AVN 66.45 Increased By ▲ 0.75 (1.14%)
BAFL 30.07 Increased By ▲ 1.08 (3.73%)
BOP 4.75 Increased By ▲ 0.16 (3.49%)
CNERGY 4.02 Increased By ▲ 0.27 (7.2%)
DFML 14.29 Increased By ▲ 0.03 (0.21%)
DGKC 43.98 Increased By ▲ 1.28 (3%)
EPCL 44.48 Increased By ▲ 2.31 (5.48%)
FCCL 11.95 Increased By ▲ 0.75 (6.7%)
FFL 4.98 Decreased By ▼ -0.06 (-1.19%)
FLYNG 6.14 Increased By ▲ 0.31 (5.32%)
GGL 10.41 Increased By ▲ 0.16 (1.56%)
HUBC 62.09 Increased By ▲ 1.94 (3.23%)
HUMNL 5.87 Increased By ▲ 0.13 (2.26%)
KAPCO 27.51 Increased By ▲ 0.62 (2.31%)
KEL 2.22 Decreased By ▼ -0.02 (-0.89%)
LOTCHEM 26.73 Increased By ▲ 0.55 (2.1%)
MLCF 22.52 Increased By ▲ 1.53 (7.29%)
NETSOL 86.60 Increased By ▲ 1.98 (2.34%)
OGDC 86.30 Increased By ▲ 0.40 (0.47%)
PAEL 11.38 Increased By ▲ 0.23 (2.06%)
PIBTL 4.29 No Change ▼ 0.00 (0%)
PPL 80.26 Decreased By ▼ -0.04 (-0.05%)
PRL 13.66 Increased By ▲ 0.98 (7.73%)
SILK 0.90 Decreased By ▼ -0.01 (-1.1%)
SNGP 41.92 Increased By ▲ 0.62 (1.5%)
TELE 6.29 Increased By ▲ 0.24 (3.97%)
TPLP 16.39 Increased By ▲ 0.52 (3.28%)
TRG 112.91 Increased By ▲ 2.41 (2.18%)
UNITY 14.42 Increased By ▲ 0.49 (3.52%)
WTL 1.20 Increased By ▲ 0.02 (1.69%)
BR100 4,075 Increased By 124 (3.14%)
BR30 14,525 Increased By 302.7 (2.13%)
KSE100 40,847 Increased By 1061.6 (2.67%)
KSE30 15,212 Increased By 411.4 (2.78%)
Follow us

ISLAMABAD: The Federal Board of Revenue (FBR) will be heavily relying on third-party databases including banks, National Database and Registration Authority (NADRA) and Securities and Exchange Commission of Pakistan (SECP) to detect tax evasion.

The FBR’s Inland Revenue Strategic Reform Plan for 2021-2025 launched Wednesday revealed that the public and private sector data can only be used to detect tax evasion with minimum human contact if it is in standard format and up to date, reflecting economic activity as soon as possible. When data is accessible without much time lag, it makes verification simpler and possible. Updated databases will significantly improve the effectiveness of using third-party data, reduce the cost of administration and facilitate taxpayers.

The report said that the important data-generating processes of the economy will be identified, and technological bridges created with public and private entities carrying out and managing transactions with IT systems capable of transmitting data to IRS systems. Initially the focus will be on property transactions by non-governmental agencies, banks, the NADRA, utility companies, the Securities and Exchange Commission of Pakistan (SECP) will be prioritized. The exchange of data will be real-time, or automatic periodic or electronic periodic. Software capacity will be developed to facilitate the automatic exchange of information, data warehousing and analysis.

The data centric administration will be developed through valuing the importance of data and adopting data-based decision making. We will improve our ability to manage existing data and expand our sources for data. The risk-based compliance management approach will be based on leveraging data to identify, prioritise, and action compliance risks, FBR said.

Data from other revenue authorities across the country, including Customs, Provincial Boards of Revenue, Excise and Taxation Departments and Provincial Revenue Authorities will be integrated with the IRS data and systems. The IRS will access data from these databases to conduct data-led assessments. The data will be used to define risk parameters for risk profiling. Backward linkages to customs risk management for goods clearance will also be provided, FBR said.

Technological bridges would be built across all tax databases to link taxpayers across taxes for flows of third-party information, along with findings of business analysis and risk management tools for broadening of tax base and effective audits. The consolidated tax profiles with information across all taxes will be made a part of the IRIS record for use in both broadening of tax base and meaningful auditing, it added.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Tax evasion: FBR relying on third-party databases

Alarm bells: SBP-held foreign exchange reserves plunge $923mn, now stand at mere $3.7bn

Imran Khan's arrest will create instability in country: President Alvi

Rupee plunges to record low in inter-bank market after nearly 10% fall

After Fawad's arrest, Imran says state cannot 'terrify us into submission'

KSE-100 increases over 1,000 points as Pakistan moves to revive IMF programme

14-member KP caretaker cabinet takes oath

PM Shehbaz reaffirms resolve to deepen economic, trade engagement with US

Pakistan to decide currency for Russia oil trade in March: Musadik Malik

Pakistan reviewing India’s Shanghai Cooperation Organisation invite: FO

Ishaq Dar has inflicted huge financial dent to Pakistan: Miftah Ismail