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Federal Board of Revenue

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Federal Board of Revenue

  1. 1. Functions of Federal Board of Revenue
  2. 2. Function of Federal Board of Revenue Topics: Introduction What is FBR Mission and Vision Strength of FBR Organizational Chart Functions of Federal Board of Revenue List of chairman of FBR Members of Federal Board of Revenue Objectives of Reforms Needs of Reforms Tax Reform initiatives in chronological Order Recommendation  Income Tax Authorities  Delegation of Powers  Guidance to Tax Authorities  Overview of Website  Conclusion
  3. 3. INTRODUCTION OF FBR The Central Board of Revenue (CBR) was created on April 01, 1924 through enactment of the Central Board of Revenue Act, 1924. In 1944, a full-fledged Revenue Division was created under the Ministry of Finance. After independence, this arrangement continued up to 31st August 1960 when on the recommendations of the Administrative Re-organization Committee, FBR was made an attached department of the Ministry of Finance. In 1974, further changes were made to streamline the organization and its functions. Consequently, the post of Chairman FBR was created with the status of ex-officio Additional Secretary and Secretary Finance was relieved of his duties as ex- officio Chairman of the FBR. In order to remove impediments in the exercise of administrative powers of a Secretary to the Government and effective formulation and implementation of fiscal policy measures, the status of FBR as a Revenue Division was restored under the Ministry of Finance on October 22, 1991. However, the Revenue Division was abolished in January 1995, and FBR reverted back to the pre-1991 position. The Revenue Division continues to exist since from December 01, 1998. By the enactment of FBR Act 2007 in July 2007 the Central Board of Revenue has now become Federal Board of Revenue.
  4. 4. WHAT IS FBR? The Federal Board of Revenue (more commonly known by its initials as FBR) is a semiautonomous federal agency of Pakistan that is responsible for enforcing fiscal laws and collecting revenue for the government of Pakistan.
  5. 5. MISSION &VISION OF FBRP  Vision To be a modern, progressive, effective and creditable organization for optimizing revenue by providing quality service and promoting compliance with tax.  Mission Enhance the capability of the tax system to collect taxes through application of modern techniques, providing tax prayer assistance and by creating a motivated, dedicated and satisfied, professional work force.  Value Integrity -professionalism-Team work-courtesy-fairness-Transparency- Responsiveness
  6. 6. STRENGTH OF FBR  Collecting nearly 90% of tax revenue of the state  Contribution towards federal& provincial total revenue(tax and non tax) is around 65%  Revenue collected is sufficient to meet 75% to 85% of government expenditure needs  Generation of resource for smooth economic management of federal as well as provincial and local government  Keeping the economy vibrant  Monitors fiscal policy through tax incentive to encourage flow of FDI
  7. 7. FUNCTION OF FEDERAL BOARD OF REVENUE  Grand exemption from tax to the newly established industrial under taking &make rules for such exemption.  Make rules for appointment of valuers & other matters , related to other smooth functions.  Make rules for the recovery of tax from a taxpayer who is in a defaulted.  Make rules for tax credit or certain investments.  Certify an institution as conducting research in Pakistan .  Approve schemes regarding employee training .  Make rules for valuation & taxation of unexplained income or assets.  Issue circular to tax payers & officers of the board.  Issue advance ruling on application of a non resident.  Approve a security for the purposes of taxation of profit debts.
  8. 8. Secretary General Revenue Division/chairman , FBRMr. M Abdullah Yusuf 14-06-2006 23-07-2008
  9. 9. MEMBER (INLAND REVENUE - POLICY)  Deal with all policy matters, rules, regulations, interpretation of relevant laws and perform all allied functions, relating to Income Tax, Sales Tax, Federal Excise Duty, Income Support Levy, Capital Value Tax, Wealth Tax and Corporate Asset Tax; including: • Exemptions • Avoidance of Double Taxation Agreements  Formulate and present proposals relating to Income Tax, Sales Tax, Federal Excise Duty, Income Support Levy and Capital Value Tax for annual Finance Bill;  Liaise with international organizations/ agencies on matters relating to Inland Revenue;  Supervise all inter-ministerial issues relating to Inland Revenue;  Coordinate in matters relating to Inter Provincial Coordination Committee;  Process, short list and nominate officers of IRS for IRS specific training;  Exercise powers and perform functions of the Board under the provisions of Sales Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005, Income Tax Rules 2002, Federal Excise Rules 2005 and Sales Tax Rules 2006, as delegated by the Board:.  Perform any other duty or task assigned by the Chairman, FBR. Mr. Rehmatullah Khan Wazir
  10. 10. MEMBER (INLAND REVENUE - OPERATIONS)  Deals with revenue targets and manage operations relating to Inland Revenue;  Liaise with the Member Customs for WHT on imports;  Exercise powers and perform functions of the Board under the provisions of Sales Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005, Income Tax Rules 2002, Federal Excise Rules 2005 and Sales Tax Rules 2006, as delegated by the Board:.  Perform any other duty or task Monitor enforcement and Withholding Tax activities relating to Inland Revenue;  To Exercise powers and functions of the Board under section 214B of the Income Tax Ordinance, 2001. DR. MUHAMMAD IRSHAD
  11. 11. MEMBER (CUSTOMS)  Deal with all policy matters, rules, regulations, interpretation of relevant laws and perform all allied functions, relating to Customs, including:  Exemptions  Duty Drawbacks  Rebates  Changes/modifications in Pakistan Customs Tariff  Judicial/Legal Issues  Formulate and present proposals relating to Customs for annual Finance Bill;  Liaise with international organizations/ agencies on matters relating to Customs; Achieve revenue targets and manage operations relating to Customs;  Process, short list and nominate officers of Customs for Customs specific foreign training;  Supervise all inter-ministerial issues relating to Customs;  Exercise powers and perform functions of the Board under the provisions of Customs Act 1969, Customs Rules 2001 and Customs Notifications as delegated by the Board:  Perform any other duty or task assigned by the Chairman, FBR. Mr. Nasir Masroor Ahmad
  12. 12. MEMBER (TAXPAYERS AUDIT)  Plan and design audit procedures;  Evaluate tax audits for all domestic taxes;  Devise and implement Annual National Audit Plan; Prepare selection criteria for audit coverage of higher risk areas;  Exercise powers and functions of the Board under Sales Tax Act 1990, Income Tax Ordinance 2001 and Federal Excise Act, 2005, as delegated by the Board;  Perform any other duty of task assigned by the Chairman, FBR. Ms. Raana Seerat
  13. 13. MEMBER (ADMINISTRATION)  Deals with manage administration of Federal Board of Revenue;  Recruitment of officers/officials of FBR;  Transfer/posting of officers (BS-17 and above) of Inland Revenue and Customs in consultation with the concerned Line Members and with the approval of the Chairman  Transfer/Posting of Commissioners (Appeal) and Collectors (Appeal) in consultation with Member (Legal).  Short list and nominate officers of FBR for mandatory training such as MCMC, SMC, NMC and NDU;  Deal with promotion/ disciplinary/ litigation cases of FBR employees;  Manage record of FBR employees and HRIS;  Manage sanctioned strength of FBR employees;  Development budget and its expenditure under PSDP;  Manage current budget of FBR;  Administer expenditure budget of field formations;  Process all matters relating to official / gratis passports and Exit Control List (ECL);  Coordinate in matters relating to the National Assembly, Senate Standing Committees on Revenue and Finance, Cabinet Decisions and other Ministries / Divisions. Mr. Muhammad Majid Qureshi
  14. 14. CONT…..  Manage logistics, vehicles, library, buildings, internal/external security and procurements pertaining to their repairs/maintenance at FBR (HQ);  Process all matters relating to purchase/condemnation of vehicles at FBR (HQ) and field offices;  Process hiring, de-hiring and rent payment of office buildings at FBR (HQ) and field offices;  Process hiring, de-hiring and rent payment of residential accommodations for employees at FBR (HQ);  Process re-imbursement of medical claims of employees at FBR (HQ) and field offices;  Perform/initiate welfare activities for FBR employees;  Exercise powers and perform functions of the Board under the provisions of Customs Act 1969, Sales Tax Act 1990, Income Tax Ordinance 2001 and Federal Excise Act 2005, as delegated by the Board:  Perform any other duty or task assigned by the Chairman, FBR.
  15. 15. MEMBER (LEGAL)  Coordinate with Law Division and Attorney General of Pakistan;  Maintain and update list of pending cases before the Supreme Court and High Courts through Appeal Management Processing System and Litigation Management System;  Monitor performance of Task Forces constituted for the purpose of liquidation of sub-judice cases before the Supreme Court and High Courts;  Monitor performance of CIR (A) and Collector (A) and rationalize their work load;  Circulate important judgments of courts to the field offices and place the same on web;  Exercise powers and perform functions of the Board under the provisions of Customs Act 1969, Sales Tax Act 1990, Income Tax Ordinance 2001 and Federal Excise Act 2005, as delegated by the Board:.  Perform any other duty or task assigned by the Chairman, FBR.  To Exercise powers and functions of the Board under section 214B of the Income Tax Ordinance, 2001 in respect of Orders made by CIR (Appeals) Mr. Shaukat Ali
  16. 16. MEMBER (STRATEGIC PLANNING, REFORMS & STATISTICS)  Formulate revenue targets and do strategic planning for their achievements, in consultation with line members;  Provide analysis of data relating to collection of taxes i.e. Direct Taxes, Indirect Taxes, Customs Duty etc. and fiscal updates on revenue generating efforts;  Conduct studies, as suggested by other Wings, particularly sectoral analysis on tax contributions;  Coordinate with other financial institutions;  Perform any other duty or task assigned by the Chairman, FBR Dr. Muhammad Iqbal
  17. 17. MEMBER (HRM)  Process, short list and nominate officers for local and foreign training, other than mandatory training and IRS specific and Customs specific training;  Deal with all matters relating to Policies & Procedures for Performance-linked Bonus Schemes, Voluntary Severance Scheme, Job Descriptions and Organizational Structure, work force planning;  Conduct awareness campaigns regarding changes and issues relating to human resource;  Perform any other duty or task assigned by the Chairman, FBR. Mr. Rozi Khan Burki
  18. 18. MEMBER IT (INFORMATION TECHNOLOGY)  Prepare plan and strategy for FBR in the field of Information & Communication Technology (ICT).  Forecast and budget procurement of Software / Hardware / Networks, in coordination with PRAL;  Monitor and control software development and implementation by PRAL / external vendors and grant mandatory prior approval for initiating new or modifying / enhancing/ shelving existing software application;.  Liaise with other Wings of FBR for Business Need Analysis;  Oversee cleansing of existing data;  Supervise PRAL’s overall management, including administrative, financial and technical activities  Serve as an essential interchange for all communications between PRAL and FBR(HQ)/ its field offices;  Spearhead the process of developing the audit methodology to assure audit quality;  Exercise powers and perform functions of the Board under the provisions of Sales Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005, Income Tax Rules 2002, Federal Excise Rules 2005 and Sales Tax Rules 2006, as delegated by the Board:. Dr. Muhammad Iqbal
  19. 19. MEMBER (ACCOUNTING)  Deal with all matters relating to PAC/DAC on Audit Reports/Performance Audit reports/Special Studies Reports;  Deal with all matters relating to DAC on management/MFDAC (Memorandum for Departmental Accounts Committee) reports and Financial Attest of Financial Statements (Revenue Components) for each financial year;  Coordinate with Auditor General of Pakistan and Public Accounts Committee in matters relating to Audit and Vice Versa;  Perform any other duty or task assigned by the Chairman, FBR. Mrs. Seema Majid
  20. 20. OBJECTIVES OF REFORMS  Mobilize resources as per budgetary projection for improved economic management  Widen taxpayers base  Streamline tax and tariff tax rates  Improve voluntary compliance and strive to minimize adversarial relationship between taxpayers and tax collectors through:  Simplification of tax law s and procedures  Taxpayer friendly environment  Making the system more transparent and efficient  Honest Tax Administration
  21. 21. NEEDS FOR REFORMS  Stagnant Revenue  Narrow Tax base  Primitive and antiquated tax administration (cylindrical instead of functions)  Complexity of tax laws and arbitrariness in their applications  Relationships between tax payers and tax collectors largely adversarial
  22. 22. TAX REFORM INITIATIVES IN CHRONOLOGICAL ORDER o May 2001 : Syed Shahid Hussains committee Report o August 2001: IMF Mission Report o Nov 2001: The strategy Document on Tax Reform o Nov 2001: Presentation to the president of Pakistan o Dec 2001: Approval of Strategy Document o Feb 2002: Establishment of supervisory council o Jul 2002: Establishment of Cabinet Committee for Federal Revenues(CCFR)
  23. 23. RECOMMENDATION  Central Board of Revenue to have autonomy within the government structure  Supervisory council (now CCFR) to monitors and review CBR performance  Reorganized CBR and its fields offices on functional line  Merger of Income Tax ,Sales Tax ,Excise functions a step towards co-location and integration of internal Tax  Separate handling of large taxpayers  Improve HRM strategy with respect to induction, promotion, training, compensation of employees  Improve physical infrastructure and introduce one + window operations  Greater stress on taxpayers education, service and facilitation
  24. 24. INCOME TAX AUTHORITIES  The Income Tax ordinance 2001 specifies the provision relating to the various classes of tax authorities. I t also deals with the provisions regarding appointment a functions of these authorities. According to these provisions the following different classes of Income tax Authorities may be appointed:  Administrative authorities  Investigation and intelligence authorities  Training and research authorities  Internal audit authorities  Withholding taxes authorities and  Independent private agencies,.
  25. 25. DELEGATION OF POWERS Delegation of power means the assignment of the powers and functions of an authority to another authority. As for the sake of its implementation, the whole Ordinance revolves against the CIR. Thus there was a need to authorize delegation of his function and powers to his subordinates (covered under the term “ Officer of Inland Revenue.”The functions and powers of the commissioner may be delegation to an “Officer of Inland Revenue” in any of the following ways:  Delegation by Board The Board may assign all or any of the power and functions of the commissioner in respec of any person, class of person or area .  Delegation by Chief Commissioner The chief commissioner with the approval of Board may assign all or any of the Powers and functions of the commissioner in respect of any person class of persons or area.
  26. 26. CONT….. The CIR may delegate all or any of his power and functions under the income Tax Ordinance to any “Officer of Inland Revenue” however , he cannot delegate his power of delegation . It means the officer of inland revenue cannot further delegate the powers assigned to him.  The CIR shall not delegate the powers of amendment of assessment to an officer below the rank of Additio0nal Commissioner  The CIR may delegated his power to conduct the audit to a firm of Chartered Accountant or cost and Management Accountants.  The order regarding delegation may cover all or any of the persons, classes of persons or areas within the jurisdiction of the commissioner  The CIR has power to cancel or modify the order to issued by him for delegation of powers. Where under a delegation order an officer of inland revenue has exercised the powers and functions of CIR , it is shall be treated that such powers have been exercised and the functions been performed by the CIR .
  27. 27. GUIDANCE TO TAX AUTHORITIES During any proceeding under the Income Tax Ordinance the Commissioner or any Officer of “Inland Revenue” may be assisted guided to instructed by any authority to which he is subordinate or any other person authorized by Board in this behalf.
  28. 28. Website overview
  29. 29. www.fbr.gov.pk

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