Tax authorities have expressed displeasure over delay in the smooth implementation of four major projects including allocation of unique identification numbers to sales and income taxpayers; Integrated Tax Management System (ITMS); error-free e-filing; and Post-Clearance Audit (PCA).
Sources told Business Recorder on Saturday that the issues came to light during a demonstration of PCA software at a meeting chaired by FBR Chairman Abdullah Yusuf. The meeting was attended by FBR members, Project Director PCA and senior customs officials from Karachi/Lahore.
After a long delay of several years, the board has finally approved the new computer program for post-clearance audit of importers and customs clearing agents, which may be implemented in the next three weeks at Customs House, Karachi.
During the meeting, tax authorities directed the relevant department to expedite work on unique identification numbers. In December 2007, the board had to allocate 'Single Identifier Numbers' (SINs) to all taxpayers, who are presently using different sales tax registration numbers and National Tax Numbers (NTNs) for carrying out business activities. So far, the project has not been implemented.
Secondly, top officials directed the Pakistan Revenue Automation Limited and Sales Tax Wing to ensure error-free e-filing by the end of June 2008. Within the next three months, all problems pertaining to electronic filing of returns should be removed. The e-filing has been made mandatory for the corporate sector, but the units are still raising queries and facing problems during processing by the system, sources said.
They said that the issue of ITMS was also discussed during the meeting. It was decided to implement the system as per timelines agreed with the World Bank. It was decided to implement the pilot project of PCA at Karachi for which importers and customs clearing agents would be picked up under the newly devised risk-parameters. During the demonstration of software, experts opined that the computer system has been indigenously developed.
The risk management, profiling of importers and matching criteria for detection of suspected consignments was also discussed during the meeting. The selection criteria for audit would continue to change dynamically over a period of time taking into account the imports trends etc.
The audit of customs clearing agents would be done on risk based criteria under the PCA. Sources said that the new PCA model has incorporated features of Japanese, Irish, Thai and Malaysian PCA models.
A central office at the FBR House will be responsible for the development and maintenance of the national historical database, client accreditation program, traders' profiles and records. It will also look after the development and maintenance of the "Computerised Audit Performance and Reporting System".