The Federal Board of Revenue (FBR) and provincial revenue authorities/boards have agreed to share sales tax data on regular basis to exchange accurate information of input tax adjustment and tax payments to avoid discrepancies in federal and provincial tax-related data. Sources told Business Recorder here on Tuesday that the methodology of sharing information among revenue authorities was discussed during the last meeting of the committee constituted during the inter tax-jurisdictional advisory meeting held between heads of FBR and provincial sales tax authorities of Sindh, Punjab and KP. The committee underscored the need to put in place some sustainable arrangements for regular sharing of data between FBR and the provincial sales tax authorities. The chairman, Punjab Revenue Authority (PRA) opined that sharing of data between the system of FBR and the systems of provincial tax authorities should have two components. The first component should cover the real time inter-system connectivity so that a return filed in one system could automatically be verified on real time basis with reference to the input tax adjustments relating to taxed sales and tax payments (including taxed imports) declared to other systems. The second component should cover a standing arrangement between all the tax authorities including FBR to share data either from within the system or otherwise through a mechanism of requisitioning. Director General, Khyber Pakhtunkhawa Revenue Authority supported the course of action. It was decided that Member (Information Technology), the FBR should be requested to take necessary measures for introducing the said arrangements in consultation with Pakistan Revenue Automation Limited (Pral). The committee deliberated the draft terms of reference (ToRs) formulated by Large Taxpayer Unit (LTU), Islamabad in respect of forensic audit of telecom companies as circulated in advance to the participants. It was decided that all provincial authorities should similarly prepare their own draft ToRs and share with each other. These draft ToRs would he considered so as to develop a consensus version of ToRs in the next meeting. The Chairman of the committee requested the participants to encompass the following aspects while framing their draft ToRs: Audit procedure of telecom companies, LDIs and PTCL; scope and methodology of the proposed joint audit exercise and insertion of legal provisions in Sales Tax Acts/Federal Excise Act. The chairman of the committee requested all the participants to examine relevant legal frameworks to see if there is a need to legislate any new provision for such joint forensic audit of telecom companies. However, if needed, attempt would be made to enact harmonious and mutually complementary legal provisions so as to avoid any probable litigation against the proposed joint forensic audit. brecorder/taxation/181:pakistan/1138697:input-tax-adjustment-payments-fbr-provincial-revenue-boards-to-share-sales-tax-data/?date=2015-01-01
Posted on: Thu, 01 Jan 2015 03:54:03 +0000
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