Riaz Academy
Commissioner Inland Revenue – Powers and Functions
Question: Define “Commissioner Inland Revenue”; explain its powers and functions in detail.
Answer:
Commissioner Inland Revenue
A person appointed
officially for a particular zone to supervise the collection of taxes, including income tax, capital gains tax and corporation tax.
officially for a particular zone to supervise the collection of taxes, including income tax, capital gains tax and corporation tax.
Commissioner
Inland Revenue has a very important place in income tax department. He has both
executive and judicial powers. He oversees the performance and functions of all
the income tax authorities working under his jurisdiction as subordinate to
him. Usually he is appointed as in charge of a revenue zone
Inland Revenue has a very important place in income tax department. He has both
executive and judicial powers. He oversees the performance and functions of all
the income tax authorities working under his jurisdiction as subordinate to
him. Usually he is appointed as in charge of a revenue zone
Appointment
Federal Board of Revenue
appoints the Commissioner
Inland Revenue. He is appointed for a specific area called revenue zone. Some
time he is appointed without any territory limits
appoints the Commissioner
Inland Revenue. He is appointed for a specific area called revenue zone. Some
time he is appointed without any territory limits
Subordination
Following income tax authorities are
subordinate to CIR;
subordinate to CIR;
·
Additional Commissioner
Inland Revenue
Additional Commissioner
Inland Revenue
·
Assistant Commissioner Inland Revenue
Assistant Commissioner Inland Revenue
·
Deputy Commissioner Inland Revenue
Deputy Commissioner Inland Revenue
·
Any other taxation officer
Any other taxation officer
Powers and functions of Commissioner Inland
Revenue:
Revenue:
1.
Determine
jurisdiction
Determine
jurisdiction
The CIR has
the powers to determine specific jurisdiction to his subordinates and assign
works to them
the powers to determine specific jurisdiction to his subordinates and assign
works to them
2.
Employee’s
tax arrangements
Employee’s
tax arrangements
Allow an
employee to pay tax on his retirement payments and golden handshake as per
normal procedure or pay tax on the basis of average rate of tax based on three
preceding tax year
employee to pay tax on his retirement payments and golden handshake as per
normal procedure or pay tax on the basis of average rate of tax based on three
preceding tax year
3. Method of accounting
Allow a
person or firm to change his method of accounting as required by the income tax
ordinance 2001.
person or firm to change his method of accounting as required by the income tax
ordinance 2001.
4.
Stock
valuation method
Stock
valuation method
Permit the
companies to change the stock valuation method in accordance with the income
tax ordinance 2001
companies to change the stock valuation method in accordance with the income
tax ordinance 2001
5. Special tax year
Companies
can change their normal tax year into special tax year after got the approval
of Commissioner
Inland Revenue
can change their normal tax year into special tax year after got the approval
of Commissioner
Inland Revenue
6.
Impose
conditions
Impose
conditions
Impose
different conditions while permitting the companies to change their normal tax
year into special tax year
different conditions while permitting the companies to change their normal tax
year into special tax year
7. Allow tax credits
Distribute,
apportion or allocate incomes, deductions or tax credits in respect of any
transaction between associates
apportion or allocate incomes, deductions or tax credits in respect of any
transaction between associates
8.
Delegation
of power
Delegation
of power
On
administrative grounds, CIR has power to delegate any of his power or function
to his subordinate. He can also cancel, modify and change the powers so
delegated
administrative grounds, CIR has power to delegate any of his power or function
to his subordinate. He can also cancel, modify and change the powers so
delegated
9.
Can
rectify mistakes
Can
rectify mistakes
When there
is any error or mistake in any order passed by his subordinate authority, he
has powers to revise such orders on his own or on the notice of tax payer
is any error or mistake in any order passed by his subordinate authority, he
has powers to revise such orders on his own or on the notice of tax payer
10. Require a person to
furnish his wealth statement
furnish his wealth statement
CIR can
order any person or firm to furnish his wealth statement for the assessment
process.
order any person or firm to furnish his wealth statement for the assessment
process.
11. Extend the time for filing a return
Commissioner
of Inland Revenue has the powers to extend the time duration for filing the
returns by tax payers. If the tax payer has any genuine reason to delay the
furnishing of returns
of Inland Revenue has the powers to extend the time duration for filing the
returns by tax payers. If the tax payer has any genuine reason to delay the
furnishing of returns
12. Make an amended
assessment order
assessment order
CIR has the
powers to make amended assessment of the tax payer about the data which is
provided by the tax payer.
powers to make amended assessment of the tax payer about the data which is
provided by the tax payer.
13. Can modify the original orders
Commissioner
of Inland Revenue can modify the original order if the orders of the Tribunal
or the High Court are changed at the higher appellate forum
of Inland Revenue can modify the original order if the orders of the Tribunal
or the High Court are changed at the higher appellate forum
14. Take
necessary action
necessary action
CIR has the
powers to take all necessary and appropriate actions for recovery of tax from a
tax payer
powers to take all necessary and appropriate actions for recovery of tax from a
tax payer
15. Tax from the liquidator
Commissioner
of Inland Revenue can notify and recover the tax from the liquidator of a
Company, which has gone into liquidation
of Inland Revenue can notify and recover the tax from the liquidator of a
Company, which has gone into liquidation
16. Issue an exemption
certificate
certificate
Commissioner
of Inland Revenue has the powers to exempt a certain person or class of persons
from the tax. The exemption certificate has been issued by the CIR on behalf of
the Federal Board of Revenue
of Inland Revenue has the powers to exempt a certain person or class of persons
from the tax. The exemption certificate has been issued by the CIR on behalf of
the Federal Board of Revenue
17. Extend the period for
filing different statements
filing different statements
CIR has such
kinds of authority in which he can extend the time period for filing the
different statements if there is some genuine reason behind the delay
kinds of authority in which he can extend the time period for filing the
different statements if there is some genuine reason behind the delay
18. Enter into premises
Commissioner
of Inland Revenue can enter into any premises for inspection of the data
provided in the tax returns. CIR can search the premises and can acquire any
kind of relevant data
of Inland Revenue can enter into any premises for inspection of the data
provided in the tax returns. CIR can search the premises and can acquire any
kind of relevant data
19. Issue
notice in order to obtain evidence
notice in order to obtain evidence
Commissioner
of Inland Revenue is the chief of any zone allotted to him by the FBR. He can
issue notice to relevant persons in order to obtain necessary information and
important evidence
of Inland Revenue is the chief of any zone allotted to him by the FBR. He can
issue notice to relevant persons in order to obtain necessary information and
important evidence
20. Select any person for
audit
audit
CIR can
select any person to conduct his audit in order to check the fairness and the
reliability of the documents provided by that person
select any person to conduct his audit in order to check the fairness and the
reliability of the documents provided by that person
21.
Appoint a translator
Appoint a translator
Commissioner
of Inland Revenue approve a person as translator in case the accounts, etc; are
kept by a tax payer in a language other than Urdu or English
of Inland Revenue approve a person as translator in case the accounts, etc; are
kept by a tax payer in a language other than Urdu or English
22. Impose penalties
Commissioner
of Inland Revenue can impose penalties on any person for default or not submit
his returns
of Inland Revenue can impose penalties on any person for default or not submit
his returns
23. Initiate prosecution
CIR has the
powers to initiate prosecution against the tax payers for offences committed by
them
powers to initiate prosecution against the tax payers for offences committed by
them
24. Impose default
surcharge
surcharge
Commissioner
of Inland Revenue can impose the surcharge tax to the tax payers if they fails
to pay the tax by due date.
of Inland Revenue can impose the surcharge tax to the tax payers if they fails
to pay the tax by due date.
25. Appoint any taxation officer
Commissioner
of Inland Revenue can appoint any of his subordinate officers with the approval
and consent of the Federal Board of Revenue
of Inland Revenue can appoint any of his subordinate officers with the approval
and consent of the Federal Board of Revenue
26. Appoint expert for
valuation
valuation
Commissioner
of Inland Revenue has the powers to appoint an expert for the purposes of
valuation, audit etc
of Inland Revenue has the powers to appoint an expert for the purposes of
valuation, audit etc
27. Authorize a person
CIR has the
power to authorize any person to maintain the prescribed records, books,
accounts, etc
power to authorize any person to maintain the prescribed records, books,
accounts, etc