FBR (federal board of revenue)

 Was known as central board of revenue(1 April 1924): CBR

 Federal law enforcement agency
 Investigate related to tax crime, suspicious about wealth, money laundering
 OPERATES though tax inspector
 Perform role of tax collection from individual and business
 Collects information on tax evasion and administers tax laws(tax laws
implementation and take action if it’s not obeyed)
 2007 CBR changed into FBR.
 FBR act 2007 was passed in 2007 and FBR is operating according to it
 Placed under division of Ministry of Finance

TAX: contribution to state revenue to meet expenditure incurred on welfare of public

(Public ny Lazmi contribute krna ha country ki expenditure ma by paying tax)
Classification of tax (nature)

 Progressive: rate of tax > income rate

 Regressive: rate of tax < income rate
 Proportional: same rate of tax is charge whatever the rate or income is
Type of tax (nature)

 Direct taxes: directly charge and collected from person( income tax, wealth tax,
worker welfare tax)
 Indirect taxes: indirectly charge to person, charge on behalf of taxpayer(Sales tax,
federal excise duty, custom, withholding taxes

Wealth Tax
-Applied on total value of personal assets.
-wealth tax act 1963 was abolished by finance act 2003
-MAT= minimum assets tax
Worker Wealth Tax
-industrial establishment, funds for welfare of worker WWF ordinance 1971
TAX Structure, Tiers of government

BASIC Function of FBR

 Federal government
 FBR
 Members and DGs of 11 customers, 10 land revenue directors: they are almost 7 in
number
 Secretaries and power given to them
 Chief Commissioner
 Commissioner
 Add. Commissioner
 Deputy commissioner
 Assistant commissioner
 Inland revenue office(only enforcement and collection)

Functions of Chairman FBR

1. Formulation and administration of tax policy
2. Enforcement and collection of tax policy
3. Quasi judiciary (adalat laga sakta ha incase if someone breach law) Dispute
resolution
4. Avoid double taxation, treaties are sign between countries
5. Tax collection from Industries, chamber of commerce and international organizations
6. Provide info related FBR activities to PM and President

 Deal with rules regulations interpretations and laws regulations related to sales tax, income,
federal excise duty, income support, capital value and cooperate assets tax
 Formulate and present proposals related to taxes
 In contact with industries and organizations and get info related to Inland Revenue
 Supervise inter-ministries issues related to Inland Revenue
 Coordinate with interprovincial coordination committee
 Shortlist and nominate offices of IRS and IRS training
FBR deals with 3 types of taxes: Federal excise duty, Sales tax, Income tax
Fiscal Laws: laws relating to tax matters, custom, federal, sales tax, income, any other
laws importing tax
ESTABLISHMENT OF FBR Section 3 of FBR 2007
Section4 Functions of FBR
CBR Act 1924 was replaced by FBR act 2007
Federal government: Appoint chairman FBR
Policy for purpose of enhancing in function of board: HR policy
Chairman and 7 members appointed by federal government
Secretary of board appointed by chairman
Meeting: once in 2 months
Can make 1 or more committee

FBR Section 4 of 2007 is about functions of FBR

Basic objective is tax reform and policies for tax department.
a) To implement tax administration reforms()
b) To promote voluntary tax compliance(coins of your name example, government use
your name, attract person) give benefit to tax payer
c) To adopt modern tax administration(file tax return through online system)
d) To improve productivity through human resource (field ma log aa gy to done your
task efficiently and effectively)
e) To identify and select through internal job posting(which function is assign to DG
and divisions are made someone, powers given to them, 21 DGs and divisions are
formed)
f) To grant additional allowances and incentive to members or employs
g) To take appropriate measures including internal controls to combat (stop or reduce)
with internal corruptions.
h) To re-designate existing post and job descriptions (tell them their duties and hire
according to their education, either post is related to post or not)
i) To direct and advice necessary investment at inquiry where tax fraud is suspected
j) To introduce and maintain system of accountability (ehtisab)
k) To implement provisions of all fiscal laws
l) To implement international obligation
m) To establish foundation and fund(whose pay is 40-50k who is unable to build house)
n) To create surplus pool (izafi log declare krna)
o) To make regulation and policy to implement laws
p) To engage any person (tax expert to get service)
q) To regulate and enter into any international organization
r) To create field formation(idary bana diya)
s) To setup system for complaints/ renewal of grievance
t) To carry out any other function
u) To enable electronic communication
v) To perform any other function(federal govt)
w) SROs if any new dep is introduce board will perform duties