Inland Revenue officers: Uniform Inland Revenue Reward Rules 2021 issued

ISLAMABAD: The Federal Board of Revenue (FBR) has issued the uniform Inland Revenue Reward Rules 2021 for Inland Revenue officers including “informer,” or “whistleblower” who are not employees of the FBR.

These rules shall come into force with effect from January 01, 2021.

The FBR has rescinded Reward Rules, 1980; Sales Tax Reward Order and Unified Reward Rules, 2006.

According to the notification issued here on Friday by the FBR, the new rules have been issued in order to consolidate reward rules issued separately from time-to-time and to put in place a uniform incentives regime for detection of tax evasion, meritorious services, and any other outstanding performance, across the Inland Revenue field formations, detachments and the headquarters.

The Inland Revenue Reward Rules 2021 have been issued in pursuance to the Tax Administration Reforms culminating in merger of all inland taxes namely those imposed under The Income Tax Ordinance, 2001, The Sales Tax Act, 1990, The Federal Excise Act, 2006, and The Islamabad Capital Territory (Tax on Services) Ordinance, 2001, and the consequent creation of the Inland Revenue Service for the purpose of enforcement of and performance of functions thereof.

The FBR, at the close of every financial year, may give rewards to officers/officials in recognition of the meritorious services rendered by them during the year.

The amount of reward for meritorious services in no case will be less than three and more than six salaries in each single case.

The amount of reward for extraordinary performance in no case will be less than 12 and more than 24 salaries in each single case i.e. each officer/staff involved in the assigned task.

Following types of performance will be eligible for claim of reward under the Reward Rules: Detection and assessment/recovery of tax sought to be evaded; meritorious services and extraordinary performance and specified statutes.

The term “Meritorious Services” means and includes exceptional performance in any or a

combination of the following areas:- Exceeding budgetary targets through extra-ordinary planning and efforts; displaying exceptional results in the recovery of arrears; enlarging the base of tax-payers by adding large number of new taxpayers whose contribution to revenues would be substantial; exceptional performance in defending cases (by the Departmental Representatives) before the ATIR; displaying extraordinary devotion to duty and acumen towards making some original contribution.

An Informer/Whistleblower shall be entitled to a reward at the rate of 20% up to a maximum of Rs.5 million of the tax sought to be evaded in a single case, FBR added.

An Inland Revenue Welfare Fund shall be established for the welfare of the eligible persons under direct control and management of Member (Inland Revenue), FBR.

An amount equal to 10 per cent of the reward sanctioned under Rule 5 shall simultaneously be processed, approved and deposited in the Inland Revenue Welfare Fund.

Inland Revenue Operations, FBR, will administer these rules at the head office, and may issue instructions and guidelines for their

implementation across the board.

While these rules cover all unfiled reward claims on past and future case, all pending reward claims already filed shall continue to be governed by existing applicable rules as at the time of notification of these rules, FBR added.

Copyright Business Recorder, 2021