Allocation of UWIN to withholding agents: FBR Conference decision irks tax experts

Tax experts have shown surprise over the decision of the Chief Commissioner's Conference of the Federal Board of Revenue (FBR) for allocation of Unique Withholding Identification Number (UWIN) to withholding agents when the FBR is moving towards the unification of all tax numbers including National Tax Numbers (NTNs) and Sales Tax Registration Numbers (STRNs) into a single identifier.
It is learnt here on Thursday that the FBR has issued instructions to the Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) dated November 24, 2011 on the monitoring of the withholding taxes. According to the FBR's instructions, FBR Member Inland Revenue (IR) apprised the Chief Commissioner's Conference about the importance of monitoring of withholding taxes as it contributes 60 percent of the revenue. FBR Member Enforcement and Accounting (E&A) highlighted the need for proper registration of Income Tax and Sales Tax Withholding Agents. Detailed discussion was made for improving this system and the FBR decided that the withholding agents should be assigned a unique and distinctive Withholding Identification Number.
Secondly, the audit of prominent/major withholding agents to be conducted. Thirdly, the prescribed monthly proformas to be developed to gauge the performance, FBR's instructions added. When contacted, a tax expert said that the FBR has already issued a sales tax notification in the past to substitute the sales tax registration numbers (STRNs) with the National Tax Numbers (NTNs). The SRO.610(I)/2010 has clearly amended the Sales Tax Rules, 2006 to substitute the "Sales Tax Registration Number" or "Registration Number", with the "National Tax Number". This SRO.610(I)/2010 was made effective from July 1, 2010, but it was not implemented in its letter and in spirit. Even till day NTN and STRN are simultaneously used by the taxpayers.
However, the proposal to introduce another identification number solely for withholding agents is apparently mismatch with the earlier stance of the Board. The allocation of the special number for withholding agents seemed to be not line with the SRO.610(I)/2010.
The FBR wanted to use the computerised national identity card (CNIC) numbers of the taxpayers as common identifier for maintenance of a national database pertaining to sales tax and income tax departments. The allocation of CNICs would help the tax authorities in obtaining the records of the taxpayers carrying out business activities under different STRNs and NTNs. This is a step towards integration and sharing of information using the concept of 'unified taxpayer identification'. The CNICs would be used as the integrator and common identifier for sales tax and income tax purposes. Similarly, all companies would operate under a single NTN.
The 'Single Identifier Numbers' (SINs) have to be allocated to all the taxpayers, who are presently using different sales tax registration numbers and NTNs, if any. The corporate entities, multinational companies and Association of Persons (AOPs) would only use NTNs for carrying out all income tax and sales tax related business activities. Taxpayers falling within the 'individuals' category would use CNIC number as 'unique identification number', tax experts added.