The Federal Board of Revenue (FBR) has decided to remove a serious anomaly in the functioning/postings of officers in small cadre (Sales Tax), as Deputy Collector/Deputy Commissioner are not a defined authority under the Income Tax Ordinance 2001, Sales Tax Act 1990 and Federal Excise Act, 2005.
Sources told Business Recorder here on Thursday that the FBR has decided to seek legal opinion of Law and Justice Division to determine whether or not the officers of small cadre can perform statutory functions under the Sales Tax Act, 1990. Legally, the officers of small cadre of sales tax cannot perform the core functions of Inland Revenue. The question arises what shall be the future of these officers, particularly while they're neither member of Inland Revenue Service or Pakistan Customs Service? The ruling of Law Division would decide the fate of these sales tax officials about their functioning and assignments in future. Law Division will also guide FBR about the status of these small cadre officers.
The future of small cadre of sales tax covering Cost Accountants (BS19), Assistant Collector Sales Tax (BS-17), Law Officer (BS-17) and Senior Auditors (BS-16) wad discussed during the last meeting of the Board-in-Council. "What shall be the future of these officers, particularly while they're neither member of IRS/PCS nor were given any option at the time of merger, tax authorities raised question.
The issue of small cadre of Inland Revenue (Sales Tax) was thoroughly discussed and it was decided that the following queries about officers of the small cadre may be answered before arriving at any conclusion: Firstly, how these officers were inducted, ie, how they joined the service? Secondly, what functions were performed by these officers at that point of time? Thirdly, what functions are currently performed by these officers, ie, after the formation of Inland Revenue service?
Fourthly, what functions are required to be assigned and what is the proposed complete job description? In response to the said queries, FBR Member (Administration) said that the Cost Accountants (BS19), Assistant Collector Sales Tax (BS-17), Law Officer (BS-17) and Senior Auditors (BS-16) of the Small Cadre were appointed directly against specified posts. Subsequently, the officers appointed directly as Assistant Collectors (BS-17) were promoted as Deputy Collectors (posted as Deputy Commissioners) whereas the officials appointed directly as Senior Auditors were promoted as Deputy Collectors on acting charge basis (posted as Deputy Commissioners).
Member (Administration) further elaborated job descriptions of the officers at the time of appointment which included mobilising resources of the operational unit to achieve assigned revenue goals/targets, creating taxpayer friendly environment through implementation of planned facilitation initiatives and monitoring scheduled audits. Currently, only one Cost Accountant is posted in the field office viz RTO, Multan and is looking after audit paras for DAC/PAC. The other five Cost Accountants are performing duties in the FBR HQ as Chief/Secretaries while one Cost Accountant has retired prematurely on his request. The officers promoted as Deputy Collectors are performing functions as Deputy Commissioners in the field formations.
FBR Member (Administration) further explained that neither the Deputy Collector nor Deputy Commissioner is a defined Authority under the Income Tax Ordinance 2001, Sales Tax Act 1990 and Federal Excise Act 2005. As a matter of fact, it is the Deputy Commissioner Inland Revenue that stands defined in these statutes. As such, the performance of the core functions of Inland Revenue by the Deputy Collectors/ Deputy Commissioners of Small Cadre has created a serious anomaly which requires to be addressed at the earliest. Member (Administration) further referred to para 7(iii) of the conditions of the Establishment Division relating to the creation of Small Cadre approved by the Prime Minister which clearly states that, "there will be no induction of the incumbents of these ex-cadre posts in main IRS". In the circumstances, he proposed that these officers may not be entrusted with the core functions of Inland Revenue, rather only functions may be specified for such officers as detailed in the relevant Working Paper.
FBR Chairman said that major issue under consideration is what shall be the future of these officers, particularly while they're neither member of IRS/PCS nor were given any option at the time of merger. The Chairman was of the view that job descriptions of such officers should primarily relate to assisting the Chief Commissioners in sales tax Maters where they enjoy adequate experience and expertise. Tax authorities opined that irrespective of any nomenclature, these officers cannot perform the core functions of Inland Revenue.
FBR Chairman invited all the Members for their individual views and proposals on the matters relating to job descriptions and future assignments of the officers of Small Cadre. While some FBR members were of the view that these officers cannot be declared Authority by FBR under its statues, others opined that Section 30 of the Sales Tax Act empowered the FBR to nominate any person to perform any function under the Sales Tax Act, therefore, they proposed that the officers who are already working in the field formation may be assigned the core functions under Sales Tax Act to be made effective members of the team.
Board-in-Council decided that the officers of Small Cadre may be assigned the designations of Deputy Commissioner (Sales Tax), Additional Commissioner (Sales Tax) and Chief or Commissioner (Sales Tax). It has been further decided that the issue whether or not the officers of Small Cadre can perform statutory functions under the Sales Tax Act, 1990 shall be referred to Law Division for having its legal.