Sources toldBusiness Recorder here on Monday that the tax reforms implementation committee (TRIC) headed by Masoud Naqvi would make a presentation in the next meeting of the TRIC on the issue of declaration of assets located abroad by resident Pakistanis. A number of major tax reforms initiatives are under the process of the implementation by the FBR. The FBR will implement these tax reforms as recommended by the tax reforms commission (TRC). In this regard, a meeting of high-powered implementation committee of tax reforms commission (TRC) is expected to be held on March 2 at the FBR House, sources said.
Following are the proposals, decision, timelines and implementation status of the tax reform initiatives recommended by the Tax Reform Commission implementation committee: 1. TRC Proposal: Alternate Dispute Resolution to be under Federal Tax Ombudsman (FTO). Decision: A sub-committee was constituted to submit proposals with regard to constitution of ADR committees in the existing legal framework.
Further Action: Sub-committee to present its proposals in the next meeting of the TRIC. Remarks: The constitution of the sub-committee is as follows: Member (Legal) (Convener); Abid Shaban (Member) and Chief (HRM), FBR (Member). 2. TRC Proposal: Electronic monitoring of production of the Tobacco Industry.
Decision: A sub-committee was constituted to make recommendations regarding the pros and cons of both systems relating to electronic monitoring of production.
Further Action: Sub-committee to present its proposals in the next meeting of the TRIC.
Remarks: The constitution of the sub-committee is as follows.
Member (SPR&S) (Convener); Ashfaq Tola (Member); Abid Shaban (Member); Chief (Legal), FBR (Member) and Chief (Sales Tax Policy) (Member).
3. TRC Proposal: Functional and Territorial jurisdiction Approval of three tier structural reforms regarding establishment of a three tier structure covering Large Taxpayers Units, Corporate RTOs/Zones and Composite Units in peripheral areas accorded by TRIC.
Decision: Note for establishment of RTOs at Sahiwal and Gujrat to be put up to the concerned quarters on a priority basis.
4. TRC Proposal: Mapping of retail outlets.
Decision: A sub-committee was constituted to appraise the viability of outsourcing of geo-tagging and make recommendations in this regard.
Abid Shaban to make proposals on how to improve the process of geo-tagging/mapping of retail outlets.
Further Action: Sub-committee to present its proposals in the next meeting of the TRIC.
Remarks: The constitution of the sub-committee is as follows.
Member (IR-Operations) (Member) and Member (IR-Policy) (Member).
The committee was given the mandate to co-opt two other members.
5. TRC Proposal: Declaration of assets located abroad by resident Pakistanis.
Decision: It was decided that the members of the TRIC headed by Masoud Naqvi would apprise the committee of this issue and delineate the way forward in this respect.
Further Action: Masoud Naqvi to make a presentation in the next meeting of the TRIC on the issue of declaration of assets located abroad by resident Pakistanis.
Remarks: Masoud Naqvi; Ashfaq Tola and Abid Shaban.
6. TRC Proposal: Strengthening of Tax Audit Function.
Decision: A sub-committee was constituted, tasked with identifying two sectors/cases for purposes of forensic audit and determining the requirements in this respect. The proposal made by the Member (TPA) relating to transparency in audit selection would be taken up for consideration during the budget exercise.
Further Action: Sub-committee to make a presentation on the progress made in the next meeting of the TRIC.
Remarks: The Constitution of the Sub-Committee is as follows.
Member (TPA), (Convener); Member (SPR&S) (Member); Masoud Naqvi (Member) and Abid Shaban (Member).
7. TRC Proposal: Committee for simplification of laws.
Decision: As sub-committee was constituted to identify specific areas relating to simplification/harmonisation of laws within 45 days.
Further Action: Sub-committee to apprise the TRIC on the progress made in this respect in the next meeting of the TRIC.
Remarks: the constitution of the sub-committee is as follows.
Member (IR-Policy) (Convener); Member (Legal) (Member); Ashfaq Tola (Member); Abdi Shaban (Member) and chief (ITP) (Member).
The Sub-committee was authorised to co-opt other members, if required.
8. TRC Proposal: Action plan to reduce the quantum of the underground economy in Pakistan.
Decision: A sub-committee was constituted to formulate an action plan to reduce the quantum of the underground economy in Pakistan and give recommendation in this respect.
Further Action: Sub-committee to submit proposals in the next meeting of the TRIC.
Remarks: Member (FATE) (Member); Masoud Naqvi(Member); Abid Shaban (Member) and Ashfaq Tola (Member).
The sub-committee was authorized to co-opt other members if required.
9. TRC Proposal: I.T Strategy for FBR.
Decision
Further Action
Remarks: Presentation by CEO (PRAL).
10. TRC Proposal: Advance Ruling Mechanism.
Decision: It was decided that an Advance Ruling Mechanism will be devised for all taxes.
Further Action: Member (IR-Operations) and Member (Customs) to make presentation on this proposal.
Remarks: Member (IR-Operations) and Member (Customs.
11. TRC Proposal: Performance Evaluation.
Decision: It was discussed that KPIs have been finalised with the help of professionals, which were also shared with the TRC. It was decided that further progress be made in this regard.
Further Action: Member (HRM) to apprise the Committee in this respect.
Remarks: Member (HRM).
12. TRC Proposal: Appellate forums.
Decision: this proposal will be discussed in future meetings.
Further Action: Abdi Shaban to make a presentation on this issue.
Remarks: TRC.
Copyright Business Recorder, 2017