Thursday, 18 August 2022
Trending
BUDGET

The KTBA Proposed the FBR to separate the tax fraud investigation

Karachi Tax Bar Association (KTBA) proposed to the Federal Board of Revenue (FBR) to separate tax fraud investigations from normal audit and assessment.

The KTBA urged to establish special directorate to audit of cases involving tax fraud. KTBA proposed amendment in different tax law provisions. If the tax officer determined that the registered person is involved in tax fraud. The case is moved to the special directorate for further investigation with criminal proceeding.

The Karachi Tax Bar Association is of the view that this difference between registered law enforcers and those engaged in criminal activities will restore confidence in real taxpayers and create instability against tax evasion.

KTBA proposed that a new subsection be introduced where time limit of one year to conclude such audit proceeding in line with the direction of the Supreme Court of Pakistan. Time limitation in all situations should be extended up to 365 days and the time limit for condonation by the officers of inland revenue should be extended up to 700 days as there is no loss of revenue involved.

Karachi Tax Bar Further Proposals

Proposed for adjustment of sales tax refund with the income tax liabilities and vice-versa. In order to facilitate the registered persons in managing there funds.

The Karachi Tax Bar Association (KTBA) proposed reintroduction of tax credit. Saying that tax credit on 90% sales should extend to persons making 90% of purchases from persons registered under the Act.

KTBA recommended to reduce the corporate rate of tax up to 25% and gradually decreasing 1% every year. The rate of tax on small companies should also gradually reduce to 15%.

Proposal to reduce minimum tax

There is a proposal to abolish minimum tax on listed companies. In other cases, the rate of minimum tax should be gradually reduced by 0.2% annually. Further, proposed that by tax year 2025 the tax rate should reduce up to 0.5% and increase the threshold of turnover to 50 million. Moreover, the minimum tax should also allow to carried forward for adjustment in subsequent years even in case of losses.

The KTBA also advised introducing a separate scheme for individuals, and AOPs and proposed to reduce the tax to 3%. Proposed a uniform rate of tax instead of providing exemption or reduced rate. Proposals also include that export services should include in section 154 of the Ordinance.

The KTBA also proposed to the Federal Board of Revenue to issue a separate list of Free Tax Numbers (FTNs). Who are not liable to tax withholding as provided under Section 49(3) of the Ordinance through an SRO. Further, added that no credit for tax payment available either by the withholder or by the recipient of the amount. The withholder proposed to allow to deposit the tax in the name of the parties whose withholding fell short.

tax accounting services top tax consultants lahore pakistan
Ads:

Budget | Proposals | Karachi Tax Bar Association | KTBA | Tax Year 2022 | FBR | Federal Board of Revenue | Tax Fraud |

Related posts
BUDGET

No More Income Tax on Educational Fees Under Section 236I

No More Income Tax on Educational Fees Under Section 236I Previously FBR charged Advance Income…
Read more
BUDGET

Latest Pay Scale Chart 2022-23 | Notification of Salary Increase 2022

Latest Pay Scale Chart 2022-23 | Notification of Salary Increase 2022. Government of Pakistan…
Read more
BUDGET

Pension Increase Notification 2022 | Federal Budget 2022-23

Pension Increase Notification 2022 Federal Budget 2022-23. Recently, Government of Pakistan…
Read more
Newsletter
Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

    Leave a Reply

    Your email address will not be published.