New tax body set up for assets stashed abroad

FBR also notifies setting up of two other directorates


Irshad Ansari March 29, 2019
FBR also notifies setting up of two other directorates. PHOTO: FILE

ISLAMABAD: The federal government has set up three new tax collection institutions – including the Directorate General of International Tax Operations to impose and collect taxes on undeclared offshore assets and income and bring illegal assets worth billions of rupees stashed abroad into the tax net.

According to sources, the other two institutions – the Directorate General of Input, Output Coefficient Organisation (IOCO) and Directorate General of Broadening of Tax Base (BTB) were set up earlier.

FBR official reveals reasons for revenue shortfall

Federal Board of Revenue’s (FBR) Shah Bano GM Khan is serving as the director general of the IOCO and another officer, Mir Badshah Khan Wazir, as the director general of BTB.

According to FBR officials, the step has been taken in view of administrative streamlining and though the two institutions were set up earlier, they did not have a budget or staff positions.

The FBR was operating the institutions using its existing executives and officers and many of the staff members were working without gazette notifications.

Without formal notification, neither any vacancies, nor any budget could be allocated.

The notification has now been released, FBR officials said, adding that formal budgeting for the new entities and approval of new vacancies will be possible now.

The powers of the institutions will also be determined.

Earlier, the IOCO director general was concerned with customs only but the one established now will work on inland revenue based on the sales tax law.

The Directorate General of the International Tax Operations has been set up in place of the Directorate General of Transfer of Pricing for which the government has also included a section in its second supplementary finance bill.

The FBR formally released three notifications on Friday. As per the first notification, the offices of the Directorate General of International Tax Operations has been set up with its headquarters in Karachi and offices in Lahore, Multan, Peshawar, Quetta and Islamabad.

As per second notification, the offices of the Directorate General of the IOCO have been set up in Islamabad, Lahore and Karachi as per section 30 (ddd) of the Sales Tax Act 1990.

The third notification pertains to the setting up of BTB offices in Karachi, Lahore and Islamabad. According to FBR, given the section in the second supplementary finance bill, the Directorate General of International Tax Operations will comprise three director generals and several directors, additional directors, deputy directors, assistant directors and other administrative and support staff.

Their appointment will be made through a gazette notification by FBR. The notification will also lay out the functions, limits and powers of the directorate general and its officers.

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