CBR calls meeting to finalise strategy for CAP implementation

Central Board of Revenue (CBR) team will hold a meeting with National Bank of Pakistan and State Bank of Pakistan to finalise the strategy for the implementation of collection automation project (CAP) as a pilot project in the Large Taxpayers Unit (LTU), Karachi.
This was decided at a workshop organised under the auspices of enforcement and collection division of LTU Karachi, on Thursday. The workshop discussed the modalities of a fast track tax payment and transmission system devised by CBR in collaboration with the NBP. The statutory obligation of proper e-filing of withholding statements, tax payments challans and mandatory e-filing of returns/withholding statements also came under discussion. It was also decided to have follow-up meeting/workshop to review the recommendations of the workshop.
The SBP and the NBP would be brought on board so that the CAP is implemented for the best interest of the taxpayers and state revenue.
On the occasion, Mukhtar Ahmed Gondal, Director General LTU Karachi explained that CNICs and NTNs of 'payees' should be clearly recorded in the statements as well as challans to ensure credit of tax paid.
He said that the new system would expand the tax base and result in development of an accurate and reliable database on national basis. The third party information would be utilised to unearth under declaration of income and tax avoidance.
The automation project would be effective April 1, 2007, in which it would be mandatory to mention CNICs and NTNs on the tax deposit challans, he said.
Sardar Aminullah Khan, Chief (IMS), CBR gave a detailed presentation on CAP. He said: "The project envisages providing an efficient software based system that will facilitate the withholding agents to capture the challans data and transfer it directly to CBR main server through an internet connection and updating of status of taxes withheld by them through an easy-to-use but a secure website having an appropriate access management system."
The mechanism would not only overcome the procedural pitfalls in tax deposit but would also ensure timely tax credits for taxes withholding under various withholding provisions of the Income Tax Ordinance, 2001 and expeditious processing of refund claims, he said.
The automated tax deposit system was part of the client relations management strategy of the CBR, which moved around facilitation, education and consultation with the taxpayers on various reforms initiatives under the Tax Administration Reforms Project being implemented in collaboration with the World Bank. The workshop attended by 80 participants representing corporate sector assessed in LTU and responsible for collection/deduction of withholding taxes also.