The Federal Board of Revenue (FBR) will ratify all the income tax circulars of 2013, Income Support Levy Rules as well as SROs regarding income tax returns for individuals, companies and Association of Persons to meet the legal requirement of FBR Rules 2007.
Sources told Business Recorder here on Tuesday that the Board-in-Council of the FBR would ratify four income tax circulars of 2013, Income Support Levy Rules, 2013, SRO.799(I)/2013 and SRO.828(I)/2013 regarding income tax returns for individuals, companies and Association of Persons (AOPs) to fulfil legal requirement under FBR Rules 2007.
Sources further said that the FBR had issued income tax circular in 2013-14 with the approval of the concerned FBR Members which were legal as per FBR Rules, 2007, but these circulars also need ratification by the Board-in-Council as per FBR Rules, 2007. To fulfill the requirement of the FBR Rules, 2007, the FBR's Board-in-Council would ratify four income tax circulars of 2013, they added.
Board-in-Council has decided to ratify circular No 06 of 2013 (Finance Act 2013 explanation), circular 07 of 2013 (extension in date for filing of income tax return/statement for tax year 2013); circular 08 of 2013 (exemption from collection of tax under section 148 of the Income Tax Ordinance 2001 on imports by industrial undertakings) and income tax circular 09 of 2013 (extension in date for filing of income tax return/statement for tax year 2013); Income Support Levy Rules, 2013 and SRO No 799(I)/2013, 828(I)/2013 regarding Income Tax Returns for Individuals, Companies and AOPs.
Board-in-Council also decided to revise the FBR Rules, 2007 in view of the current circumstances and any short-comings therein shall be addressed to avert difficulties relating to functioning of the Board. The decisions would be implemented by FBR Member Legal in consultation with FBR Member (IR-Policy), FBR Member Customs and FBR Member (Admn).
Sources said that the FBR Member (IR-Policy) explained before Board-in-Council that according to FBR Act, 2007, no inherent powers are available either to FBR Chairman or the FBR Members. The powers of the Board have been elaborated in section 4 of the FBR Act. The section 4(2) states that "the Board may, where appropriate, issue statutory rules and orders (SROs), orders, circulars and instructions for the enforcement of any of the provisions of fiscal law and the provisions of this Act." However, Section 8 of the Act stipulates that the Board may delegate any of its functions and powers to any Government agency, Chairman or any member or employee duly appointed under this Act. Delegation of powers has been enumerated in Rule 3 of the FBR Rules, 2007. As per Rule 3(1), the Board may delegate its powers and functions to the Chairman or any line/functional/support Member. Rule 3(2) provides that the Chairman may distribute powers, functions and business of the Board among its members as he may deem fit. Rule 3(3) provides that until such powers are delegated, any power, function or business exercised by the Chairman or a member shall be deemed to have been allocated to him. However, Rule 3(4) provides that any such power, function or business performed under Rule 3(3) shall be ratified by the Board.
As such, FBR has issued various circulars in the Financial Year 2013-14 with the approval of the concerned members which are legal as per Rule 3(3), but required to be ratified by the Board-in-Council as per rule 3(4) of the FBR Rules, 2007. After detailed discussions on the issue under consideration, the following decisions were taken: Board-in-Council decided to ratify following Circulars, SROs and Rules ie Circular Nos. 06 of 2013, 07 of 2013, 08 of 2013 and 09 of 2013; Income Support Levy Rules, 2013; SRO No 799(I)/2013, 828(I)/2013 regarding Income Tax Returns for Individuals, Companies and AOPs and FBR Rules, 2007 shall be re-visited in line with the current circumstances and any short-comings therein shall be addressed to avert any difficulties relating to functioning of the Board. The FBR decided that action would be taken by Member (Legal) in consultation with Member (IR-Policy), Member (Customs) and Member (Admn).
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