ISLAMABAD: The Federal Board of Revenue (FBR) plans to gather financial information and economic activities from 145 organizations, which include government agencies, banks, and private companies. This is being done to keep better track of the economy and make sure more people and businesses pay their taxes.
ISLAMABAD: The Federal Board of Revenue (FBR) has issued SRO 1771(I)/2023 to propose amendments to the Income Tax Rules 2002. This move aims to document economic transactions conducted by 145 organizations, assess citizens’ actual income and tax potential, and ensure the collection of due taxes.
According to a senior FBR official, the objective is to document economic transactions involving the exchange or transfer of assets, goods, or services with economic value between individuals. To achieve this, the FBR has instructed these 145 organizations to integrate with the FBR’s “real-time accessed data analysis repository (RADAR)” to provide immediate access to information and databases.
The list of organizations required to provide real-time access includes the State Bank of Pakistan (SBP), commercial banks, Pakistan Stock Exchange, investment banks, Non-Banking Financial Companies (NBFCs), micro-finance banks, Accountant General Pakistan Revenues, Military Accountant General, Rawalpindi Military Lands & Cantonment Headquarters, Rawalpindi, provincial revenue authorities/boards, Association of Builders and Developers (ABAD), all Bahria Town Private Limited Companies, and all Defence Housing Authorities (DHAs).
The new procedure will enable the FBR to access information and databases in real-time from these organizations. The FBR has also provided a list of agencies, authorities, institutions, and organizations, including their attached departments and autonomous bodies, that are required to integrate with the Board’s RADAR and provide information under Section 175A of the Income Tax Ordinance.
Each integrated organization must integrate with the Board’s RADAR no later than January 15, 2024, or any notified date for integration. This is to ensure real-time access to information and databases related to economic transactions conducted with or reported to the integrated organization.
The “real-time accessed data analysis repository (RADAR)” refers to a Common Transmission System or IT platform specifically designed and integrated by the Board for real-time access to information and databases.
Until real-time access is available, organizations must provide information and data periodically as specified by the Board through case-specific instructions.
FBR emphasizes that every integrated organization must provide accurate, authenticated, and complete information. Organizations found tampering with the IT platform, failing to integrate with RADAR, refusing to provide information, or furnishing false or incomplete information will hold the principal accounting officer or principal officer personally responsible. They may face penalties and prosecution in accordance with the relevant provisions of the Income Tax Ordinance.
The Board will conduct periodic inspections of integrated organizations to ensure compliance with these rules.