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Home »Taxation » Pakistan » Unearthing tax evasion: Tarin directs FBR & DGII to offer incentive to external informers

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  • Dec 16th, 2009
  • Comments Off on Unearthing tax evasion: Tarin directs FBR & DGII to offer incentive to external informers
Finance Minister Shaukat Tarin has directed the Federal Board of Revenue (FBR) and Directorate General of Intelligence and Investigation to provide incentives to external informers for unearthing tax evasion, and launch national enforcement plan for bringing undocumented businesses/sectors into the sales tax net.

Sources told Business Recorder here on Tuesday that the issues of non-compliance were discussed threadbare in the last meeting of Tax Advisory Council held to assess the performance of DG Intelligence with regard to anti-evasion activities.

The Finance Minister has issued following guidelines to the FBR for expanding the tax net: First, the FBR should provide special allowance for the staff posted in Balochistan and NWFP. Second, the pilot project of utilising third-party data should immediately be launched at least in two reformed units to unearth unregistered and short-filers of sales tax returns.

Third, the FBR should initiate a formal program for against evasion of customs duty, and incentives be provided to outside informers. This would bring in more tax evaders into the tax net. Fourth, the FBR should submit suggestions to the Tax Advisory Council for controlling smuggling under the Afghan Transit Trade Agreement (ATTA).

Fifth, the FBR should chalk out modalities for resolving trade related issues with the neighboring countries. In this regard, the issues like Line of Control (LoC) and Confidence Building Measures (CBMs) be resolved with the neighboring countries.

Meanwhile, officials of the DG Intelligence gave an overview to the Tax Advisory Council on contravention cases against the registered units particularly importers. The Directorate also pointed out certain areas of concern in customs duty, sales tax and excise duty and potential areas for recovery of taxes.

Copyright Business Recorder, 2009


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