Topic Income Tax Authorities

Topic Income Tax Authorities
Introduction
For the proper and efficient working of any system, it is necessary that properly qualified persons are
appointed at different levels so that they can guide the activities to achieve the desired results. This is
necessary for all organizations whether in public or private sector. For the proper administration of
taxation system also, the government needs qualified persons. Income Tax Ordinance, 2001 provide us
the detail of officials and bodies appointed to run the Income tax machinery of the country income tax.
AUTHORITES
There shall be the following Income tax Authorities for the purposes of this Ordinance and rules made
there under, namely:
 Board
 Chief Commissioner Inland Revenue
 Commissioner Inland Revenue
 Commissioner Inland revenue (Appeals)
 Additional Commissioner Inland revenue
 Deputy Commissioner Inland revenue
 Assistant Commissioner Inland revenue
 Special Audit i) Officer Inland revenue
 Inland revenue Audit Officer
 Superintendent Inland revenue
 Inspector Inland revenue
 Auditor Inland revenue
Some above authorities

 Director General (Information Management System)
 Director General (Intelligence and Investigation)
 Director General (Inspection and Audit) (Direct Tax)
 Director General (Human Resource Management)
 Director General (Training and Research)
 Appellate Tribunal Inland Revenue
 Valuers
Federal Board OF Revenue (FBR)
Introduction:
The old name of Federal Board of Revenue (FBR) was central Board of Revenue (CBR).Income
Tax Ordinance, 2001, uses the word ‘Board’ for CBR and FBR .Board is the highest tax authority
in Pakistan. It has the Jurisdiction to exercise the General Administration of the Income Tax
Ordinance, 2001. It is constituted under the provisions of the Federal Board of Revenue Act,
2007.All other tax authorities are appointed by Board History the Central Board of Revenue
(CBR) was created on April 01, 1924 through Enactment of the central board of revenue Act,
1924. In 1944, a full-fledged Revenue Division was established under the Ministry of Finance.
After Independence, this arrangement continued up to 31st August 1960 When on The
recommendations of the Administrative Re-organization Committee, CBR was made an attached
department of the Ministry of Finance.
Power and function of the Federal Board of Revenue.
1. Declare Tax Period

The Federal Board of Revenue can declare a period to be treated as specific Tax year in case of
any person or class of persons or any source of income
2. Appointment of Auditor
The Board appoints a firm of chartered accountants or cost and management accounting to
conduct the audit of any person.
3. Appointment of Surveyor
The Board can appoint any private agency, firm or company to carry out survey In respect of
specified persons or areas as deemed fit by the Board.
4. Approval of Charitable Institution

It can oppose the charitable institutions for the purpose of income tax Ordinance especially for
donation purposes.
5. Approval for Funds

The federal Board of revenue can exercise power regarding recognized Provident funds,
approved superannuation funds and approved gratuity funds
6. Unexplained Income or Asset.
The Board can make rules for valuation and taxation of unexplained Income or Asset.
7. Power Make Rules

The Board has the power to make the rules for carrying out efficient Administration of the
Ordinance by notification in the Official Gazette.
8. Procedures for Furnishing Returns

The Board determines the procedure for furnishing returns and other documents including on
electronic on electronic medium or issuing notes or levy of default Surcharge through electronic
medium.
09. Preparation of prescribed Forms

The board has the power to prepare prescribed forms, etc for the purpose of The Income tax
Ordinance 2001.
10. Distribution of work

It can allocate functions and distribute work to be performed, if the same Function in respect of
the same persons or area has been assigned to two or Income tax authorities
11. Circular issued by Board

For the purpose of the interpretation of the income tax Ordinance, Board many Issued circulars
for the guidance of tax payers and its officials.
12. Selection for audit by the Board

The board has the powers to select person or classes of persons for audit of Income tax affairs
through computer ballot which may be random or Parametric on the discretion of the Board.
Commissioner Authorities
Commissioner
Commissioner means a person appointed by the Board as Commissioner Inland Revenue according to
the rules and orders of Federal Government.
Power and function of the Commissioner Inland Revenue
1. Tax on retirement payment
CIR allow an employee to pay tax on his retirement payments and golden Handshake as per normal
procedure or pay tax on the basis of average rate of Tax based on the three preceding tax years
2. Salary in arrears
CIR allows an employee to pay tax on salary received in arrears in the tax year In which services
were rendered.
3. Permission of Tax Year

The CIR can allow a person to use special tax year instead of normal tax year Or vice versa while
permitting such change the Commissioner may also Impose any condition.
4. Furnish the Return of Income

The CIR can require a person or his representative to furnish the return of Income
5. Power to require wealth statement

The CIR may require any taxpayer to provide wealth statement.
6. Notice of discontinued business

The CIR can require a person to furnish the return if the business is Discontinued and the person has
not furnished his return of income.
7.Extension of time furnishing return

The CIR cans extent the time for filing the return of income on the written Request of the tax payer.
8. Amended Assessment order

The CIR has the power to make an amended assessment order
9. Provisional Assessment
If the tax payer does not file the return of income in spite of a notice by the Income tax authorities,
CIR can make provisional assessment in this case.
10. Notice for collection of tax
CIR issues all notices necessary for collecting of tax from the tax payer. E.g. Recovery of tax from
liquidated of a company which has gone into laudation.
11. Refund of excess tax paid

Adjust the amount of excess tax paid by a taxpayer and if there is any Balance after the adjustment
of any other tax liability refund the same To the taxpayer
12. Appointment of subordinate authority
CIR can appoint any of his subordinate authority with the approval of Board
13. Transfer of Jurisdiction
He is empowered under the law to transfer jurisdiction from one subordinate Income tax authority
to another
14. Recovery of tax
The CIR issue notice to recover the tax from a person who holds money on Behalf of the tax payer.

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Topic Income Tax Authorities

Some above authorities

Power and function of the Federal Board of Revenue.

1. Declare Tax Period

4. Approval of Charitable Institution

5. Approval for Funds

7. Power Make Rules

8. Procedures for Furnishing Returns

09. Preparation of prescribed Forms

10. Distribution of work

11. Circular issued by Board

12. Selection for audit by the Board

3. Permission of Tax Year

4. Furnish the Return of Income

5. Power to require wealth statement

6. Notice of discontinued business

7.Extension of time furnishing return

8. Amended Assessment order

11. Refund of excess tax paid

12. Appointment of subordinate authority

13. Transfer of Jurisdiction

14. Recovery of tax

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