The World Bank supervision mission has asked the Federal Board of Revenue to submit latest data on 100 major pending claims of sales tax refunds involving substantial amount under the Expeditious Refund System (ERS).
Sources told Business Recorder here on Thursday that the FBR is sharing this information with the WB mission during the video conferencing taking place between the FBR Chairman Salman Siddiqui and WB officials at the WB Office at Islamabad during October 16-22, 2011.
Under the Tax Administration Reform Project (TARP), the WB mission is reviewing the progress on the reforms initiatives and key performance benchmark as per Action Plan for implementation of reforms. The FBR would submit the latest data of 100 major claims including deferred sales tax refund claims for the WB supervisory mission. The data of 100 oldest claims as on October 1, 2011 would include claimed amount, deferred and average age. The FBR would also submit data of sales tax claims as on October 1, 2011 involving amounts of up to Rs 100,000; Rs 100,001 to Rs 1 million and claims above Rs 1 million. The bifurcation of pending claims would give a clear picture of the number and amount of claims not cleared by the tax authorities.
The WB has also asked the FBR to provide information about the Sales Tax Refund Cheques Status. It included cheques status, total cheques issued, cheques for claimants, cheques for recovery, ROPs for which cheques are not required and number of cheques not yet issued as on October 1, 2011. The data relating Sales tax Refund Claims Closing balance would also be provided by the FBR to the WB. The data included ST Refund Claims (as of 30 September, 2011), opening balance as of 01.09.2010, new claims during the period (September 2010 to September 2011), Total claims for the period, processed during the period, fully Sanctioned, partially sanctioned, closing Balance as on September 30, 2011 no of claims and claims not processed at all or deferred for the next month-totally or partially processed for this period.
The FBR will also provide information about the enforcement-related activities to the WB mission. The information included progress on the Enforcement Plans for 2010-2011 and 2011-2012. The FBR will also respond to the following questions raised by the WB mission: 1. Has FBR started to apply fines and default tax automatically by the IT system without human intervention?
2. Has FBR started applying the Active Taxpayer List restrictions to IT non-filers?
3. Have commissioners' powers to notify, select, apply fines and default charges been moved to the Chairman, has he delegated such powers to relevant officers?
4. Has the Withholding tax been restored to a monthly payment system?
5. Have FBR powers to notify through newspapers been established?
6. Have expense deduction from purchases from Non Active Taxpayer List (ATL) taxpayers been disallowed?
7. Has the reduction of fines for taxpayers who decide not to appeal from audit assessments been implemented?
In case of audit, the FBR will provide copy of the report on the Audit Plans of 2010-2011 and 2011-2012. Other data included results of the 2011-2012 Audit plan (up to September 2011) and progress with the implementation of the new desk audit based on the discrepancy reports. The FBR will also describe progress with the implementation of the centralised taxpayer audit unit and report on the completion of outsourced audits (FY 2009-10).
The FBR will also submit the status of implementation of changes due to functional integration process started in 2010 (creation of IRS). Specifically, the FBR will refer to the organisation of field formations and determination of workload and staff requirements of the various units in each Large Taxpayer unit and Regional Tax Office. The WB mission has also raised the following questions relating to the Human Resource Management (HRM) and Information Technology:
1. Please explain progress. if any, in the implementation of a new HRM policy and issues linked to HR modernisation effectiveness and integration.
2. Describe any changes in the FBR organisation recent changes that affect the distribution of HRM responsibilities between DG HRM and Administration Wing.
3. Indicate the possibility of using KPIs as tools for implementing the mechanism for performance-based bonus (define what KPIs are proposed to be used. if any).
4. Describe the progress in the training activities as part of the modernisation program and the 2011 training plan (eg, number of courses already offered and total for the year, number of participants, evaluation of courses by attendees, etc) with specific reference to job-related management and technical training and Management training for staff at BS level BSI9
5. Provide an overview of the progress the Core Domain Team has made since April of this year. Specifically, please identify' any projects that they have provided input to and how the team has participated on those projects.
6. A benchmark questionnaire has been provided under separate cover to be completed by Pral with reference to the ITMS system and its sub-components, sources added.
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