The Federal Board of Revenue (FBR) Monday notified that a high level committee has been formed for speedy processing of applications of new foreign investors and non-resident companies, who want to obtain 'advance rulings' on tax related matters.
The FBR has amended Income Tax Rules 2002 through an SRO54(I)/2009 issued here Monday. The notification has been issued after incorporating viewpoint of all stakeholders.
According to the amendment, the committee would be headed by Chairman FBR and its members include FBR Member Inland Revenue and a Senior Joint Secretary of the Ministry of Law, Justice and Human Rights for processing of advance ruling applications. Under the procedure, a non-resident person desiring an advance ruling under section 206A of the Income Tax Ordinance, 2001 will make an application to the FBR in the relevant form.
The committee will have the authority to examine the application filed by a non-resident company. However, FBR is bound to finalise application on 'advance-ruling' within specified time frame.
The committee may obtain comments of the Commissioner of Income Tax concerned and, if it considers necessary, advice of a legal expert on the application and decide the issue in a joint sitting or through circulation amongst its members. Advance ruling means determination by the committee in relation to the transaction which has been undertaken or is proposed to be undertaken by a non-resident person the question of law in the application.