SOHAIL SARFRAZ & ISHFAQULLAH SHAWL
ISLAMABAD: The Federal Board of Revenue (FBR) has initially obtained data of a few hundred rich including their assets’ details and properties from National and Database Registration Authority (Nadra), for broadening the tax-base. Sources told Business Recorder here on Wednesday that FBR team headed by FBR Chairman Salman Siddiqui met Nadra officials to discuss the modalities and mechanism for obtaining data of rich people to expand the tax net.
The information may include pictures of the person and information about assets, property and other transactions where CNICs have been used. However, meetings are underway between the two sides and final decision has yet to be taken in this regard.
The authority is expected to provide a web-based system to the FBR for prompt transmission of information about the potential taxpayers to the tax department. However, the final mechanism is yet to be devised. The major concern of FBR is effective utilisation of information available for broadening the tax-base to document genuine potential persons.
The meeting agreed that the Nadra would provide assistance to tax department in providing necessary information to FBR for broadening the tax-base. The Nadra is expected to provide information about the persons living in posh areas and owners of expensive properties to the FBR. According to estimates, over 7 lakh potential persons could be brought into tax net with the help of Nadra. The FBR will analyse the information to decide whether provisional assessment under section 122-C of the Income Tax Ordinance 2001 is needed in such cases or not. The final decision would be taken by FBR to take action against the rich persons, who have neither obtained NTN nor filing income tax returns.
According to sources, the Nadra would assist the FBR in giving details of the persons, who have used computerised national identity card numbers (CNICs) in building assets. The tax department would be in a position to know about the persons, who have purchased expensive properties in posh areas, but paying nothing in the national exchequer, FBR sources added.
When contacted, Tariq Malik, Deputy Chairman of National Database and Registration Authority (Nadr) said that the Federal Board of Revenue (FBR) has sought Nadra’s help to trace the potential taxpayers by using the database. “Nadra will provide them assistance in chasing these people through CNICs and FBR will provide the National Tax Numbers (NTNs) through which Nadra will help in the process,” Tariq Malik said during his exclusive telephonic talk with Business Recorder
By going through the Nadra database, we will be in a position to check people who have no NTN numbers and they will be brought into the tax net, Tariq Malik said, adding that during the meeting Nadra informed the FBR that it has a proposal for broadening the tax, which was appreciated by FBR and declared it doable.
We are fast moving and before signing the Memorandum of Understanding (MoU) and agreements we want to settle all issues so that the process will be started with immediate effect,” Malik maintained. He said that this was a technical session between Nadra and FBR to chalk out a plan for broadening the tax net. The meetings will continue between two sides till finalisation of the plan.
Malik said that Nadra is willing to share information with FBR to help broaden the tax-base and raise the Tax-to-GDP ratio, well placed Nadra sources revealed to this correspondent. “Sharing database with any organisation within or outside Pakistan is totally out of the question, but Nadra can share some basic information for verification purposes and for other matters of national importance with some government institutions including Federal Board of Revenue (FBR),” Malik said in response to a question.
He said that FBR was given a presentation as to how those who evade taxes can be brought into the tax net by using information from the database of Nadra. The FBR was further informed that Nadra database could also play a vital role in bringing potential taxpayers into the net, he said.
It is worth mentioning that the FBR is ready to take strict legal action against 7 lakh most rich and influential persons, who are paying nothing in the form of taxes, after obtaining approval from the Economic Co-ordination Committee (ECC) of the Cabinet. The FBR will not accept any political pressure once the ECC would allow the FBR to launch enforcement against 7 lakh most influential persons.
Source: Business Recorder
Date:2/10/2011
