FBR ISSUES MORE THAN 120,000 INITIAL NOTICES UNDER SECTION 144 OF INCOME TAX ORDINANCE, 2001

July 25, 2014

More than 120,000 initial notices (u/s 114 of the Income Tax Ordinance 2001) have been issued – based on large potential fiscal liabilities and location to ensure the initiative is nationwide- and more than 38,000 second notices (under section 122C) which are to be followed by provisional assessment, collection procedures, and penal and prosecution proceedings.  So far, more than 17,000 individuals have filed returns as a result of the initiative. Provisional tax assessment (under section 122 of the law) has been made in more than 28,000 cases                                                         Broadening of Tax Base Status as on 30.06.2014 Description Status First Notices issued(Notice under section 114 of the Income Tax Ordinance, 2001) 120,350 Returns Received 17,314 2nd Notices  Issued(Notice under section 122C of the Income Tax Ordinance,  2001) 38,413 Provisional Assessment Orders Passed 28,690 Demand Created Rs. 11 (bn) Tax Collected (with return and out of demand) Rs. 306 (Mn) The new policy measures taken through Finance Act 2014 to broaden the tax base include a new regime wherein different rates of withholding of Income tax for income tax return filers and non-filers on certain transactions have been introduced. This includes sale and purchase of immovable property, purchase, registration and transfer of ownership of motor vehicles, cash withdrawal from banks, and payment of profit on debt and dividend income. The higher rates of tax for non-filers will not only provide an incentive to non-filers to file returns and declare their income from all sources, but also provide a database to FBR for identification of potential taxpayers to be pursued of broadening of tax base initiative. Mujeeb-ur-Rehman Talpur Second Secretary (Public Relations) FATE Wing, Federal Board of Revenue,

FBR ISSUES MORE THAN 120,000 INITIAL NOTICES UNDER SECTION 144 OF INCOME TAX ORDINANCE, 2001

Daylong seminar held to explain budgetary changes to tax officials

July 23, 2014

A one-day seminar on “Budgetary changes brought in through Finance Act 2014” was held at Federal Board of Revenue (FBR) Headquarters here in the capital.

Member Facilitation and Taxpayers Education (FATE) FBR, Ms Riffat Shaheen Qazi chaired the seminar. Officers from Regional Tax Office (RTO) Islamabad, RTO Rawalpindi, LTU Islamabad, RTO Peshawar and RTO Abbottabad attended the seminar. Chief Sales Tax and Automation Ashfaq Ahmed Tunio and Chief Income Tax Policy Malik Amjad Zubair Tiwana briefed the participants on the changes brought in through the said Act.

In his address, Chief Sales Tax and Automation Ashfaq Ahmed Tunio explained different aspects of Sale Tax and Federal Excise measures in steel sector, steel units in sugar mills, cigarettes, aerated waters, cement, travel by air, chartered flights and retailers.

Chief Income Tax Policy Malik Amjad Zubair Tiwana explained different features of amendments relating to Income Tax law through Finance Act 2014. He explained major amendments in withholding taxes, other revenue measures and relief measures taken by the government. He also made clear different aspects of withholding taxes, new withholding taxes, enhancing rates of existing withholding taxes, creating distinction between filer and non-filer, enhancing withholding tax rates, increasing cost of doing business for non-filers, increasing cost of doing business for non-filers, revision in token tax, advance tax on registration and transfer, reduction in withholding tax rates, expense allocation in banking companies and reduction in tax rates.

Speaking on the occasion, Acting Chairman FBR Shahid Hussain Asad underscored the role of FBR officials and staff in resource mobilization and revenue generation extremely vital for the economic independence and socio-economic development of the country. He lauded the FATE Wing for organizing the seminar to educate the FBR officers and explain to them the legal provisions introduced in the Finance Act 2014.

Earlier, Ms Riffat Shaheen Qazi, Member FATE Wing welcomed the participants of the seminar and urged the officers to utilise their energies with dedication and commitment to achieve the revenue collection target set for the next fiscal year.

The briefing was followed by a questions-answers session. The participants raised different technical questions and they were answered accordingly.

Hamid Raza Wattoo

Secretary (PR)

Daylong seminar held to explain budgetary changes to tax officials