Tax officials reluctant to utilise data available electronically

The tax officials of the Federal Board of Revenue (FBR) are reluctant to utilise the electronically available sales tax, income tax and customs duty data for the last three years to cross match information of key sectors and check all declarations of taxpayers on sales tax and direct taxes sides.
Tax experts told Business Recorder here on Wednesday that the FBR is unable to achieve the ultimate objective reforms to convince officials of Inland Revenue to utilise electronically available sales tax, income tax and customs duty data pertaining to last three years under the Integrated Tax Management System (ITMS). The Board has maintained authentic data of income tax, sales tax and customs duty in electronic format which could be effectively utilised for broadening the tax-base.
The system has maintained data for around four years, but electronic availability of authentic data is related to the last three years. Despite availability of electronic database, the tax officials are still reluctant to effectively utilise data for cross matching of information verifying sales and purchases.
Presently, tax officials have access to the live data of customs duty, income tax and sales tax, but the same has been rarely used by the tax officials in the field formations. It was the ultimate objective of reforms to ensure utilisation of the electronically maintained database by the tax officials.
So far, the tax officials have not fully utilised the information which could be ideally used for broadening the tax-base. This seemed to be lack of training, education and awareness among the tax officials for effective utilisation of the electronically maintained database under the ITMS.
Sources said that the fear of technology has also barred the tax officials from timely utilisation of the electronic data for discovering new taxpayers. This vital data can facilitate the tax department to verify sales/purchases of income tax and sales taxpayers.
For example, income tax returns could easily be matched with the corresponding sales tax declarations. There are endless avenues available to the tax officials to use electronically available sales tax, income tax and customs duty data, but results are not visible in the field formations. To a greater extent officials know what is happening in a specific sector, but delay in effective utilisation of electronic data has hampered the FBR's exercise to expand the tax net.
The profiling of the taxpayers has also been done by the department, but the same profiles have not been used by the tax officials through electronic system. Under the ITMS, electronic data of companies has been maintained since 2007 onwards, but the sales tax, income tax and customs related information has not been matched to broaden the tax-base. The data of companies has been electronically maintained for the last three years, but the same has not been effectively matched with the sales tax and income tax information for verification of declarations made by such companies.