ISLAMABAD: The Federal Board of Revenue (FBR) has decided to integrate all financial data and economic transactions of 145 organisations including federal government/ semi-autonomous departments, provincial government departments, financial institutions and private institutions for the purpose of documentation of economy and broadening the tax base.
The FBR has issued an SRO 1771(I)/2023 to introduce draft amendments in the Income Tax Rules 2002 here on Tuesday.
The FBR will document economic transactions carried out by 145 organisations to assess actual income and tax potential of citizens and collect the due amount of taxes from them.
The purpose is to document economic transactions covering transactions for exchange or transfer of title or ownership of assets, goods or services involving economic value provided by one person to another person, a senior FBR official said.
In this regard, the FBR has directed these 145 organisations to integrate with FBR’s “real-time accessed data analysis repository (RADAR)” for providing real time access to information and database.
The organisations required to provide real time access to relevant information and database included State Bank of Pakistan (SBP), commercial banks, Pakistan Stock Exchange, investment banks, Non-Banking Financial Companies (NBFCs), micro-finance banks, Accountant General Pakistan Revenues, Military Accountant General, Rawalpindi Military Lands & Cantonment Headquarters, Rawalpindi and provincial revenue authorities/ boards, Association of Builders and Developers (ABAD), all Bahria Town Private Limited Companies, and all Defence Housing Authorities (DHAs).
The new procedure shall provide for real time access to information and database to the Board by the organisations. The FBR has also issued a list of agencies, authorities, institutions and organizations including their attached departments, divisions, wings, institutes, sub-offices, autonomous bodies by whatever name called, are required to integrate with the Board’s RADAR and shall furnish information under section l75A of the Income Tax Ordinance.
Every integrated organization shall integrate with Board’s RADAR not later than January 15,2024 or such date as notified for integration of such organization in order to provide real time access to information and database relating to economic transactions as carried out by any person with the or reported to the said integrated organization.
The “real-time accessed data analysis repository (RADAR)” means Common Transmission System or IT platform specifically designed, installed and integrated by the Board with the IT platform of the integrated organization for the purposes of real-time access to information and database.
Until real-time access to information and database is made available, such information and data shall be provided periodically in such form, manner and by such date as may be specified by the Board through instructions on case to case basis.
Every integrated organisation which is required to furnish information as specified in this chapter shall provide true, correct, authenticated and complete information, FBR said.
The integrated organisation which is found to have tampered with the IT platform or fails to integrate with the Board’ RADAR, or refuses to furnish the information there-under or furnishes false, incorrect, incomplete, or unauthenticated information, the principal accounting officer or the principal officer of such organization shall be personally responsible for such default and shall be liable to a penalty and/ or prosecution, in accordance with the relevant provisions of the Income Tax Ordinance.
The Board shall periodically conduct inspection of the integrated organization to ensure that the integrated organisation is complying with these rules, FBR added.
Copyright Business Recorder, 2023