Assessment, recovery: IR Commissioners to deal with specific cases

The Federal Board of Revenue has directed the Directorate General of Intelligence and Investigation Inland Revenue (IR) to exercise assessment and recovery powers of Commissioners IR only in specific cases involving high revenue to avoid creation of a parallel assessment organisation. Sources told Business Recorder here on Saturday that the FBR is expected to issue notifications next week to enhance the powers of the agency under Income Tax Ordinance 2001, Sales Tax Act 1990 and Federal Excise Act 2005.
The empowerment and organisational restructuring of Directorate General of Intelligence and Investigation (Inland Revenue) has been agreed by the FBR. During a recent meeting, the Director General I&I (IR) made a detailed presentation to this effect seeking powers under the various statutes and proposing amendments to organogram of the organisation. The Chairman FBR said that in majority of cases, the intelligence gathered by I&I (IR) was not utilised to its optimum by the concerned field formations. Accordingly, the Directorate General I&I (IR) must have sufficient legal and end-to-end powers in order to complete the assessment cycle and enforce recovery, wherever required. Some Members were of the view that in the circumstances, the Directorate General may turn up into yet another field formation which may cause duplication of functions. Majority of the Members, however, expressed their agreement with the proposal and argued that the Directorate General will deal with specific cases involving high revenue and shall therefore not cause any duplication of functions.
It was decided that end-to-end powers may be granted to the Directorate General of Intelligence and Investigation (Inland Revenue) for the purposes of making assessment and effecting recovery. Accordingly, Chief (Income Tax Policy) and Chief (Sales Tax /FED Policy) shall issue notifications for Income Tax Ordinance, Sales Tax Act and Federal Excise, respectively, in a week time. It was also decided that in order to avoid duplication, if a case is taken up by the Directorate General of Intelligence and Investigation (Inland Revenue), the tax office of its original jurisdiction shall not undertake any proceedings in that case, sources added.