپے کے نئے ٹیکس لگائے گئے ہیں۔
جمعرات کے روز جاری کردہ ایک اعلامیہ میں ایف بی آرنے متعلقہ خبروں کو غلط اور گمراہ کن قرار دیتے ہوئے واضح کیا ہے کہ فنانس سپلیمنٹری (سیکنڈ امنڈ منٹ) بل2019ء میں کوئی نیا ٹیکس نہیں لگایا گیا۔درآمدی بل کے حجم کو کم کرنے اور روپے کی قیمت کو مستحکم رکھنے کے لیے1800 سی سی سے زائد انجن پاور گاڑیوں کی درآمد اور اسی طرح پاکستان میں بننے والی 1800 سی سی سے زائد انجن پاور گاڑیوں پر ایکسائز ڈیوٹی میں اضافہ کیا گیا ہے جس سے دو سے تین ارب روپے کیے محصولات متوقع ہیں جبکہ اسی بل میں کم از کم 10 ارب روپے سے زائد کے ریلیف اقدامات اٹھائے گئے ہیں ۔فنانس بل سے مجموعی طور پر ایف بی آر محصولات میں 6.8 ارب روپے کی کمی آئے گی جس سے کاروباری افراد کی سہولیات میں اضافہ ہو گا۔

 

Hamid Raza Khan
Secretary PR (FATE)

Jan 25, 2019 FBR has powers to raise immediate demand and effect recovery provisionally

Federal Board of Revenue (FBR) has said it enjoys powers to raise immediate demand and effect recovery on provisional basis in case of government confiscated local assets under Section 123 of the Income Tax Ordinance.

The scope of this Section is proposed to be extended to discovery of undeclared offshore assets through the current Finance Bill. Now the demand and recovery of tax on such persons can be executed immediately after receipt of information in suitable cases. The measure is necessary to enable FBR to recover tax provisionally before the money moves out of bank accounts and the regular proceedings, which take about a year or two, follow.

FBR has further said that it can also request assistance in recovery of such taxes from foreign jurisdictions wherever it has bilateral and multilateral agreements. This will ensure that FBR can request freeze of offshore accounts to other countries by conveying demand to such countries.

FBR is already in possession of information of bank accounts of Pakistanis from 26 countries and this provision will enable FBR to move swiftly in the direction of taxing people involved in holding of offshore assets. As such, this measure has been introduced in addition to measures already available in Income Tax laws, Anti-Money Laundering Act and FIA/NAB laws and, in no way, precludes or overlaps the jurisdiction of such laws and institutions

Hamid Raza Khan
Secretary (PR-FATE)

Jan 11, 2019 Chinese Embassy donates 4 X-Ray scanners to Customs

Chinese Embassy in Pakistan donated four X-Ray scanners to the Custom Wing of Federal Board of Revenue here on Friday.

The equipments were handed over by Mr Chen Wei, Counsellor of the Embassy of the People’s Republic of China in Islamabad to Dr Jawwad Uwais Agha, Member Customs (Operations), Federal Board of Revenue in the presence of other senior officers of Pakistan Customs.

The donated scanners, having value of One million RMB, shall be instrumental in supporting the Customs authorities at the airports to effectively utilize non-intrusive technology in preventing smuggling of contrabands especially currency.

The gift of 4 X-Ray scanners will reaffirm the immutable bonds of friendship and brotherhood between the people of Pakistan and China, to strengthen the unbreakable and timeless China-Pakistan friendship, and to promote Customs clearance facilitation in Pakistan. 

Hamid Raza Khan
Secretary PR FATE Wing

Dec 26, 2018 FBR offices to remain open on Saturday and observe extended working hours on Monday

All FBR offices (LTUs/CRTOs/RTOs) to remain open and observe normal working hours on Saturday (December 29, 2018) and observe extended working hours till 10:00pm on Monday (December 31) to facilitate the taxpayers in payment of duties and taxes.

The Chief Commissioners to establish liaison with State Bank of Pakistan and authorized branches of National Bank of Pakistan to ensure transfer of tax collection by these branches on December 31, 2018 to the respective branches of State Bank on Pakistan on the same date so as to account for the same towards the collection for the month of December 2018

Hamid Raza Khan
Secretary PR FATE Wing

Dec 21, 2018 FBR meets stakeholders to forge consensus on Track &Trace System for tobacco products

Federal Board of Revenue (FBR) has held a wide-ranging, interactive session with the stakeholders, including representatives from the World Bank, to develop and implement a track and trace system for the tobacco products.

The deliberations were made as part of a workshop arranged by FBR today (20th December, 2018) and attended by representatives of the Cigarette Industry, IT Solutions Providers and Enforcement Officers of FBR. The participants of the workshop unanimously agreed to welcome the new proposed Track and Trace System if it was implemented across the board in its true sprit by adopting a fair and transparent process. 

Earlier, the Director General (BTB) FBR Islamabad briefed the participants on the purpose and scope of the Track and Trace System and invited the participants of offer their input and suggestions to make whole process fair and transparent. Project Director, Track & Trace System (T&TS) FBR also briefed the participants in detail on the concerns and observations of the stakeholders and regulatory authorities on the track & trace system.

Addressing the workshop, representatives of leading tobacco manufacturing companies operating in Pakistan expressed their concerns about cost-effectiveness of the Track and Trace Project while the IT solution providers called for a generic RFP as a non-specific or restrictive RFP limited the scope of a level-playing field necessary for all potential bidders to participate in the bidding process.

Speaking on the occasion, the representative from the World Bank expressed willingness on behalf of his organization provide all assistance to FBR to make the bidding process of the system a success.

 

Hamid Raza Khan
Secretary (PR-FATE)

Dec 19, 2018 Special benches constituted in superior courts for hearing of tax related cases

Special Tax Benches have been constituted in the honourable Supreme Court of Pakistan and the Lahore High Court for hearing of Tax related cases.

The Federal Board of Revenue had earlier provided the details of pending cases to the Supreme Court and the Lahore High Court with the request to formulate special tax benches. The Board also issued special instructions to the field formations to ensure that the departmental cases are properly prepared and represented before the courts when these are fixed for hearing.

Special Bench at the Supreme Court comprising Mr. Justice Umar Ata Bandial, Mr. Justice Munib Akhtar and Mr. Justice Yahya Afridi started hearing of cases around the middle of October 2018 while special bench at the Lahore High Court comprising Mr. Justice Shahid Jamil Khan and Mr. Justice Asim Hafeez have been hearing tax related cases since 23-10-2018. So far, the special bench at the honourable Supreme Court of Pakistan has decided over 122 cases whereas the special bench at the honourable Lahore High Court has decided over 265 tax related cases.

Formation of these Special Tax Benches is expected to speed up the hearing process and decisions in pending tax and expedite recovery of potential tax revenue.

Hamid Raza Khan
Secretary PR-FATE

Dec 15, 2018 17th December 2018 to be the last date for filing of Income Tax Returns

Federal Board of Revenue (FBR) has allowed filing of Income Tax returns until 17th December 2018 because of the weekend falling on 15th December which was previously announced as the deadline for filing of returns, says a statement issued by the FBR today.

The statement issued by the Official Spokesperson FBR says that a number of queries have been received about extension of last date of filing of return but the return filing date is not being extended any further. However, since the last date of filing of return falls on a non-working day, hence as per General Clauses Act the closing date for filing of Income Tax returns falling on 15th December 2018 as per previous announcement is automatically extended to next working day i.e. Monday the 17th of December. The tax offices will be extending help in filing of returns on Monday till close of office hours and the returns will be received electronically till 12 midnight.

Moreover, the Commissioners are also authorized to grant extension for a period up to 15 days on case-to-case basis. Although the receipt of return will not be blocked after due date, yet as per existing law, the names of persons who fail to file return by the closing date (or by the date extended by the Commissioners) will not be put on the Active Taxpayers List.

Hamid Raza Khan
Secretary (PR-FATE)

Dec 04, 2018 Certificate Distribution Ceremony of “Training of Trainers” for e-office implementation

Certificate Distribution Ceremony of “Training of Trainers” (Master Trainers) for e-office implementation was held at Federal Board of Revenue (FBR) in coordination with National Information Technology Board (NITB).

The e-office implementation started on directives of the Chairman Federal Board of Revenue, Mr. Jahanzeb Khan.

Information technology Wing FBR under Member IT, Mr. Khawaja Adnan Zahir was given the task to spearhead the E- office implementation.

E- Office Implementation program is being led by Ms. Syeda Adeela Bokhari and Ms, Javeria Hayat from Information technology wing and first step towards its implementation has been completed on December 4th, 2018.

Mr. Azhar Mehmood Janjua was the NITB Master trainer who trained more than 70 personnel for E- office Implementation from 15th November, 2018 till 4th December, 2018.

The closing ceremony was held at FBR Auditorium on 4th December followed with Certificate Distribution on the same day.

Hamid Raza Khan
Secretary (PR-FATE)

Nov 22, 2018 Government facilitating, not harassing, taxpayers, says FBR

Federal Board of Revenue (FBR) has said the government has facilitated the taxpayers by providing them a one-time option for closing the audit proceedings due to late filing of returns through the Finance Supplementary (Amendment) Act 2018.

In a statement, FBR has strongly denied news reports in a section of the print media accusing the taxation authorities of harassment of late filers, especially salaried individuals. The assertion by the media that FBR is pressurizing taxpayers for additional revenue through recovery of penalties reveals a lack of understanding about tax laws and their true intent.

FBR has clarified that an amendment in income tax law made through Finance Act 2015 by the previous government provided for automatic selection for audit if a person had not filed return of income by the due date stipulated under the law. Through Finance Act 2018 this amendment was withdrawn, however the cases that were automatically selected under the said provision prior to its withdrawal were still to be audited. This created a lot of problems for the taxpayers and also resulted in a large pendency of audit cases. Therefore, in order to facilitate the taxpayers, the present government, provided a one-time option to the taxpayers for closing the audit proceedings due to late filing of returns through the Finance Supplementary (Amendment) Act 2018.

Under the Finance Supplementary (Amendment) Act 2018, taxpayers were provided an option to get their audits closed on the payment of either 25% higher taxes than the tax paid with the return or in case no tax was payable 2% of the turnover and to file revised return by 31-12-2018. The salaried individuals whose cases were selected for audit due to late returns were facilitated by exempting them from the requirements of paying 25% higher tax and filing revised returns for closure of their audit cases. They however, had to pay only the penalty on account of delay in filing of return in order to get their audit cases closed. It is worth mentioning that the previous government had fixed the minimum penalty for late filing of return at Rs 20,000 through the Finance Act 2013 and no change has been made by the present government.

It is imperative to understand that the penalty proceedings are independent from audit which will be applicable regardless of whether the taxpayer avails the benefit under the above mentioned provision of the Finance Supplementary (Amendment) Act 2018 or not.

That is to say that even if the taxpayer chooses not to conclude its audit proceedings he or she would have to pay the tax charged as a result of audit proceedings as well as the penalty for late filing which, as mentioned before is an independent provision applicable on persons who were obliged to file their returns but filed the returns late. The present government tried to facilitate the salaried taxpayers by providing a one-time option to avoid additional tax liability under the audit proceedings.

Hamid Raza Khan
Secretary PR

Nov 22, 2018 Taxpayers can close audit by paying penalty or higher tax: Member FBR

All those taxpayers who have been selected automatically for audit u/s 214D due to late filing of returns for Tax Year 2015, 2016 and 2017, have now the opportunity for automatic closure of audit u/s 214E by paying the penalty or higher tax than previously filed return, whichever is applicable under the law, said Ms. Nausheen Javaid Amjad, Member Taxpayers’ Audit FBR.

She was chairing a seminar at auditorium of Corporate RTO, Karachi. The seminar was attended by the Chief Commissioner and Commissioner of LTUs and RTOs of Karachi. President of All Pakistan Tax Bar Association Mr. Abdul Qadir Memon, President Karachi Tax Bar Association Mr. Kahild Mehmood as well as a large number of lawyers, chartered accounts and tax practitioners also attended the seminar. She explained at length that the salaried persons or those whose income falls under the category of FTR/PTR have to pay penalty only to close their audits. However, taxpayers whose income falls under any other head of income, have to apply for revision of returns u/s 214E in IRIS system.

Mr. Umair Soomro, Senior Manager PRAL also demonstrated the IRIS working in this regard. He explained that a tab has been made available in the system for this task. The relevant Commissioner will approve the said request within three days or the system will automatically allow revision on the fourth day. The system will automatically calculate the tax due in both categories. Once the payment is made and relevant CPR is attached and submitted, the system will automatically close the audit proceedings. He explained that the CPRs shall be prepared u/s 214E specifically designed for the purpose. She adequately explained and highlighted all the aspects of the scheme. She briefed that the Section 214E is voluntary for taxpayers and has been announced for their facilitation however in cases where taxpayers are confident, they may opt for regular audit for assessment of their income tax affairs.  She also responded to the questions raised by the members of the tax bar and various persons present in the seminar. The facility for availing automatic closure of audit u/s 214E is available till 31 Dec 2018.

Member Taxpayers’ Audit further explained that Section 214D under which late filers were automatically selected for audit, has been deleted from the Income Tax Ordinance 2001 in the Finance Act 2018 due to undue hardships faced by new taxpayers and to facilitate the process of Broadening of Tax Base and is not applicable to the returns filed after 1st July, 2018.

 

 
 
 
Hamid Raza Khan
Secretary PR