ISLAMABAD: The Federal Board of Revenue (FBR) plans to depute District Taxation Officers Inland Revenue across Pakistan to increase its access to un-documented areas, local districts and markets to register new taxpayers and improve tax compliance under the documentation drive.

Sources told Business Recorder that for the first time, the FBR will exercise powers under the income tax law to use District Taxation Officer Inland Revenue for the purpose of broadening the tax base. The enforcement in the filed formations is expected to be carried out with the help of these officers.

The FBR will also require additional resources to fully utilise the concept of district taxation officers for expanding the tax net and enforcement at the district/ Tehsil level.

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According to the sources, the FBR is seriously considering to activate the District Taxation Officer Inland Revenue in those areas where direct access of the Regional Tax Offices (RTOs) is limited.

There are many adjacent areas to the RTOs where the powers, jurisdiction and physical presence of the Inland Revenue officers are limited.

The FBR is expected to activate the district taxation officers for the physical presence of the FBR in local districts for discovering new taxpayers, registration and documentation and increase tax collection from the under-reported areas, as well as, improve tax compliance.

Under section 208 of the Income Tax Ordinance 2001, the FBR may appoint as many Chief Commissioners Inland Revenue, Commissioners Inland Revenue, Commissioners Inland Revenue (Appeals), Additional Commissioners Inland Revenue, Deputy Commissioners Inland Revenue, Assistant Commissioners Inland Revenue, Inland Revenue Officers, Inland Revenue Audit Officers, District Taxation Officer Inland Revenue, Assistant Director Audit, Superintendents Inland Revenue, Inspectors Inland Revenue, Auditors Inland Revenue and such other executive or ministerial officers and staff as may be necessary.

Under section 209 (jurisdiction of income tax authorities) of the Income Tax Ordinance, the FBR or the Chief Commissioner may, by an order, confer upon or assign to any officer of Inland Revenue all or any of the powers and functions conferred upon or assigned to the Commissioner, in respect of any person or persons or classes of persons or areas as may be specified in the order.

In line with section 178 (assistance to Commissioner), every Officer of Customs, Provincial Excise and Taxation, District Coordination Officer, District Officers including District Officer – Revenue, the Police and the Civil Armed Forces is empowered and required to assist the Commissioner in the discharge of the Commissioner’s functions under the Income Tax Ordinance.

Copyright Business Recorder, 2023


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Arif Oct 09, 2023 09:46am
I am sure DTO are smiling at the prospects of filling their own pockets rather than the Treasury.
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Tariq Qurashi Oct 09, 2023 12:02pm
Use access to databases on international travel, telephone bills, electricity bills, car purchases, property ownership, property transfers etc. to help detect potential tax payers who are avoiding paying taxes. Asking the DTO's to help seems a rather old fashioned and ineffective approach. Also give the each tax officer a target for finding new tax payers, award them if the meet their targets, and chastise them if they don't.
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Mustafa Oct 09, 2023 12:50pm
We should start to introduce digital rupee .. payments only via bank cards ... no more cash - no more problems ...
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Kureshi Oct 09, 2023 01:34pm
Good move Please also make sure that all the high value vehicle owners in the Country are tax payers. Data may very easily be obtained from motor vehicle registration authorities from all over the country.
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Muhammad Oct 09, 2023 09:31pm
@Mustafa, It can't be done with existing telecommunication infrastructure. Banks systems can't handle that much users, currently.
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Ghulam Oct 10, 2023 10:29pm
All hunting methods for new tax prayers or all audits of existing tax prayers in Pakistan is nothing but to grease the FBR's personnel only!!!!!! If you allow people to pay their tax on their honest calculations with a guarantee of no audit at all. The tax payer can be doubled every year. Yearly return should be of only four lines i.e. 1: Total yearly income 2: Total yearly costs 3: Net yearly profit 4: Net tax payable People could do all themselves without tax lawyers.
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