Riaz Academy
Federal Board of Revenue (FBR) Powers and Functions
Question: Define “Federal Board of Revenue”; explain its powers and functions in detail.
Answer:
Federal Board of revenue (FBR)
Introduction
The old name of federal
board of revenue (FBR) is central board of revenue (CBR). Income tax ordinance,
2001 uses the word ‘Board’ for FBR and CBR. Board is the highest tax authority
in Pakistan. It has the powers to exercise the general administration of income
tax ordinance, 2001. It is constituted under the federal board of revenue act,
2007.
board of revenue (FBR) is central board of revenue (CBR). Income tax ordinance,
2001 uses the word ‘Board’ for FBR and CBR. Board is the highest tax authority
in Pakistan. It has the powers to exercise the general administration of income
tax ordinance, 2001. It is constituted under the federal board of revenue act,
2007.
History
The central board of revenue
(CBR) was created on April 01, 1924 through the enactment of central board of
revenue act, 1924. In 1944, a full-fledged revenue division was established
under the Ministry of Finance. After independence, this arrangement continued
up to 31st August 1960 when on the recommendation of the Administrative
Re-organization committee, CBR was made an attached department of Ministry of
Finance. In 1974, further changes were made in the organization and
subsequently the post of chairman CBR was created.
(CBR) was created on April 01, 1924 through the enactment of central board of
revenue act, 1924. In 1944, a full-fledged revenue division was established
under the Ministry of Finance. After independence, this arrangement continued
up to 31st August 1960 when on the recommendation of the Administrative
Re-organization committee, CBR was made an attached department of Ministry of
Finance. In 1974, further changes were made in the organization and
subsequently the post of chairman CBR was created.
CBR to FBR
By the enactment of FBR Act
2007, in July 2007 the Central Board of revenue (CBR) has now become the
Federal Board of revenue (FBR).
2007, in July 2007 the Central Board of revenue (CBR) has now become the
Federal Board of revenue (FBR).
Organization of FBR
The federal Board of Revenue
presently comprises a Chairman and eleven members, appointed by the federal
Government as follows;
presently comprises a Chairman and eleven members, appointed by the federal
Government as follows;
I.
Three line members which
include Member (Direct taxes), Member (Sale Tax and federal Excise), and Member
(Customs)
II.
Four functional members are
Member Fiscal (Research and statistics), Member (Human Resource Management),
Member (Audit), and Member (Administration)
III.
Four support members include
Member (Legal), Member (Tax Policy & Reforms), Member (Information
Management System), and Member (Facilitation and Tax Education).
Head of Board—Chairman
In the existing setup, the
Chairman, FBR, being the executive head of the Board as well as secretary
revenue division has the responsibility for;
Chairman, FBR, being the executive head of the Board as well as secretary
revenue division has the responsibility for;
I.
Formulation and
Administration of fiscal policies
II.
Levy and collection of
Federal taxes, and
III.
Judicial function of hearing
of appeals.
Powers and Functions of FBR
1. Appointing Authority
The
Board may appoint as many Chief Commissioner Inland Revenue, Commissioner
Inland Revenue, Commissioner Inland Revenue (Appeals), Additional Commissioner
Inland Revenue, Deputy Commissioner Inland Revenue, Assistant Commissioner
Inland Revenue, Inland Revenue Officers, Inland Revenue Audit Officers, and
such other executive and ministerial officers and staff as may be necessary.
Board may appoint as many Chief Commissioner Inland Revenue, Commissioner
Inland Revenue, Commissioner Inland Revenue (Appeals), Additional Commissioner
Inland Revenue, Deputy Commissioner Inland Revenue, Assistant Commissioner
Inland Revenue, Inland Revenue Officers, Inland Revenue Audit Officers, and
such other executive and ministerial officers and staff as may be necessary.
2.
Appointment
of firms of Accountant
Appointment
of firms of Accountant
The
Board is empowered to appoint a firm of Chartered Accountant and Cost and
Management Accountant to conduct the audit of any person or firm. The scope of
such audit may vary from case to case.
Board is empowered to appoint a firm of Chartered Accountant and Cost and
Management Accountant to conduct the audit of any person or firm. The scope of
such audit may vary from case to case.
3.
Jurisdiction
Jurisdiction
The
Board, by an order may assign the functions and areas to Chief Commissioner
Inland Revenue, the Commissioner Inland Revenue, the Commissioner Inland
Revenue (Appeals) and to officers of Inland Revenue.
Board, by an order may assign the functions and areas to Chief Commissioner
Inland Revenue, the Commissioner Inland Revenue, the Commissioner Inland
Revenue (Appeals) and to officers of Inland Revenue.
4.
Delegation
of Powers
Delegation
of Powers
On
administrative ground, Federal Board of Revenue can delegate its powers to
Chief Commissioner Inland Revenue, and Commissioner Inland Revenue. This has
been done for the immediate action which is sometimes necessary in specific
situation.
administrative ground, Federal Board of Revenue can delegate its powers to
Chief Commissioner Inland Revenue, and Commissioner Inland Revenue. This has
been done for the immediate action which is sometimes necessary in specific
situation.
5.
Controlling authority
Controlling authority
FBR
is not only appointing authority but it directly control the working of Chief
Commissioner Inland Revenue, Commissioner Inland Revenue, Director General
Intelligence & Investigation, Director General Training and Research,
Assistant Commissioner and Deputy commissioner of Income Tax.
is not only appointing authority but it directly control the working of Chief
Commissioner Inland Revenue, Commissioner Inland Revenue, Director General
Intelligence & Investigation, Director General Training and Research,
Assistant Commissioner and Deputy commissioner of Income Tax.
6.
Formulation and administration of Fiscal policies
Formulation and administration of Fiscal policies
FBR
has the powers to formulate the fiscal policies for the country and then later
on implement these policies in accordance with the general rules of Income Tax
ordinance, 2001.
has the powers to formulate the fiscal policies for the country and then later
on implement these policies in accordance with the general rules of Income Tax
ordinance, 2001.
7. Levy and Collection of Federal taxes
FBR
is the highest taxation authority in any country, so the matters regarding the
tax implementation and collection is major act of FBR.
is the highest taxation authority in any country, so the matters regarding the
tax implementation and collection is major act of FBR.
8.
Appointment
of surveyor
Appointment
of surveyor
The
Board has powers to appoint any firm or private agency or company to carry out
survey of persons, class of persons, or about an area. The agency must have
orders in writing. Surveyors will collect all the information as required by
the Board.
Board has powers to appoint any firm or private agency or company to carry out
survey of persons, class of persons, or about an area. The agency must have
orders in writing. Surveyors will collect all the information as required by
the Board.
9.
Hearing of appeals
Hearing of appeals
FBR
has the powers to hearing of appeals by the tax payer or any other person which
is directly affected by any taxation officer. If the case involve any legal
point then the matter may referred to Appellate Tribunal.
has the powers to hearing of appeals by the tax payer or any other person which
is directly affected by any taxation officer. If the case involve any legal
point then the matter may referred to Appellate Tribunal.
10.
Promote
voluntary tax culture
Promote
voluntary tax culture
It is
the main function of the board to develop policies and programs to guide and
facilitate the tax payers, stakeholders and employees. Objective of this turn
is to promote voluntary tax culture in the country.
the main function of the board to develop policies and programs to guide and
facilitate the tax payers, stakeholders and employees. Objective of this turn
is to promote voluntary tax culture in the country.
11.
Grant approval to leasing
companies
Grant approval to leasing
companies
FBR
has the powers to grant approval to leasing companies and Modaraba companies
for their cases of tax concessions.
has the powers to grant approval to leasing companies and Modaraba companies
for their cases of tax concessions.
12.
Specify the method of
accounting
Specify the method of
accounting
The
methods of accounting related with different type of assets are different.
These methods can change the net income of a person or company. For tax
purposes there are certain methods which a person or company has to use in accordance
to taxation department instructions. These methods are specified by the FBR.
methods of accounting related with different type of assets are different.
These methods can change the net income of a person or company. For tax
purposes there are certain methods which a person or company has to use in accordance
to taxation department instructions. These methods are specified by the FBR.
13.
Make general rules of the organization
Make general rules of the organization
Make
the rules for carrying out efficient administration of the ordinance by
notification in the official gazette.
the rules for carrying out efficient administration of the ordinance by
notification in the official gazette.
14. Determine the procedures
for furnishing returns
for furnishing returns
Determine
the procedure for furnishing returns and other documents including on
electronic medium or issuing notices or levy default surcharge through
electronic medium.
the procedure for furnishing returns and other documents including on
electronic medium or issuing notices or levy default surcharge through
electronic medium.
15. Appoint income tax authorities
The
Board has the powers to appoint as many income tax authorities as possible in
the administration of the organization. These authorities include all the
officers of Inland Revenue.
Board has the powers to appoint as many income tax authorities as possible in
the administration of the organization. These authorities include all the
officers of Inland Revenue.
16. Authority of approval
The Board
may, by a general or special order, authorize the Chief Commissioner or the
Commissioner to grant approval in any case where such approval is required from
the
may, by a general or special order, authorize the Chief Commissioner or the
Commissioner to grant approval in any case where such approval is required from
the
Board
under any provision of this Ordinance
under any provision of this Ordinance
17.
Guidance
to income tax authorities
Guidance
to income tax authorities
In
the course of any proceedings under this ordinance, Board may guide and assist
any of his subordinate like Chief Commissioner or Commissioner of Inland
Revenue (Appeals). Any other taxation officer is guided and instructed by the
board where it may be necessary
the course of any proceedings under this ordinance, Board may guide and assist
any of his subordinate like Chief Commissioner or Commissioner of Inland
Revenue (Appeals). Any other taxation officer is guided and instructed by the
board where it may be necessary
18.
Condonation
of time limit
Condonation
of time limit
Where
any time or period has been specified under any of the provisions of the
Ordinance or rules made there-under within which any application is to be made
or any act or thing is to be done, the Board may, in any case or class of
cases, permit such application to be made or such act or thing to be done within
such time or period as it may consider appropriate
any time or period has been specified under any of the provisions of the
Ordinance or rules made there-under within which any application is to be made
or any act or thing is to be done, the Board may, in any case or class of
cases, permit such application to be made or such act or thing to be done within
such time or period as it may consider appropriate
19.
Power
of the Board to call for records
Power
of the Board to call for records
The
Board may, of its own motion, call for and examine the record of any organization
under this Ordinance or the rules made there-under for the purpose of
satisfying itself as to the legality of any decision or order passed therein
and may pass such order as it may think fit
Board may, of its own motion, call for and examine the record of any organization
under this Ordinance or the rules made there-under for the purpose of
satisfying itself as to the legality of any decision or order passed therein
and may pass such order as it may think fit
20.
To
promote voluntary Tax culture
To
promote voluntary Tax culture
To
promote voluntary tax compliance and to make the Board a service oriented
organization; and to implement comprehensive policies and programs for the
education and facilitation of taxpayers, stakeholders and employees, etc., in
order to develop the Board into a modern efficient authority
promote voluntary tax compliance and to make the Board a service oriented
organization; and to implement comprehensive policies and programs for the
education and facilitation of taxpayers, stakeholders and employees, etc., in
order to develop the Board into a modern efficient authority
21.
Adopt
modern technology
Adopt
modern technology
To
adopt modern effective tax administration methods, information technology
systems and policies in order to consolidate assessments; improve processes,
organize registration of tax payers, widen the tax base, and make departmental
remedies more efficient
adopt modern effective tax administration methods, information technology
systems and policies in order to consolidate assessments; improve processes,
organize registration of tax payers, widen the tax base, and make departmental
remedies more efficient
22. Human Resource Management
The ‘Board’ may, with the approval of Advisory Board, formulate human resources development and
management policies which may include career planning, evaluation for retention in
service, and other job and service
related matters like posting with the
companies or trust formed by the ‘Board’
management policies which may include career planning, evaluation for retention in
service, and other job and service
related matters like posting with the
companies or trust formed by the ‘Board’
To improve the productivity
through a comprehensive and effective human resource strategy
through a comprehensive and effective human resource strategy
23. Combat Corruption
To
take appropriate measures including internal controls to combat corruption
within the organizations under the Board and provide checks to ensure the
integrity of employees that is verified periodically through applicable
procedure which shall be made one of the criterions for promotion and
incentives
take appropriate measures including internal controls to combat corruption
within the organizations under the Board and provide checks to ensure the
integrity of employees that is verified periodically through applicable
procedure which shall be made one of the criterions for promotion and
incentives
24.
Any
other function assigned by the Federal Government
Any
other function assigned by the Federal Government
The
Board shall perform any other functions assigned by the Federal Government for
the purpose of implementation of the Income Tax Ordinance 2001.
Board shall perform any other functions assigned by the Federal Government for
the purpose of implementation of the Income Tax Ordinance 2001.