ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh Thursday said link between the National Database and Registration Authority (Nadra) and the Federal Board of Revenue (FBR) will be established for data sharing and data analytics, and create a subgroup of members to point out and sort out difficulties hindering the progress on data sharing between the Nadra and the FBR.
This decision was taken by the adviser, while chairing the second meeting of the FBR Policy Board.
The subgroup comprising Hammad Azhar, Dr Ishrat Hussain, Faiz Kamoka, the chairman FBR, and the chairman Nadra, will share its report with the chairman in a week.
Sources told Business Recorder Thursday that the FBR informed the FBR Policy Board that it provided a list of 100,000 Computerised National Identity Card (CNIC) numbers of unregistered persons to the Nadra for data enrichment to broaden the tax base. However, the Nadra has yet not responded on the utilization of the 100,000 CNICs of the un-registered persons. The Nadra was required to link those 100,000 CNICs with its database covering family tree, and provide all the data to the FBR for further processing and broadening the tax base.
During recent meetings between the FBR and the Nadra, the authority has asked the FBR to provide third-party data including property/land data, vehicles/utilities' information, telecom, banks/stock market data, etc, for analysis/working out tax liability of tax evaders/short-filers.
According to the sources, the Nadra officials had repeatedly met the tax authorities to have access to the third-party data maintained by the FBR for the purpose of creation of mathematical models, data analytics and determining the predictive tax liability of tax evaders and short-filers with the help of Artificial Intelligence (AI).
The Nadra has sought data from the FBR including travelers' data, telecom data, property/utility data, credit card information, banks data, vehicles data and other data such as land records, etc.
These data are available with the FBR's third-party information maintained in the FBR's own databases.
However, the tax authorities during a press conference on September 9, categorically stated that the FBR will not share data of third-party information with the Nadra as sharing of the data is barred under Income Tax Law. "The FBR cannot share third-party information with Nadra for analytical or any other purposes as the income tax law does not permit for sharing of taxpayers' information with anyone," the FBR's Member Information Technology (IT), Asim Ahmed, stated.
The Nadra is a service provider and we cannot share data of taxpayers to the service provider under the provisions of the income tax laws, the FBR Member IT said.
He said that the Nadra could charge minimal fee as service provider after integration of its data with the FBR but exact fee would only be determined after signing of a MoU.
The sub-group of the FBR Tax Policy Board would hear both the sides in detail and take the final decision in this regard, sources said.
The adviser has also taken notice of the difficulties the traders are facing due to stoppage of containers at the Torkham border.
Member customs informed that necessary steps had been taken and the issue would be resolved within the coming weeks.
Syed Javed shared his recommendations on the Pral, and told that the CEO Pral had been appointed.
The next meeting of the policy board would be held by the end of this month, and the ToRs of the policy board will be presented for approval.
Hammad Azhar and Abdullah Yousaf shall prepare the said ToRs.
The chairman FBR briefed the adviser on the efforts the institute has been making to improve the abilities and expertise of its human resource, and on the progress of the automation drive of the FBR/Customs.
The adviser was also briefed on measures taken and future course planned to improve skills and competence of its staff by providing different in-house and foreign trainings to improve managerial competence and adopt a culture of performance-based incentives including promotions.
The FBR chairman also briefed the adviser on the work being done on the IRIS (software) side to consolidate various application platforms into one to improve efficiency and performance. A technologically-advanced sales tax registration verification mechanism is introduced, whereby officers with tablets will be sent to capture real-time information and pictures including GPS coordinate of businesses requiring verification.
Copyright Business Recorder, 2020