Taxation

Administration
INCOME TAX AUTHORITIES (207)

Chapter

02

Board

Regional Commissioner (RCIT)

Commissioner Income Tax Appeals (CIT Appeals)

Commissioner Income Tax (CIT)

Taxation Officers (TO)

• •

Board shall exercise the general administration of this Ordinance. A taxation officer vested with powers of CIT shall be subordinate to RCIT.

• • Who can appoint •

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Chapter

Board may appoint as many authorities and staff as necessary. Any Income tax authority may appoint subordinate authority subject to Board’s directions. All appointments (other than valuers, CAs or experts) shall be subject to rules and orders of Federal Government as applicable on public services and posts.

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APPOINTMENT OF INCOME TAX AUTHORITIES (208)

Powers shall be delegated by written order. RCIT or RCITs shall decide.CA Module C JURISDICTION OF INCOME TAX AUTHORITIES (209) • Jurisdiction • • • • Board shall specify jurisdiction (power. If a question arises about jurisdiction over a person. − carrying on business having principal place in area assigned to him or − residing in his area. Board shall decide. area etc. − He has failed to furnish return after expiry of time allowed in notice for return. 2 Page 2 AUTHORITY OF APPROVAL (212) • By Board • Board may authorize RCIT or CIT to grant approvals required from Board under any provision of Ordinance. Chapter GUIDANCE TO INCOME TAX AUTHORITIES (213) Who may CIT or TO may be assisted. Such delegation may be in respect of person. Succeeding authority may continue the proceedings from the stage at which it was left by the previous one. guided or instructed by any superior financedoctors@gmail. CIT (Appeals) & CIT. Such authorization may be made in General or special order.. Power to amend assessment cannot be delegated to an officer below the rank of Additional CIT.com . classes of persons or are.) of RCIT. When such TO exercises a delegated power. CIT can cancel. In case of disagreement between RCITs. Every Commissioner shall have all the powers in respect of any income arising within area assigned to him. Such jurisdiction may be in respect of persons. Such performance does not prevent CIT from exercising same power. Such commissioner shall have jurisdiction in respect of person. alter or amend delegation order at any time. Jurisdiction may be transferred from one authority to another. − He has filed Income Tax return. modify. classes of persons or are falling under his jurisdiction. such action is deemed to be performed by CIT. Tax officer as CIT • • Jurisdiction of CIT • • Succession of authority • • DELEGATION (210 & 211) • • By CIT • • • • Power exercised after delegation • CIT may delegate all or any of powers to TO (other than power of delegation). Board or RCIT (with approval of Board) may confer or assign powers of CIT to any Taxation officer and such officer shall be subordinate to RCIT. Such person shall be treated as CIT. A person cannot call jurisdiction into question if.

− To authorities exercising powers under law relating to Excise. Companies Ordinance and Foreign Exchange Regulations. Securities and Exchange Commission. Sales tax. − To any Government official for realization of federal or provincial tax. Stamp duty. DISCLOSURE OF INFORMATION BY PUBLIC SERVANT (216) • Status of information • Information contained in any document provided by a taxpayer in respect of tax proceedings shall be confidential and a public servant may not disclose such information except to the extent provided under this Ordinance. Disclosure when permitted • FORM AND NOTICES. accountant or public servant in connection with tax proceedings or related matters. DOCUMENTS ETC.financedoctors. Board shall not issue any order interfering with the discretion of CIT Appeals in exercising his functions. he is treated as having filed to CIT. − To State Bank of Pakistan for compilation of Financial statements. Application to be filed to the CIT can be filed with TO authorize by CIT for such purpose. − To Federal Government ombudsman (a person appointed by FG for investigating complaints by private persons against Government). AUTHORITIES TO FOLLOW ORDER OF BOARD (214) Orders by Board No order interfering appellate authorities All income tax authorities are bound to follow the orders. Customs. − To any foreign Government under tax treaty (tax agreements). accounts and statements and the person (filer) files the same. instructions and directions by the Board. − Relevant to inquiry against a legal practitioner. Subject to the approval of board a public servant may disclose information in following cases. (215) • Delegation by CIT • When CIT delegates power (u/s 210) to receive. certificates. FG or CIT with approval of FG may publish certain particulars and amount of tax paid by certain taxpayers under National Accountability Bureau (NAB).net Chapter 2 Page 3 .Taxation Income Tax Authority or person authorised by Board in course of any proceeding. or to call for and receive return. AUTHENTICATION OF DOCUMENTS (217) www. − To Auditor General of Pakistan or his authorized officer for functions including audit of tax receipts and refunds. − For tax recovery and processing of data relating to return. FURNISHING OF RETURNS. documents.

Validity of notice cannot be challenged after the return to which notice relates has been filed or notice has been complied with.com . • CIT shall make the documents available to public in manner prescribed. statements. • Rectification may be on own motion or on application by taxpayer. • Publication of such documents in the official gazette shall not be Form required. notices. or − Served as a summon under Code of Civil Procedure Such notice may be served on Principal Officer or a member immediately before dissolution. he shall be given opportunity of being heard. before the expiration of financial year next following the date of Chapter financedoctors@gmail. Fraction < 50 paisa shall be ignored. or − Served as a summon under Code of Civil Procedure. When treated served • Notice of • dissolution of AOP Notice of • discontinuance of business • Validity TAX OR REFUND TO BE COMPUTED TO NEAREST RUPEE (219) Fraction • • Fractions 50 paisa shall be treated as one Rupee. If rectification has an adverse effect on taxpayer. tables and other documents required under this Ordinance may be determined by the Board. − Personally served on representative − Sent by registered post or courier service to person’s registered office or address for service of notices under the Ordinance in Pakistan. • SERVICE OF NOTICES AND OTHER DOCUMENTS (218) • Any notice to be served on resident individual (other than in a representative capacity) is treated as properly served when. stamped or written on the notice or document. Notice to person other than resident individual shall be treated as properly served when. shall be considered sufficiently authenticated if the name or Authentication title of CIT or authorised officer is printed. RECTIFICATION (221) Who can rectify Opportunity of being heard Time limit when • CIT. Notices etc. RECEIPTS FROM AMOUNTS PAID (220) 2 Page 4 By CIT CIT shall give a receipt for any tax or other amount paid or recovered under this Ordinance. CIT (appeals) or ITAT (Income tax appellate tribunal). Any order. notice or requisition to be served under section 117 may be served on person discontinuing business or his representative at the time of discontinuance. − Personally served on the individual − To representative of legally disable or non – resident individual or.CA Module C Form. − Sent to specified place or individual’s usual or last known address in Pakistan of individual . returns.

APPEARANCE BY AUTHORISED REPRESENTATIVE (223) When AR An AR may represent taxpayer before CIT. CIT shall provide such person an opportunity of being heard before making the order. He shall be allowed to file an appeal with Board. www. Who can − A chartered accountant be AR − A cost and management accountant − An ACCA − A member of Society of Incorporated Accountants London − A member of ICAEW An Income tax practitioner i.2009. If appeal is filed he can be representative till the decision of Board. Mistakes shall be deemed to have been rectified in favor of taxpayer. Within 5 years of order to be rectified.financedoctors. represent Person AR Company Principal officer AOP Principal officer or member Trust Trustee Local authority. Government Personal responsible for accounting receipts and payments Others • Relative • Full time employee • Bank officer dealing with taxpayer • Legal practitioner • An accountant i.2007 the last date of rectification is 30.e.6.e.Taxation rectification is applied by taxpayer Time limit for other rectification Effect of no rectification order application for rectification i. • Employee resigning from tax department till two years of resignation. for application dated 15. • Employee dismissed from tax department. cannot • Person guilty of misconduct regarding tax proceedings for a period be AR determined by CIT in writing.e.net Chapter 2 Page 5 .CIT (appeals) or ITAT unless can personal attendance of taxpayer is required. • Insolvent till his insolvency continues.10. a person registered by Board as ITP having prescribed qualification or service with tax department for 10 years or more in capacity of TO or higher. APPOINTMENT OF EXPERT (222) By CIT CIT shall appoint any expert as necessary for this Ordinance including for the purposes of audit or revaluation. • Employee retired from Tax department till one year if he was involved in Who taxpayer’s tax proceedings within one year before retirement.

punishment shall be decided by the relevant authority. I Chapter 2 Page 6 financedoctors@gmail.com .CA Module C • In case of misconduct by accountant or legal practitioner.