ISLAMABAD: The Federal Board of Revenue (FBR) has given legal backing to the Directorate General of Compliance Risk Management (CRM) to start working on risk profiles of the leading sectors of the economy.
In this connection, the FBR has issued a notification here on Monday.
The major initiative of the FBR would conduct risk profiling of key sectors to check registration, filing, reporting, and tax payments.
FBR officials informed that the detailed sectoral studies will be conducted and sectoral benchmarks will be established for inputs, outputs, accounting ratios, energy use, value addition, and profit ratios. These studies and benchmarks will be used to collect sector-specific information in the tax returns; determine the risk profile of the taxpayer and identify tax gaps and risk areas in different sectors, they added.
In exercise of the powers conferred under sub-section (2) of Section 2301 of the Income Tax Ordinance, 2001, read with Sections 207, 208 and sub-sections (1) and (2) of Section 209 thereof and in pursuance of functions, jurisdiction and powers on the Directorate General of CRM, notified vide SR0 1796(1)2022 and approval of Board-in-Council, the Competent Authority has approved establishment of the Directorate General of CRM,” notification said.
The Director General of the directorate will exercise powers of the Chief Commissioner and the directors of the new directorate would exercise the powers of the Commissioners Inland Revenue.
According to the details, the directorate shall develop risk profiles on the main segments and sectors related to the four pillars of compliance (registration, filing, reporting, and payment) to be included in the risk register. This would be required at least quarterly and annually.
It would have the mandate for the creation and updation of the risk register and data collection (both internal and external sources) through an integrated system with the Information Technology Wing of the FBR for the purpose of the creation of an indigenous data bank.
It would conduct environmental scanning, research and studies of approved compliance topics.
The directorate would be engaged in the collection of risk evaluation reports from risk owners (field formations) based upon taxpayer’s segments at all four compliance levels (registration, filing, correct reporting, payment and collection) on a quarterly and annual basis and update of risk portal, FBR added.
Copyright Business Recorder, 2022