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