KARACHI: Federal Board of Revenue (FBR) Inland Revenue-Operations (IR) Dr Muhammad Irshad Khan has directed the Regional Tax Office-I (RTO-I) for constituting two teams to verify utility connections availing zero-rating of sales tax by visiting physically to the site.
The officials will be authorized under Section 38 of Sales Tax Act, 1990 to conduct inspection in order to prevent misuse of the facility available under SRO 1125(I)/2011. Section 38 of the act authorizes officers to have access to premises, stock, accounts and records but with the permission of the FBR or IR commissioner concerned.
According to the section: “Any officer is authorized in this behalf by the Board or the Commissioner shall have free access to business or manufacturing premises, registered office or any other place where any stocks, business records or documents required under this Act are kept or maintained belonging to any registered person or a person liable for registration or whose business activities are covered under this Act or who may be required for any inquiry or investigation in any tax fraud committed by him or his agent or any other person; and such officer may, at any time, inspect the goods, stocks, records, data, documents, correspondence, accounts and statements, utility bills, bank statements, information regarding nature and sources of funds or assets with which his business is financed, and any other records or documents, including those which are required under any of the Federal, Provincial or local laws maintained in any form or mode and may take into his custody such records, statements, diskettes, documents or any part thereof, in original or copies thereof in such form as the authorized officer may deem fit against a signed receipt.”
On the other hand, Sources informed that, if any officer found threatening, using illegal means to the taxpayers, traders or the businessman will be charged strictly. The corrupt practices in the FBR field formation are known and the quantum is also much higher.
