Define “Commissioner Inland Revenue”; explain its powers and functions in detail.
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.
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
Federal Board of Revenue appoints the Commissioner Inland Revenue. He is appointed for a specific area called revenue zone. Sometime he is appointed without any territory limits
Following income tax authorities are subordinate to CIR;
- Additional Commissioner Inland Revenue
- Assistant Commissioner Inland Revenue
- Deputy Commissioner Inland Revenue
- Any other taxation officer
Powers and functions of Commissioner Inland Revenue:
- Determine jurisdiction
The CIR has the powers to determine specific jurisdiction to his subordinates and assign works to them.
- 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.
- Method of accounting
Allow a person or firm to change his method of accounting as required by the income tax ordinance 2001.
- Stock valuation method
Permit the companies to change the stock valuation method in accordance with the income tax ordinance 2001.
- Special tax year
Companies can change their normal tax year into special tax year after got the approval of Commissioner Inland Revenue.
- Impose conditions
Impose different conditions while permitting the companies to change their normal tax year into special tax year.
- Allow tax credits
Distribute, apportion or allocate incomes, deductions or tax credits in respect of any transaction between associates.
- 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.
- 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
- Require a person to furnish his wealth statement
CIR can order any person or firm to furnish his wealth statement for the assessment process.
- 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.
- Make an amended assessment order
CIR has the powers to make amended assessment of the tax payer about the data which is provided by the tax payer.
- 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.
- Take necessary action
CIR has the powers to take all necessary and appropriate actions for recovery of tax from a tax payer.
- 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.
- Issue an exemption 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.
- Extend the period for 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.
- 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.
- Issue 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.
- Select any person for 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.
- 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.
- Impose penalties
Commissioner of Inland Revenue can impose penalties on any person for default or not submit his returns
- Initiate prosecution
CIR has the powers to initiate prosecution against the tax payers for offences committed by them.
- Impose default surcharge
Commissioner of Inland Revenue can impose the surcharge tax to the tax payers if they fails to pay the tax by due date.
- 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
- Appoint expert for valuation
Commissioner of Inland Revenue has the powers to appoint an expert for the purposes of valuation, audit etc.
- Authorize a person
CIR has the power to authorize any person to maintain the prescribed records, books, accounts, etc.