Real time access to data: FBR to impose penalties on defaults by Nadra and FIA

ISLAMABAD: The Federal Board of Revenue (FBR) will impose Rs 25,000 penalty on first default and Rs 50,000 for each subsequent default on authorities/organizations including National Database and Registration Authority (Nadra) and Federal Investigation Agency (FIA), which would not give real time access to the Board for online sharing of data in their respective databases.

The FBR's instructions issued to the field formations here on Thursday through circular number 1 of 2020 revealed that the new sections, 56AB in the Sales Tax Act (STA) 1990 and section 47AB in the Federal Excise Act 2005, have been added whereby various authorities/organizations will be duty-bound to give real time access to the Board for online sharing of data in their respective databases. The purpose of the measure is to enhance FBR's capacity of detecting tax evasions, broadening tax bases, improving compulsory registrations in appropriate cases, encouraging and promoting voluntary compliance by "national concerted efforts". Following authorities have been added in the first place: National Database and Registration Authority; Federal Investigation Agency and the Bureau of Emigration and Overseas Employment; Islamabad Capital Territory and provincial and local land record & development authorities; Islamabad Capital Territory and provincial Excise and Taxation Departments; all electricity and gas supply and distribution companies and any other agency, authority, institution or organization notified by the Board.

The Board shall make arrangements for laying the infrastructure for real-time access to information and databases and aligning it with its own database in the manner as may be prescribed. Until real-time access to information and database is made available, such information and data shall be provided periodically in such form and manner as may be prescribed. All information received under the provisions under reference shall be used only for tax purposes and kept confidential. Penalty for default of this provision has also been provided, FBR added.

The FBR further stated that if a person who is required to share information under the newly inserted section 56AB, fails to do so in the manner as required under the law, he shall be liable to pay a penalty of twenty five thousand rupees for first default and fifty thousand rupees for each subsequent default. Section 56AB empowers the Board to have online access to databases of different organizations, the FBR added.

Copyright Business Recorder, 2020