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  • Aug 18th, 2009
  • Comments Off on Task Force empowered to discover unregistered businessmen
The Revenue Generation Task Force (RGTF) of the Federal Board of Revenue (FBR) has been empowered to discover unregistered potential businessmen, and take steps to check massive under-reporting of taxes across the country. Sources told Business Recorder on Monday that the FBR has finalised terms of reference of the task force for increasing revenue collection.

The RGTF would prepare a plan for strengthening FBR enforcement activities by identifying unregistered business entities, non-filers and stop-filers. The enforcement activities of the RFTF would be supervised by FBR Member Operations. The plan's target is to reduce sales tax and corporate tax non-filers and late filers to less than one percent in the case of LTU taxpayers, and less than 7 percent in the case of medium size business taxpayers, by end-December 2009.

The Task Force would meet at least once a month to review progress on enforcement plan. The operational Members may constitute their own sub-teams for implementation of the enforcement plan on national level.

The RGTF would select 'stop-filers' and 'short-filers' to improve compliance through enforcement strategy. The RGTF has been given the mandate to check under-reporting of taxes through cross-checking of sales and purchase data. It would also assess the number of enforcement officers available at Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs). The task force would also determine the number of cases by region in terms of income and sale taxes. It would prioritise the cases for each LTU and RTO and determine standard times for completion of cases and resource requirements.

The RGTF would also appoint one individual each from Operation Wings of North and South as co-ordinator of the task force for starting operation at LTU and RTO. The Member, Domestic Operations South, and Member, Domestic Operations North, will supervise all activities to meet the October 30, 2009 target date.

It is worth mentioning that the board is taking several measures for overcoming revenue shortfall, and creation of such RGTF seems to be an effective measure to generate revenue on short-term basis. As a first step to address revenue generation problems, the FBR has created the Revenue Generation Task Force to collect revenue on short-term basis.

The RGTF will primarily pursue raising revenue in the short-term. The objective would be met by establishing a special operation to address three critical issues: Firstly, control of "stop filers". Second, improve compliance by the short filers, and third, detection of underreporting via cross-checking of sales and purchases within the supply chain. The current IT systems allow identifying non-compliance in these three areas. In the case of 'stop filing', it is necessary to carry out some cleaning up of the taxpayer.

Copyright Business Recorder, 2009


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