Raja Abdul Rafay’s Post

The Federal Board of Revenue (FBR) has clarified that there will be no reduction in the values of immovable properties in Karachi under the newly issued S.R.O. 1724(I)/2024. Earlier, there was some confusion regarding potential reductions in property values. However, the FBR has categorically stated that the previous rebate system has been discontinued. Tax experts have sought further clarification from the FBR regarding the applicability of previous rebates, particularly for additional storeys in residential buildings and old constructions. The Regional Tax Office-I in Karachi has confirmed that the new notification supersedes the previous one and that no reductions will be allowed. This clarification is crucial for property owners and taxpayers in Karachi, as it will impact their tax liabilities. It is advisable to consult with tax professionals to understand the implications of the new valuation table and ensure compliance with tax regulations. #TaxNews #FBR #TaxationPk #TaxLaws #PropertyValuation

LTO Karachi Unearths Rs 5 Billion Tax Evasion. The Large Taxpayers Office (LTO) in Karachi has exposed a substantial sales tax evasion scheme, resulting in a Rs 5 billion deficit in the national treasury. The investigation, spearheaded by Zone-I authorities, has led to multiple arrests and legal proceedings. The spotlight has been on M/s A.H Impex, with the LTO's jurisdiction being established in December 2023. Through meticulous scrutiny, paper transactions totaling Rs 30 billion over a span of two years were unveiled. Noteworthy is the fact that this marks the inaugural FIR filed against a major corporation by the LTO Karachi. Nawab Khan stands accused of orchestrating the issuance and receipt of counterfeit invoices, consequently leading to financial losses via refunds and tax adjustments. Jahanzeb Mahar #TaxPolicy #TaxCompliance #PakistanEconomy #FiscalResponsibility #accountants #auditors #smallbusiness #smallbusinessowner #scounts

𝐂𝐎𝐔𝐑𝐓 𝐓𝐎 𝐇𝐄𝐀𝐑 𝐓𝐀𝐗 𝐅𝐑𝐀𝐔𝐃 𝐂𝐀𝐒𝐄 𝐀𝐆𝐀𝐈𝐍𝐒𝐓 𝐓𝐑𝐀𝐂𝐓𝐎𝐑 𝐌𝐀𝐍𝐔𝐅𝐀𝐂𝐓𝐔𝐑𝐄𝐑 A Special Judge in Customs & Excise Taxation Karachi will address a tax fraud case against a leading Lahore-based tractor manufacturer on August 27, 2024. The CEO of the company is accused in FIR Number 1 of 2022. The case involves alleged tax fraud through fake sales tax invoices, as reported by the Sindh Chamber of Agriculture. The CEO is accused of defrauding farmers of billions by not providing benefits from specific tax reliefs (SRO.1248(I) 2020 & SRO.563(I) 2022). Proceedings will include framing charges, recording statements, addressing arrest warrants, and bail confirmations. The Large Taxpayer Office (LTO) Lahore audited the company, finding Rs. 13.286 billion in sales tax discrepancies and imposing a Rs. 5.414 billion penalty. The audit revealed fraudulent sales tax invoices used to understate tax liabilities. The final report submitted by the Investigating Officer highlights a scheme of fictitious transactions and collusive arrangements among various companies. The director of a implicated company is named in the charges connected to FIR No: 01/2022. The interim report indicates multiple beneficiaries involved in the fraud. DTF. #mtl #fraud #investigation #Tractor #pakistan

At its core, the scheme proposes an interesting approach to tax compliance, focusing on a segment of the economy that's traditionally been tough to regulate. The requirement for these businesses to register via the Tax Asaan App or FBR's platforms, and the move towards a monthly advance tax based on the annual rental value of business premises, marks a significant shift towards formalizing small-scale trade operations. However, reflecting on past efforts to widen the tax net and enhance compliance among small traders and shopkeepers, the path ahead seems fraught with challenges. The sector's historical reluctance towards formalization, coupled with the logistical hurdles in accurately assessing and collecting advance taxes, raises questions about the feasibility of this ambitious scheme. The decision to calculate advance tax based on the rental value of business premises could indeed streamline the process but also risks oversimplifying the diverse economic realities faced by traders in different locales. A one-size-fits-all approach may not be the most effective way to ensure equity and efficiency in tax collection. The success of efforts to expand the tax base will be revealed over time. #fbr #pakistan #incometax

Federal Board of Revenue (FBR) has announced the launch of the "TAJIR DOST SCHEME", aimed at small traders and shopkeepers and has issued a Draft Special Procedure for the scheme vide SRO 420(I)/2024. The scheme is designed to facilitate these businesses in compliance with tax regulations and streamline the tax payment process. 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐒𝐜𝐡𝐞𝐦𝐞: The scheme apply to small traders and shopkeepers, specifically excluding companies, operators of national or international chain stores, and any other entities as may be specified by the FBR. It targets businesses in major cities including Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar. 𝐌𝐚𝐧𝐝𝐚𝐭𝐨𝐫𝐲 𝐑𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧: Small traders and shopkeepers can register for the scheme through the Tajir Dost module available on the Tax Asaan App, the FBR e-portal, or by visiting FBR's Tax Facilitation Centers. The deadline for registration is set for April 30, 2024. 𝐌𝐨𝐧𝐭𝐡𝐥𝐲 𝐀𝐝𝐯𝐚𝐧𝐜𝐞 𝐓𝐚𝐱 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬: From July 1, 2024, taxpayers under the scheme are required to pay a monthly advance tax, which will serve as a minimum tax. The method for calculating this advance tax is to be prescribed by the Board. Apparently, the calculation of advance tax will be based on the annual rental value of the premises from which these businesses operate, although the specific formula is yet to be announced by the FBR. This information is provided to keep relevant stakeholders informed about the new procedural requirements and upcoming tax obligations under the TAJIR DOST SCHEME. #FBR #PAKISTAN #TRADERS #INCOMETAX #TAX

Federal Board of Revenue (FBR) has introduced the "TAJIR DOST SCHEME," targeting small traders and shopkeepers, to enhance tax compliance and simplify the taxation process. This initiative aims to assist these businesses in fulfilling their tax obligations effectively. Key Points of the Scheme: Eligibility: The scheme is applicable to small traders and shopkeepers, excluding corporate entities, national or international chain stores, and other specified entities by the FBR. It primarily caters to businesses in major cities such as Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar. Registration Process: Small traders and shopkeepers can register for the scheme using the Tajir Dost module accessible on the Tax Asaan App, the FBR e-portal, or by visiting FBR's Tax Facilitation Centers. The registration deadline is April 30, 2024. Monthly Advance Tax Payments: Starting from July 1, 2024, participants of the scheme must make monthly advance tax payments, serving as a minimum tax requirement. The FBR will specify the method for calculating this advance tax. It appears that the calculation will be based on the annual rental value of the business premises; however, the exact formula is yet to be announced. This communication aims to inform relevant stakeholders about the new procedural guidelines and upcoming tax responsibilities under the TAJIR DOST SCHEME. #tajirdostscheme #fbr #Advancetax

The Federal Board of Revenue (FBR) has announced the ini­tiation of tax collection under the newly proposed Tajir Dost Scheme for small traders and shopkeepers, slated to com­mence on July 15, 2024. The scheme, initially launched in six major cities including Islamabad, Rawal­pindi, Karachi, Lahore, Quet­ta, and Peshawar, holds po­tential for future expansion. Under the Tajir Dost Scheme, monthly advance tax pay­ments will kick off on July 1, 2024, with the first payment due on July 15, 2024. Subse­quent payments will be due on the 15th of each follow­ing month, facilitating con­venient payments through a dedicated computerized sys­tem using a Payment Slip ID (PSID) generated by the Ta­jir Dost module or the FBR’s online portal, a private news channel reported. Traders and shopkeepers participat­ing in the scheme will be re­quired to make monthly ad­vance tax payments, serving as a minimum tax on income derived from covered busi­nesses. The FBR will specify the calculation method for monthly advance tax, aiming to provide a simplified tax regime to encourage compli­ance and bolster the coun­try’s economic development.

🚨 **Significant Decision by the Appellate Tribunal Inland Revenue (ATIR) in Karachi** 🚨 In a landmark ruling, the ATIR has determined that no super tax is payable on income under the Final Tax Regime (FTR) for exporters. 🔹 **Case Background:** A textile exporter challenged the Commissioner Inland Revenue's assessment, leading to this pivotal decision. 🔹 **Key Points:** - The ATIR confirmed that income under the FTR is exempt from super tax. - Imputable income included in the tax computation under section 4C of the Income Tax Ordinance 2001 is not subject to super tax. - The taxpayer argued that section 4C does not have an overriding effect, noting the absence of the term "NOTWITHSTANDING" in the section. 🔹 **Precedent:** The Islamabad High Court had previously ruled in favor of the taxpayer in a similar case involving M/s Fauji Fertilizer Company Limited. 🔹 **Implications:** This decision could significantly impact other exporters dealing with comparable tax issues. Stay tuned for more updates on this developing story! #TaxLaw #Exporters #SuperTax #ATIR #FTR #Karachi #TextileIndustry #IncomeTaxOrdinance #RashidRafique&Co.CharteredAccountants

Businesses Urge FBR to Revisit Controversial Tax Regulation (SRO 350) The Karachi Chamber of Commerce & Industry (KCCI) has called on the Federal Board of Revenue (FBR) to revisit regulation SRO 350(I)/2024 due to concerns and disruptions within the business community. Key Points of the Dispute: Unresolved Issues: The KCCI president points out unresolved aspects of SRO 350, causing confusion and anxiety among businesses. Stakeholder Consultation: The KCCI urges the FBR to engage with stakeholders to address concerns and find a solution. Impact on Supply Chains: The regulation’s linkage between buyer and supplier tax compliance could disrupt supply chains if non-compliance occurs at any stage. Balance Sheet Submission: Businesses are worried about submitting balance sheets under SRO 350, fearing inconsistencies with previously filed tax returns and added complexity to compliance. Call to Action: The KCCI president has requested the FBR chairman to visit Karachi or arrange an online meeting to address these issues and prevent potential business disruptions. Possible Future Implications: Regulation Changes: Depending on the outcome of discussions, SRO 350 could be amended, clarified, or repealed. Business Adjustments: Businesses may need to adjust their practices to comply with any revised regulations. #TaxRegulation #SRO350 #FBR #KCCI #KarachiChamber #BusinessCommunity #TaxCompliance #SupplyChain #StakeholderConsultation #BalanceSheet #TaxReturns #BusinessDisruptions #RegulatoryUpdate #PakistanEconomy #TaxPolicy #BusinessNews #ComplianceChallenges #TaxReform #EconomicImpact #BusinessConcerns #FBRMeeting

The Karachi Tax Bar Association (KTBA) has addressed a critical issue with the FBR regarding the IRIS portal glitch affecting tax return revisions. Their swift action and advocacy highlight their commitment to supporting taxpayers and ensuring efficient tax processes. #TaxBar #FBR #TaxpayerSupport #KarachiTaxBar #TaxSystem #FBR #IRISPortal #TaxFiling #TaxUpdates #KarachiTaxBar #TaxGlitch #TaxpayerSupport #PakistanTax #SalesTax #TaxRevision #BarAssociation #TaxSystem #CondonationApplication #TaxAdvocacy