ISLAMABAD: The Federal Board of Revenue (FBR) has delayed issuance of three key notifications dealing with the documentation of economy, withholding agents and integration of databases and financial transactions.
These three major documentation measures are related to the integration of financial data and transactions of 145 organisations, documentation of withholding agents’ transactions and online integration of businesses.
The draft rules (SRO 1771(l)2023, SRO 1846(I)/2023 & SRO1845 (l)2023) of all three measures were issued last month, but their final notifications have not been issued by the FBR.
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This means that all these documentation measures have no legal backing till issuance of the final notifications, tax experts added.
The first SRO 1771(l) 2023 was issued on December 5, 2023 which was related to the draft rules on the real time access to information and database to the Board by the integrated organisations.
On December 5, the FBR had given seven days to the stakeholders for submission of comments on the draft rules for further amendments in the Income Tax Rules, 2002.
Every integrated organisation shall integrate with Board’s RADAR not later than January 15, 2024 or such date as notified for integration of such organisation 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 organisation.
The final notification pertaining to the RADAR’s rules has yet not been issued by the FBR.
The second SRO 1846(I)/2023 was issued on December 22, 2023 for documenting transactions of withholding agents. The draft of the SWAPS rules was issued for all withholding agents. The notified SWAPS agents shall fulfill requirements and obligations as prescribed under the procedure.
On December 22, the FBR had given seven days to the stakeholders for submission of comments on the draft rules for further amendments in the Income Tax Rules, 2002.
A notified SWAPS agent shall install and integrate such fiscal electronic device and software as approved by the Board for carrying out any transactions liable to withholding tax in the mode and manner prescribed in the procedure.
So far, the FBR has not issued any final notification on the draft rules issued under the SRO 1846(I)/2023.
Copyright Business Recorder, 2024