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 ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday announced that it would issue a reward for those who point out objections involving tax evasion using false and airline invoices. A statement from the finance agency said it had urged people to come forward and disclose the identity of the people involved in tax evasion through false and airline invoices. "FBR will reward those who whistle under its Reward Rules," he said. The caller's name will be kept private. Details may be provided to the Director of Intelligence and Inland Revenue at office number 0519260167 and fax number 0519260156. The FBR announced that drastic measures were taken against the kidnappers involved in the fraudulent and flying business. In this regard the FBR chairman provided guidance to all FBR camp offices to expedite tax-free operations and play a significant role in stopping the threat of false and air invoices. At the same time, using indications, the Karachi Field Office of the FBR t...

 In this regard FBR on Tuesday directed retailers, who are required to combine their sales and purchases under the Sales Tax Act, 1990, in order to link their invoice plan by August 31, 2020. FBR explained that all retailers with a network of chain stores throughout Pakistan, work in supermarkets or pockets and additional electricity bills for twelve consecutive months exceeding twelve hundred rupees and engaging in bulk import and supply of good value to retailers and in the sale of buyers and the size of their store calculated thousands of square meters in area or more must cover their sales areas through the FBR commission reporting system for real-time sales. The FBR has warned that the last date for consolidation is August 31, 2020, after which those who fail to consolidate will be fined one million rand and if the case continues, the business premises of the sellers will be sealed. Orignal Source:  https://pkrevenue.com/fbr-decides-action-against-retailers-for-avoiding-m...

 FBR has issued a withholding tax card 2020-2021 (renewed until June 30, 2020) including an amendment to the Income tax Ordinance, 2001 by the Finance Act, 2020. Under section 236C of the Income tax Ordinance, the 2001 reserve tax must be collected from the seller of immovable property. Everyone who registers, records or certifies or transfers including property managers, real estate managers, community co-operatives and registrars or properties must collect taxes from the seller of immovable property at the time of registration, recording or proof of transport. The tax rate will be one percent of the total value of the consideration received. If a person does not appear in the active taxpayer list (ATL) the tax rate will be two percent of the total value of the consideration received. Withholding tax will be lower when the property is acquired and disposed of within the same year; otherwise the tax will be changed. Advance Taxes, under this section, are not collected if immovable ...

 FBR has issued a withholding tax card 2020-2021 (renewed until June 30, 2020) incorporating an amendment to the Income tax Ordinance, 2001 of the Finance Act, 2020. Under section 236 of the Income tax Ordinance, a 2001 person who repairs telecommunications / internet or issues / sells a prepaid mobile phone / Internet card will issue / collect a deductible tax on call registrars, Internet subscribers, Payment Cards buyers Internet, telecommunications and buyer of prepaid and prepaid phone cards or during the issuance or sale of prepaid cards. The reserve tax rates must be: (a) Telephone and Internet subscribers The monthly fee is up to Rs, 1000: Nil More than a thousand bills: Ten percent (b) in the case of an internet, mobile and prepaid internet subscriber or prepaid debit card will be 12,5 percent the price or sale price of the prepaid internet card or prepaid phone card or units sale using any electronic form or in any other form. Taxes collected / deducted will be adjusted by...

The FBR in a statement on Thursday said the complexity of return forms is a complex form of tax laws. “However, there is a critical need to simplify return forms without compromising on the details required to ensure the accuracy of the standard translation,” he added. Instead of trying to get all the information necessary for a tax return, a new section has been added where the taxpayer profile can be set up to capture relevant taxpayer data. Individuals who are already registered before September 30, 2020 and receive business income or taxable income, trusts, welfare organizations, non-profit organizations and other persons appointed by the board are required to submit an updated profit by December 31, 2020. Persons who receive their registration after September 30, 2020 will be required to submit that profile within 90 days of registration. In the event of any change in the information, such persons must review their details within 90 days of the change of details. The profile conta...

 FBR has released Sales tax Circular No 01 of 2020 / IR-Operation to introduce the Standard Procedure for over-Roll the STARR to challenge tax refund claims. The FBR said bringing about uniformity in the system, and avoiding misunderstandings and delays in the process of reimbursement is necessary to issue policy rules at the national level. Therefore, in the pressure of all previous directives, SOPs and guidelines on this matter, a new procedure has been put in place. Under the procedure a police officer under the rank of additional commissioner-IR will oversee complaints raised by the technical system after finalizing all official details and reviewing the opposition record. The FBR has released details of the protest which is usually displayed electronically where the police officer can rule. FBR, however, said the investor would provide soft copies of all conflicting scanned documents that required a decision. The financial institution also stated that where, as a result of the...

  ISLAMABAD: Federal Board of Revenue (FBR) has streamlined sales tax withholding regime for compelling sales tax return filing and realizing full revenue on sale/purchase. The FBR issued Circular No. 01 dated August 06, 2020 to explain changes made to Sales Tax Act, 1990 through Finance Act, 2020. The FBR said that Eleventh Schedule provides for withholding agents to deduct tax at the time of purchase from both registered and unregistered persons. The categories of withholding agents include Federal and Provincial Government departments, companies, public sector organizations and autonomous bodies. However, it has been noticed that most of the registered suppliers whose tax has been withheld do not usually file their sales tax returns and resultantly, fail to pay their remaining amount of 4/5th tax in case 1/5th of the tax involved is withheld by the purchaser as aforementioned. To enforce returns by the such suppliers and payment of remaining tax involved, the whole concept of wi...

  ISLAMABAD: Federal Board of Revenue (FBR) on Monday admitted to pay an amount around Rs232 billion as sales tax and income tax refunds to taxpayers. The FBR disclosed the amount of payable refunds at a meeting that was chaired by Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue. Muhammad Hammad Azhar, Federal Minister of Industries and Production, Muhammad Azam Khan Swati, Minister of Parliamentary Affairs, Abdul Razak Dawood, Adviser for Commerce, Textile and Investment, Naveed Kamran Baloch,  Faizullah Kamoka, Secretary Finance and Chairman FBR Muhammad Javed Ghani were also present in the meeting. Dr. Muhammad Ashfaq Ahmed, Member (IR-Operaions), FBR made a presentation on the issue of refunds. “The meeting was informed that a total of Rs142 billion of Sales Tax refunds were pending and Rs90 billion of Income Tax refunds were due for payment.” The Member also informed the Ministers that export sector had been prioritized and an unprecedented a...

  ISLAMABAD: Federal Board of Revenue (FBR) has said that 0.6 percent withholding tax shall be collected on cash withdrawal of Rs50,000 each day by persons not on the Active Taxpayers List (ATL). The FBR updated withholding tax card 2020-2021 after incorporating amendments to Income Tax Ordinance, 2001 made through Finance Act, 2020. The FBR issued the withholding tax card updated up to June 30, 2020. The withholding tax rates on cash withdrawal from banking companies shall remain same for tax year 2021 (2020-2021). According to the withholding tax card every banking company shall collect/deduct withholding tax from account holders withdrawing cash. The tax shall be deducted at the time the cash is withdrawn. The withholding tax on cash withdrawal was introduced in year 2005 by inserting Section 231A to the Income Tax Ordinance, 2001. Under this section the banks are required to collect 0.6 percent of cash withdrawn above Rs50,000 per day. It has been clarified by the FBR that the ...

  ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued draft rules to make indemnity bond mandatory for shipping lines intending to use facility of international transshipment cargo within Pakistani sea ports. The FBR issued draft rules through SRO 685(I)/2020 to amend Customs Rules, 2001. According to the draft rules, shipping lines intending to use the facility of international transshipment would require to furnish an indemnity bond for an amount equal to the approximate value of goods expected to be imported in thirty days as security to ensure exit of goods outside the country within 30 days from the berthing of inward vessel. The FBR said that the indemnity bond would be forfeited apart from other consequential penal action under the Customs laws, if the shipping line misuses the facilitation of international transshipment. If goods still remain on the port after the expiry date including extended time allowed under the law, the shipping line would be responsible to ...

ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rates on payments for goods and services during tax year 2021. The FBR updated withholding tax card 2020-2021 after incorporating amendments made to Income Tax Ordinance, 2001 through Finance Act, 2020. Under Section 153 of Income Tax Ordinance, 2001  every prescribed person shall collect withholding tax from resident person; Resident Person; and Permanent Establishment in Pakistan of a Non-Resident at the time the amount is actually paid for goods & services Under Section 153(1)(a)  the tax rate for sale of rice, cotton seed oil and edible oil shall be 1.5 percent of the gross amount and the tax rate shall be increased by 100 percent in case persons are not on the Active Taxpayers List (ATL). The tax rate for supply made by distributors of fast moving consumer goods: In case of company 2 percent of gross amount Other than company the tax rate shall be 2.5 percent of gross amount The tax rate shall be in...

ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rates on payment made to non-residents for tax year 2021 under Section 152 of Income Tax Ordinance, 2001. The FBR updated withholding tax card 2020-2021 (up to June 30, 2020) after incorporating amendments made through Finance Act, 2020. According to the withholding tax rates: Under Section 152(1), every person shall deduct tax while making payments for royalties and fee for technical payments to non-resident. The withholding tax rate shall be 15 percent of the gross amount and it shall be increased by 100 percent in case the person is not on the Active Taxpayers List (ATL). Every person paying royalty or fee for technical services to a non-resident shall withholding tax on payment to non-resident person at the time the royalty or fee for technical services is actually paid The tax shall be minimum tax as per section 6 read with section 8. Under section 152(1A), the tax will be deducted from a non-resident person on ...