RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has validated all the actions against tax evaders/dodgers taken by the Director General Intelligence and Investigation Inland Revenue (DGI&IIR) or specified authorities including Chief Commissioner of Inland Revenue and other IR officers.

The FBR here on Monday issued budgetary instructions-2018 to the Chief Commissioners and Chief Collectors of Customs on sales tax and federal excise duty measures introduced through Finance Act 2018.

According to the FBR’s budget instructions, section 74A of the Sales Tax Act, 1990 inserted through Finance Act, 2017 pertaining to validation of notifications, orders suffering from any procedural infirmity has been amended to provide validation to all notifications and orders issued in exercise of powers conferred upon the federal government under various provisions of the Sales Tax Act, 1990. Through amendment made in section 74A of the Sales Tax Act, 1990, validation has been granted to all notifications and orders issued before the commencement of Finance Bill, 2018. Likewise, validation has also been granted to all the actions taken by the Director General Intelligence and Investigation-IR or authorities specified in section 30 of the Sales Tax Act 1990.

When contacted, a tax expert said that authorities specified in section 30 of the Sales Tax Act 1990 included Chief Commissioner of Inland Revenue; a commissioner of Inland Revenue; a commissioner of Inland Revenue (Appeals); an Additional commissioner of Inland Revenue; a Deputy Commissioner of Inland Revenue; District Taxation Officer Inland Revenue; an Assistant Commissioner of Inland Revenue; Assistant Director Audit Inland Revenue; an Inland Revenue Officer; a Superintendent Inland Revenue; an Inland Revenue Auditor Officer; an inspector Inland Revenue and an officer of Inland Revenue with any other designation. The Chief Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals) shall be subordinate to the Board and Commissioner Inland Revenue shall be subordinate to the Chief Commissioner Inland Revenue, he added.

The FBR said that a new section 11B has been introduced in the Sales Tax Act, 1990 to provide for giving appeal effect to the order of an Appellate Authority. Such an appeal effect order has to be issued within one year from the end of the financial year in which the order of the Appellate Authority is received. Field formations are requested to comply with the provisions of section 11B of the Sales Tax Act, 1990.

The FBR said that a new proviso has been added after sub-section (2) of section 25 of the Sales Tax Act, 1990 stipulating conduct of audit only once in every three years.

For posting of Inland Revenue Officers under 40B of the Sales Tax Act, 1990, the section 40B of the Sales Tax Act, 1990 has been amended to withdraw powers from the Chief Commissioners to post officers of Inland Revenue to the business premises of registered persons and these powers will henceforth rest with the Board. Likewise, proviso and explanation to section 40B have also been omitted meaning thereby that powers of Commissioners Inland Revenue to post officers to the business premises to monitor production or sale of goods and stock position have also been withdrawn, the FBR said.

The FBR has explained provision relating to the payment of tax to qualify for automatic stay. The FBR said that the condition of payment of 25% of the amount of tax involved to qualify for automatic stay against recovery till disposal of appeal by the Commissioner (Appeals) has been reduced to 10% through amendment made in section 48 of the Sales Tax Act, 1990. Field formations are requested to adhere to this provision and do not initiate recovery proceedings till disposal of appeal by the Commissioner (Appeals) in those cases where 10% of the amount of tax involved has been paid, the FBR added.