Submitted by:

Aasia bibi
Roll no:
F18-1000
Subject:
taxation
Programe:
Bs (accounting &finance)
Semester:
6th
Submitted to :
Sir: Atif
Dated:
23-04-21
Tax authorities in Pakistan:
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 operates through tax inspectors that keep tax evaders under
surveillance and perform special tasks for FBR Headquarters. FBR has also inducted new blood, new
strength of inspectors through FPSC in 2016 whom FBR intends to promote soon or empower with
assessment powers because of their competence. FBR performs role of collection of taxation in
country from all individuals and businesses.
FBR also collects intelligence on tax evasion and administers tax law for the governement of
Pakistan and acts as the central revenue collection agency of Pakistan.

Duties of (FBR):
• FBR is a semi-autonomous federal agency of Pakistan that is responsible for enforcing fiscal
laws and collecting revenue for the government of Pakistan.
• FBR has the responsibility for:
(i) formulation and administration of fiscal policies,
(ii) levy and collection of federal duties, taxes and other levies, and
(iii) quasi-judicial function of deciding taxation cases and appeals. FBR primarily operates
through its main collection arms comprising Regional Tax Offices (RTOs) and Large
Taxpayer Units (LTUs) across the country.
• FBR has two major wings: the Inland Revenue & Customs. 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,
FBR's powers & functions also include but are not limited to: carrying out inquiries and
audits/investigations into the tax affairs, commanding arrests, attachment as well as public
auction of movable and immovable assets of a non-compliant
Income Tax Authorities
Income tax authority [Explanation (a) to section 133A]:

"Income-tax authority" means a Commissioner, a Joint Commissioner, a Director, a Joint Director, an

Assistant Director or a Deputy Director or an Assessing Officer, or a Tax Recovery Officer, and for the
purposes of clause (i) of subsection (1), clause (i) of sub-section (3) and sub-section (5), includes an
Inspector of Income-tax.

1.1. Various Authorities:

Section of the Income Tax Act, 1961 provides for the administrative and judicial authorities for
administration of this Act. The Direct Tax Laws Act, 1987 has brought far-reaching changes in the
organizational structure. The implementation of the Act lies in the hands of these authorities. The change
in designation of certain authorities and creation of certain new posts in the structure are the main features
of amendments made by The Direct Tax Laws Act, 1987. The new features of authorities has been
properly depicted in a chart on the facing page. These authorities have been grouped into two main wings
:

(i) Administrative [ Income Tax Authorities ][ Sec. 116 ]

the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of
1963),
Directors-General of Income-tax or Chief Commissioners of Income-tax,
Directors of Income-tax or Commissioners of Income-tax or Commissioners of Income-tax (Appeals),
(cc) Additional Directors of Income-tax or Additional Commissioners of Income-tax or Additional
Commissioners of Income-tax (Appeals),
(cca) Joint Directors of Income-tax or Joint Commissioners of Income-tax.
Deputy Directors of Income-tax or Deputy Commissioners of Income-tax or Deputy Commissioners of
Income-tax (Appeals),
Assistant Directors of Income-tax or Assistant Commissioners of Income-tax,
Income-tax Officers,
Tax Recovery Officers,
Inspectors of Income-tax.

(ii) Assessing Officer [ Sec. 2(7A)]:

"Assessing Officer" means the Assistant Commissioner or Deputy Commissioner or Assistant Director or
Deputy Director or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of
directions or orders issued under sub-section (1) or sub-section (2) of section 120 or any other provision
of this Act, and the Joint Commissioner or Joint Director who is directed under clause (b) of sub-section
(4) of that section to exercise or perform all or any of the powers and functions conferred on, or assigned
to, an Assessing Officer under this Act;

Importance of Assessing Officer :

In the organizational setup of the income tax department Assessing Officer plays a very vital role. He is
the primary authority who initiates he proceedings and is directly connected with the public. Form the
time of filing of return till the assessement is completed he plays a pivotal role . He can start proceedings
for non filing of return, imposition of penalties etc. Orders passed by him can be challenged only on
approval. The department can revise his orders only if it is proved that there are prejudicial to the revenue
and that too only by the Commissioner of Income Tax.

(iii) Appointment of Income -Tax Authorities [ Sec. 117 ]:

Power of Central Government : The Central Government may appoint such persons as it thinks fit to be
income-tax authorities. It kept with itself the powers to appoint authorities upto and above rank of an
Assistant Commissioner of Income-Tax [ Sec. 117 (1) ]
Power of the Board and Other Higher Authorities : Subject to the rules and orders of the Central
Government regulating the conditions of service of persons in public services and posts, the Central
Government may authorize the Board, or a Director-General, a Chief Commissioner or a Director or a
Commissioner to appoint income-tax authorities below the rank of an Assistant Commissioner or Deputy
Commissioner. [ Sec. 117 (2) ]
Power to appoint Executive and Ministerial Staff : Subject to the rules and orders of the Central
Government regulating the conditions of service of persons in public services and posts, an income-tax
authority authorized in this behalf by the Board may appoint such executive or ministerial staff as may be
necessary to assist it in the execution of its functions.
(iv) Control of Income-Tax Authorities [ Sec. 118 ]
The Board may, by notification in the Official Gazette, direct that any income-tax authority or authorities
specified in the notification shall be subordinate to such other income-tax authority or authorities as may
be specified in such notification.
FUNCTIONS:
To identify the Withholding Agents;

To facilitate issuance of NTN/FTN to unregistered Withholding Agents in respective Regional Tax Office
through Pakistan Revenue Automation Limited;

To assist FBR in developing an accounting policy for appropriation of the deduction to the Regional Tax
Offices / Large Taxpayers Unit having jurisdiction over particular taxpayer(s);

To review and recommend suitable (automated) processes and filing structure of withholding statements
that is compatible with income tax environment;

To suggest to Federal Board of Revenue modification / amendments. Required in the Withholding Tax
Regime under the Income Tax Ordinance, 2001, to make them responsive and in accordance with the
universally acknowledged principles of direct taxation and best practices.

To monitor the certificates of exemption from withholding taxes, issued by concerned tax authorities, for
their proper utilization by all concerned.

To adopt ways and means to educate and facilitate the prescribed persons (Withholding agents)and other
stakeholders in meeting their withholding tax related obligations;

To collate information on withholding taxes withheld / collected and deposited for various purposes, by
identifying non-NTN holders for broadening of tax base;

To perform any other work incidental or necessary to achieve the objectives of the organization and
discharge of above functions;

To perform such other functions as may be assigned by the Federal Board of Revenue;

To check, supervise, ascertain, monitor, reconcile and properly enforce, in whole of Pakistan, the
Withholding regime and other relevant provisions of the Income Tax Ordinance, 2001 and Sales Tax of
1990.
To adopt ways and means to monitor deduction, collection and payment of tax collected / withheld to
ensure their correctness as per law and timely deposit in the Government treasury / State Bank of Pakistan
/ National Bank of Pakistan;

To control possible leakages of Withholding Taxes;

To investigate cases of non-deduction / short-deduction of Withholding Taxes;

To enforce the prescribed statements in respect of taxes withheld and take appropriate action under the
law in the cases of defaulters;

To maintain proper record of Withholding Taxes and prescribed persons;

To verify and cross match the monthly statements of Withholding Taxes with tax deposits / collection,
returns / statements / book of accounts / declarations and other information on taxpayers.

To get the orders passed under relevant provisions of the Income Tax Ordinance, 2001, imposition of
additional tax and penalty and to ensure the recovery of tax not deducted / collected by the withholding
agents.