ISLAMABAD: Federal Board of Revenue (FBR) has said that after amendments made to sales tax and federal excise laws various authorities and organizations have been made duty bound to allow real-time access to tax authorities for preventing tax evasion.
Through Circular No. 01 of 2020, the FBR issued explanation to amendments made sales tax and federal excise through Finance Act, 2020.
The FBR said that new sections, 56AB in the Sales Tax Act, 1990 and Section 47AB in the Federal Excise Act 2005, have been added whereby various authorities/ organizations will be duty-bound to give real time access to the Board for online sharing of data in their respective databases.
The purpose of the measure is to enhance FBR’s capacity of detecting tax evasions, broadening tax bases, improving compulsory registrations in appropriate cases, encouraging and promoting voluntary compliance by “national concerted efforts”.
Following authorities have been added in the first place:
- National Database and Registration Authority
- Federal Investigation Agency and the Bureau of Emigration and Overseas Employment
- Islamabad Capital Territory and provincial and local land record & development authorities
- Islamabad Capital Territory and provincial Excise and Taxation Departments
- All electricity and gas supply and distribution companies
- Any other agency, authority, institution or organization notified by the Board.
The FBR shall make arrangements for laying the infrastructure for real-time access to information and databases and aligning it with its own database in the manner as may be prescribed. Until real-time access to information and database is made available, such information and data shall be provided periodically in such form and manner as may be prescribed.
All information received under the provisions under reference shall be used only for tax purposes and kept confidential. Penalty for default of this provision has also been provided.