Implementation of FBR Act 2007: FBR starts to assess its achievement for financial, operational autonomy

Tax authorities have started evaluation of the Federal Board of Revenue (FBR) Act 2007 to check whether the new law has been fully implemented to achieve financial and operational autonomy for the FBR. In this regard, the FBR Chairman Ahmed Waqar has directed members to give presentations on the implementation status of the FBR Act 2007.
Sources told Business Recorder on Friday that the provisions of the FBR Act came into force from November 1, 2007 through issuance of a notification. The FBR had obtained maximum powers to operate independently under the new law. However, there is a need to analyse whether the law has been fully implemented. As over ten months have passed since conversion of Central Board of Revenue (CBR) into the FBR, it is yet to be determined whether all provisions of the new law have been implemented or not.
The autonomy of the FBR Act, 2007 is necessary for the tax authorities to independently determine its own policies and strategies in relation to recruitment and allowances and adopt modern effective tax administration methods, information technology systems and policies in order to consolidate assessments; improve processes, organise registration of taxpayers, widen the tax base and make departmental remedies more efficient including enforcement of penalties.
The board has been empowered to implement any administrative and operational decision through Cabinet Committee for Federal Revenue (CCFR). Board has obtained these powers through FBR Act 2007 to work independently. The CCFR, headed by the Minister for Finance or the Advisor to the Prime Minister on Finance, would give approval of FBR proposals for speedy implementation.
Sources said that the section 10 of the FBR Act, 2007 related to the directions from the Federal Government, the Federal Government may, from time to time, direct or advise the Board to conduct its affairs and perform its functions in such a manner as specified by the Federal Government in this behalf.
The Federal Government may also entrust the Board the functions and powers under any law for the time being in force and such directions shall be binding on the Board." Under the provision, the tax authorities would not be required to go to the Federal Government and approval of the CCFR committee would be enough for implementation of any tax-related decision. The Cabinet Committee for Federal Revenue as a supervisory body shall approve guidelines with regard to the policy, planning, reforms, budget and any such other matter referred to it by the Board.
The presentation of the FBR members would also specify whether any meeting of the CCFR has been convened for the implementation of FBR Act since November 1 2007. In November 2007, the board had issued FBR Rules 2007 along with notifications to enforce FBR Act, 2007 and extended powers of the members for carrying out day to day operations of the revamped organisation.
Under Federal Board of Revenue Rules 2007, the board had delegated its powers and functions to the chairman or the line member, functional member and support member who shall transact such business, and exercise such powers and functions, singly, as may be allocated to him.