ISLAMABAD: The Federal Board of Revenue (FBR) and the National Database and Registration Authority (Nadra) have agreed to expand collaboration and exchange data to determine the actual income of existing taxpayers, register new taxpayers, and finalise tax profiles of non-filers.
It is learnt that the FBR has also decided to get rid of redundant employees in the Pakistan Revenue Automation Limited (PRAL) to convert it into an organisation which can support the FBR’s digitisation and automation.
Sources told Business Recorder that the FBR and Nadra have again started a consultative process for expanding the tax base. The FBR wanted to utilise all kinds of data for expanding the tax net. The idea is to further strengthen data to register non-filers of income tax returns.
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The actual income of existing taxpayers would be determined based on Nadra’s data and new people would be registered for expanding the tax net.
In this regard, Chairman Federal Board of Revenue Malik Amjed Zubair Tiwana held a meeting with Chairman NADRA Lieutenant General Muhammad Munir Afsar at the FBR Headquarters.
During the meeting, matters pertaining to data sharing of eligible taxpayers were discussed. It was agreed to continue coordination on taxation affairs between the FBR and the Nadra.
The FBR chairman reiterated that the Revenue Division is committed to maximise tax compliance and promote tax culture across the country for increased revenue generation.
Last year, the FBR had shared the list of 3,500 big profiles of non-filers, prepared by the Nadra, with the FBR Operations Wing for on-ground verification of data. The Nadra had further improved the data and communicated to the FBR for the purpose of broadening the tax base in the past.
Under section 175B of the Income Tax Ordinance, the NADRA shall, on its own motion or upon application by the board, share its records and any information available or held by it, with the board, for broadening the tax base or carrying out the purposes of the Income Tax Ordinance.
The Nadra may (i) submit proposals and information to the Board with a view to broadening the tax base; (ii) identify in relation to any person, whether a taxpayer or not – (a) income, receipts, assets, properties, liabilities, expenditures, or transactions that have escaped assessment or are under-assessed or have been assessed at a low rate, or have been subjected to excessive relief or refund or have been mis-declared or misclassified under a particular head of income or otherwise; (b) the value of anything mentioned in sub-clause (a) of clause (ii), if such value is at variance with the value notified by the Board or the district authorities, as the case may be, or if no such value has been notified the true or market value; and (iii) enter into a memorandum of understanding with the Board for a secure exchange and utilization of a person’s information.
The board may use and utilise any information communicated to it by the Nadra and forward such information to an income tax authority having jurisdiction in relation to the subject matter regarding the information, who may utilise the information for the purposes of the ordinance.
According to a tweet of the FBR on Thursday, Chairman FBR Tiwana along with board members held a consultative meeting on restructuring and revitalisation of the PRAL. The chairman directed the CEO PRAL to present a detailed business plan including right sizing to make PRAL a self-sustainable and vibrant organisation, the FBR added.
Sources informed there is no plan for a large-scale layoff of the PRAL employees but only redundant employees would be terminated. The FBR needs an organisation which can take the burden of digitisation and automation within the organisation.
The technical expertise of the PRAL would be increased to achieve the ultimate goal of implementation of all projects of digitisation. The platform is required which provide full IT support to the FBR.
Copyright Business Recorder, 2023
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