ISLAMABAD: Federal Board of Revenue (FBR) said that a commissioner of Inland Revenue has been empowered to ask source of money used for purchase of immovable properties under legal provisions related to undeclared assets.
The FBR in explanations related to purchase of immovable properties, said that the commissioner of Inland Revenue can ask to explain the source of funds in the investment made in immovable property and apply the provision of unexplained income under Section 111 of Income Tax Ordinance, 2001 by providing opportunity of being heard.
The tax authority explained to general queries related to FBR valuations of immovable properties. The FBR responded in a scenario when a person is not a filer of income tax returns and the person intended to purchase property at FBR’s notified rates and required to pay advance tax under Section 236K at the time of purchase.
The general query was whether commissioner can ask the question of source of investment for such property.
The FBR in another query related to purchase of an immovable property at FBR’s notified value on which advance tax payable whether commissioner of Inland Revenue shall still be empowered to re-determine the value of property?
The FBR said that the commissioner was not empowered to re-determine the value of the immovable property purchased on the valuation as determined by the FBR for which advance tax under Section 236-K of Income Tax Ordinance, 2001 has been paid on such valuation.