INCOME TAX AUTHORITIES:

Section 207 to 214 of the Income Tax Ordinance, 2001 deal with the topic of Income Tax Authorities.
The various classes that may be appointed, specified by chapter IX of the Income Tax Ordinance, include
the following:
Administrative authorities

FEDERAL BOARD OF REVENUE:

It is established under section 3 of the Federal Board of Revenue Act, 2007. Previously known as Central
Board of Revenue.
It is the highest income tax authority in Pakistan which authorizes the general administration of Income Tax
Ordinance, 2001.
It has the authority to appoint all other tax authorities.
FUNCTION:
Newly established industrial undertakings are granted exemptions. Rules are made for such new
exemptions.
New industrial undertakings:
INDUSTRIAL UNDERTAKING:
(a) An undertaking which is set up in Pakistan and which employs,
(i) ten or more persons in Pakistan and involves the use of electrical energy or any other form of energy
which is mechanically transmitted and is not generated by human or animal energy; or
(ii) twenty or more persons in Pakistan and does not involve the use of electrical energy or any other form of
energy which is mechanically transmitted and is not generated by human or animal energy; and which is
engaged in,
(i) the manufacture of goods or materials or the subjection of goods or materials to any process which
substantially changes their original condition; or
(ii) ship-building; or
(iii) generation, conversion, transmission or distribution of electrical energy, or the supply of hydraulic
power; or
(iv) the working of any mine, oil-well or any other source of mineral deposits; and (b) any other
industrial undertaking which the Board may by notification in the official Gazette, specify.

It makes rules for appointment of valuers and their smooth functioning

Rules for recover of tax from tax payer who is in default
Make rules for tax credit for certain investments
Certify an institution conducting research in Pakistan

Topics of focus of tax authorities

Tax authorities focus on the following issues:

 WHT.
 Transfer pricing.
 Relationship of expenditure with the business of the taxpayer.
 Advance tax.
 Payment of tax due within the time prescribed.
 Audit of returns filed.
 Compliance by taxpayers.
 Collection of arrears.
 https://taxsummaries.pwc.com/pakistan/corporate/tax-administration
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