The Federal Board of Revenue (FBR) has taken major decisions to resolve operational issues of Information Technology and ''IRIS'' software. The steps include merger of sales tax/income tax jurisdiction, powers to the Regional Tax Offices (RTOs) to issue Free Tax Numbers (FTNs) to government departments and authority to RTOs to transfer the jurisdiction of taxpayers. Sources said that a meeting was held at the FBR to consider the operational issues emanating from ''Iris''-return filing computer software.
The meeting was chaired by the FBR Member (IR Operations) which was attended by officers of IR-Operations and IT Wing apart from the CEO of Pakistan Revenue Automation Limited (PRAL). After considering the issues, the FBR has taken following key decisions: The first issue is related to the wrong assignment of jurisdiction at Unit, Zonal and RTO level. Difficulties faced by field formations in getting the jurisdiction transferred to correct Units. It has been decided that the transfer of jurisdiction within RTO will be delegated to Chief Commissioners Irs.
PRAL will provide Iris-based facility, whereby CCIRs would be able to assign jurisdiction to cases within RTO to its zones/units. The system would also provide facility to transfer cases to other RTOs/LTUs or to assign the cases to the FBR in cases where jurisdiction cannot be determined at RTO/LTU level.
The second issue is that the government departments getting stuck in making payment of amounts withheld and filing of withholding statements due to delay in issuance of FTNs. The facility to issue FTNs will be provided at the RTOs. PRAL will provide the CCIRs an FTN issuance facility in Iris, whereby the RTOs would be able to issue FTNs.
The third issue is that the audit for 2014 is required to be processed through ''Iris''. The replies of taxpayers received manually are not reflected in the inbox of the officer and therefore system cannot process further. It has been decided that the PRAL shall provide facility in ''Iris'' for uploading manual replies received from tax payers in ''Iris''. The replies to uploaded shall be reflected in the inbox of officers as replies filed by taxpayers.
The fourth issue is that the Chief Commissioners IRs issued notices in cases selected by FBR for audit under section 214C of the Income Tax Ordinance, 2001 where they did not hold lawful jurisdiction. It has been decided that the PRAL shall provide ''Iris'' facility and mechanism for transfer of such cases from the wrong jurisdiction to correct one; withdrawal of intimation letters issued from wrong jurisdiction, transfer to the login of the correct jurisdiction and issuance of intimation letter from the Commissioner of correct jurisdiction. This will be done once the RTOs/LTUs provide a certificate to Member IR-Operations that correct jurisdiction of all cases selected for audit have been updated in ''Iris''.
The fifth issue is that the PRAL shall assign all sales tax registered (STR) persons'' jurisdiction as per their assigned income tax jurisdiction. It has been decided that PRAL shall merge the income tax and sales tax jurisdiction of all cases as per the instructions issued vide Board''s letter No 4(28) Jurisdiction/2015 dated 4th December, 2015.
The sixth issue is that the ''Iris'' does not provide any facility for automatic withdrawal and issuance of notice under section 177 of Income Tax Ordinance, 2001. It has been decided that PRAL shall provide for automatic withdrawal and issuance of notices under section (u/s) 177 on ''Iris''.
The seventh issue is that two days after LTUs/ RTOs furnish certificates for correct assignment of jurisdiction for cases selected under Audit (u/s 177/214C). The field formations have represented the Iris has an inbuilt compliance time of 15 days in each type of notice which cannot be reduced to shorter period by the assessing officer. It has been decided that PRAL shall provide the facility in Iris by making the fixation of compliance date optional.
The eighth issue is that there is an acute need for capacity building/training of field officers including building a team of master trainers and resource persons for ''Iris''. It has been decided that Directorate General of Training & Research, Lahore, shall organise Training of Trainers (TOT) programme (in 04 batches of 25 officers each) at Lahore. These Trainers will not only train the other officers in field formations but will also serve as the local resources persons (''Iris'') in the respective RTOs/LTUs.
The ninth issue is that there'' is an immediate need for identification of resource persons (''Iris'') at all LTUs/ RTOs to address, IRIS-related queries, received from field officers as well as tax bars/ taxpayers, in active co-ordination with Secretary (IT Wing) and CEO, PRAL. It has been decided that the active feedback and support from the field formations to PRAL/Iris software development team shall help in continuous improvement of ''Iris''.
Initially the following four resource persons have been identified for Karachi and Lahore: Rai Irshad, ADCIR, RTO-II, Lahore; Abu Bakar, ADC1R, RTQ-I, Lahore; Akbar Mahar, ADCIR, RTO, Karachi and Javed Iqbal Tarar, ADCIR, LTU, Karachi. Other resource persons (with IT/background/Iris-related expertise), at least one from each LTU/RTO, shall be identified by the concerned RTOs/LTUs.
In Iris, the cases have been assigned up to the Unit level. However, about 15-20 percent cases have been placed under wrong jurisdictions due to unavailability of clear cut information about the cases. This has resulted in massive problems for the operational level units as no action can be initiated until the case is reflected under the rightful jurisdiction. It has been decided that the participants realised and appreciated the gravity and importance of the matter. SOP for cleansing of jurisdiction was discussed at FBR, and it was felt that the execution of SOP will be a cumbersome and time consuming process. It was decided that the same shall be launched after deliberation in the field formations from January 2016 and will be carried out within a span of two months, the FBR added.