FBR to get data of 40,000 wealthy persons from Nadra

The Federal Board of Revenue (FBR) will acquire more data from National and Database Registration Authority (Nadra) on Monday for bringing at least 30,000 to 40,000 wealthy persons into documented regime by June 2011. Sources told Business Recorder here on Saturday that an important meeting between FBR and Nadra would be held on April 4, 2011 to collect more third-party information for issuance of notices to wealthy persons.
In the first phase of documentation, at least 30,000 to 40,000 persons would be documented under the on-going exercise to bring 0.7 million persons into the tax net. By June 2011, the FBR will give a clear and loud message that about 30,000 wealthy persons have been documented and non-compliant persons would have to face legal action under the provisions of the Income Tax Ordinance 2001.
According to sources, it is practically not possible to expand the tax net without authentic information of the taxpayers to be acquired from the Nadra. In this regard, the FBR will persuade Nadra to cooperate for provision of maximum information for continuation of the on-going documentation exercise. At present, the FBR is equipped with limited data where computerised national identity card numbers (CNICs) have been used to wealthy persons operating out of the tax net.
Meanwhile, it is learnt that the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) would present the list of 1500-2000 wealthy persons, who would be brought in the documented regime, in the upcoming meeting of the Sub-Group on Broadening the Tax Base of the Tax Reform Co-ordination Group (TRCG) on April 12, 2011. In this connection, the FBR on Saturday issued instructions to all Directors-General of LTUs and RTOs to issue latest data of wealthy persons to whom notices were served under Income Tax Ordinance 2001. The meeting, to be convened on April 5, has been postponed and now it would take place on April 12, 2011.
Sources said that the LTUs and RTOs would update the FBR about their on-going exercise of notices issuance under section 114 and 122 (c ) of the Income Tax Ordinance 2001 to the undocumented persons. The performance review would be conducted to check whether third-party data has been effectively utilised for bringing 1500-2000 persons into the tax net. So far, the Specialised Units of the Directorate General of Broadening the Tax Base has started issuing notices to potential persons with the help of Nadra database. The performance would be thoroughly reviewed by the Sub-Group on Broadening the Tax Base of the TRCG on April 12, 2011.
Details showed that the 4th meeting of the Tax Reform Co-ordination Group was held last month chaired by Dr Abdul Hafeez Sheikh Minister of Finance where strategy to broaden the tax-base was discussed threadbare. FBR Chairman Salman Siddiqui and Director General Broadening the Tax Base Shahid Hussain Asad shared salient features of the FBR''s BTB campaign. The FBR has informed the policy makers that the Directorate General of Broadening the Tax Base (BTB) has the core function of newly created Directorate General of Intelligence and Investigation Inland Revenue. The dedicated BTB Units have already been created by all RTOs under a unified standard operating procedure (SOP) devised by the said DG. The key performance indicators (KPIs) for the performance evaluation of the BTB Units have been evolved and circulated to the field formations.
According to the FBR, all BTB related information and the data would be owned, processed and utilised by the newly created units, which are the main stakeholders in this whole campaign. Media campaign has also been launched to supplement the BTB initiatives. Under the directions of the Finance Minister, a sub-group, headed by FBR Chairman and comprising of 10 members, was formed for further deliberations and consensus-based actions. The first meeting of all stakeholders would be held on April 5, 2011 at the FBR Headquarters and all Chief Commissioners have been directed to join the meeting.