ISLAMABAD: The Federal Board of Revenue (FBR) has released a draft proposing further amendments to the Income Tax Rules 2002 including a new mechanism for filing tax returns electronically under Section 143 of the Income Tax Ordinance 2001.
Under the proposed system, non-resident ship owners, charterers and authorized shipping agents would be required to file their Section 143 returns electronically through the FBR’s computerized IRIS system.
Relevant documents, certificates, statements and electronic records would also have to be submitted with the return.
The proposed rules have been issued for public feedback. Stakeholders can submit objections and suggestions to the FBR within seven days of the draft’s publication in the official gazette.
The draft proposes linking IRIS with the Pakistan Single Window (PSW). Once a Vessel Information Report (VIR) is received through PSW, key vessel and shipping information would automatically be transferred to IRIS. The system would then generate a single electronic return against each unique VIR.
The return would include details of the relevant NTN holders, total voyage-related income and applicable tax payments. Revenue could include freight, container detention charges, container service charges, terminal handling fees and other taxable receipts.
Shipping agents and other relevant parties would generate Payment Slip Identification Numbers (PSIDs) against the VIR and make the required payments.
After payment, a Computerized Payment Receipt (CPR) would be issued automatically and electronically linked with the relevant return.
A return could not be submitted until all required payments had been made and the relevant CPRs attached. Requests for an extension would have to be submitted before the vessel’s departure along with reasons, expected taxable income, estimated tax liability and acceptable security.
The proposed framework would also allow the FBR to use PSID and CPR information for assessment, audit, verification, enforcement and recovery proceedings.
The draft further states that tax recovery under Section 143 would be pursued against the authorized shipping agent while preserving the agent’s right to recover the amount from other responsible parties under the law.
