Name: Maryam Imran

Roll no.: F18-0976

Subject: Taxation

Assignment: Income Tax Authorities In Pakistan

Submitted To: Atif Attique

Programme: Accounting and Finance

Semester: 6th

Date: 22nd April,2021

 Income Tax Authorities In Pakistan
Pakistan's current Taxation system is defined by Income Tax Ordinance 2001 (for direct taxes)
and Sales Tax Act 1990 (for indirect taxes) and administrated by Federal Board of
Revenue (FBR).

Federal Board of Revenue:

The Federal Board of Revenue (FBR), formerly known as Central Board of Revenue (CBR), is a federal
law enforcement agency of Pakistan that investigates tax crimes, suspicious accumulation of wealth and
money-laundering. FBR also collects intelligence on tax evasion and administers tax laws for the Government
of Pakistan and acts as the central revenue collection agency of Pakistan.

FBR primarily operates through its main collection arms comprising Regional Tax Offices (RTOs) and Large
Taxpayer Units (LTUs) across the country.

FBR is divided into three parts,

 Headquarter,
 Directorates and
 Field formations

Headquarter is responsible for devising policy, new initiatives and giving directions.

Directorates are especially responsible for training of probationary officers,special monitoring of

taxes and duties and to assist and liaison with the field formations.

Field formations are responsible for the execution of all directives from the Headquarters

Structure:

FBR has two wings.

 the Inland Revenue

 Pakistan Customs services

The Inland Revenue Service (formerly known as Income Tax Department) administers domestic taxation
including Sales Tax, Income Tax and Federal Excise Duties and is the main component of FBR.
 The Pakistan Customs Service administers import duties and other taxes collected at import stage, as
well regulates international trade with regard to prohibitions & restrictions imposed by the government.
For the purpose of collection of revenue and pursuing tax evaders

Duties and Responsibilities Of FBR:

FBR has the responsibility for

 Formulation and administration of fiscal policies,

 Levy and collection of federal duties, taxes and other levies,
 Quasi-judicial function of deciding taxation cases and appeals. 
 Interaction with president office, PM, and all economic ministries as well as trade and industry .
 Grand exemption from tax to the newly established industrial under taking &make rules for such
exemption.
 Make rules for appointment of valuers & other matters, related to other smooth functions.
 Make rules for the recovery of tax from a taxpayer who is in a defaulted.
 Make rules for tax credit or certain investments.
 Certify an institution as conducting research in Pakistan.
 Approve schemes regarding employee training.
 Make rules for valuation & taxation of unexplained income or assets.
 Issue circular to tax payers & officers of the board.
 Issue advance ruling on application of a non resident.
 Approve a security for the purposes of taxation of profit debts.
 Grant of approval for filing of appeals/references before High Courts and CPLAs/Review before
the Supreme Court and to pursue litigation in courts
 Coordination with Law Division and Attorney General of Pakistan.
References:
https://en.wikipedia.org/wiki/Federal_Board_of_Revenue

https://www.slideshare.net/DaniyaShakil/federal-board-of-revenue-68601821

https://www.fbr.gov.pk/functions/142251/131323