Presentation on Federal board of Pakistan

2. Functions of Federal Board of
Revenue

3. Function of Federal Board of
Revenue
Topics:
Introduction
What is FBR
Mission and Vision
Strength of FBR
Organizational Chart
Functions of Federal Board of Revenue
List of chairman of FBR
Members of Federal Board of Revenue
Objectives of Reforms
Needs of Reforms
Tax Reform initiatives in chronological Order
Recommendation
 Income Tax Authorities
 Delegation of Powers
 Guidance to Tax Authorities
 Overview of Website
 Conclusion

4. INTRODUCTION OF FBR
The Central Board of Revenue (CBR) was created on April 01, 1924 through
enactment of the Central Board of Revenue Act, 1924. In 1944, a full-fledged
Revenue Division was created under the Ministry of Finance. After
independence, this arrangement continued up to 31st August 1960 when on the
recommendations of the Administrative Re-organization Committee, FBR was
made an attached department of the Ministry of Finance. In 1974, further
changes were made to streamline the organization and its functions.
Consequently, the post of Chairman FBR was created with the status of ex-officio
Additional Secretary and Secretary Finance was relieved of his duties as ex-
officio Chairman of the FBR.
In order to remove impediments in the exercise of administrative powers of a
Secretary to the Government and effective formulation and implementation of
fiscal policy measures, the status of FBR as a Revenue Division was restored
under the Ministry of Finance on October 22, 1991. However, the Revenue
Division was abolished in January 1995, and FBR reverted back to the pre-1991
position. The Revenue Division continues to exist since from December 01,
1998.
By the enactment of FBR Act 2007 in July 2007 the Central Board of Revenue
has now become Federal Board of Revenue.

5. WHAT IS FBR?
The Federal Board of Revenue (more commonly known by its initials as FBR) is a
semiautonomous federal agency of Pakistan that is responsible for enforcing fiscal
laws
and collecting revenue for the government of Pakistan.

6. MISSION &VISION OF FBRP
 Vision
To be a modern, progressive, effective and creditable organization
for optimizing revenue by providing quality service and promoting
compliance with tax.
 Mission
Enhance the capability of the tax system to collect taxes through
application of modern techniques, providing tax prayer assistance
and by creating a motivated, dedicated and satisfied, professional
work force.
 Value
Integrity -professionalism-Team work-courtesy-fairness-Transparency-
Responsiveness

7. STRENGTH OF FBR
 Collecting nearly 90% of tax revenue of the state
 Contribution towards federal& provincial total
revenue(tax and non tax) is around 65%
 Revenue collected is sufficient to meet 75% to 85%
of government expenditure needs
 Generation of resource for smooth economic
management of federal as well as provincial and local
government
 Keeping the economy vibrant
 Monitors fiscal policy through tax incentive to
encourage flow of FDI

9. FUNCTION OF FEDERAL BOARD OF REVENUE
 Grand exemption from tax to the newly established industrial under taking
&make rules for such exemption.
 Make rules for appointment of valuers & other matters , related to other
smooth functions.
 Make rules for the recovery of tax from a taxpayer who is in a defaulted.
 Make rules for tax credit or certain investments.
 Certify an institution as conducting research in Pakistan .
 Approve schemes regarding employee training .
 Make rules for valuation & taxation of unexplained income or assets.
 Issue circular to tax payers & officers of the board.
 Issue advance ruling on application of a non resident.
 Approve a security for the purposes of taxation of profit debts.

12. Secretary General Revenue Division/chairman
, FBRMr. M Abdullah Yusuf 14-06-2006 23-07-2008

14. MEMBER (INLAND REVENUE - POLICY)
 Deal with all policy matters, rules, regulations, interpretation of
relevant laws and perform all allied functions, relating to Income Tax,
Sales Tax, Federal Excise Duty, Income Support Levy, Capital Value
Tax, Wealth Tax and Corporate Asset Tax; including:
• Exemptions
• Avoidance of Double Taxation Agreements
 Formulate and present proposals relating to Income Tax, Sales Tax,
Federal Excise Duty, Income Support Levy and Capital Value Tax for
annual Finance Bill;
 Liaise with international organizations/ agencies on matters relating to
Inland Revenue;
 Supervise all inter-ministerial issues relating to Inland Revenue;
 Coordinate in matters relating to Inter Provincial Coordination
Committee;
 Process, short list and nominate officers of IRS for IRS specific
training;
 Exercise powers and perform functions of the Board under the
provisions of Sales Tax Act 1990, Income Tax Ordinance 2001,
Federal Excise Act 2005, Income Tax Rules 2002, Federal Excise
Rules 2005 and Sales Tax Rules 2006, as delegated by the Board:.
 Perform any other duty or task assigned by the Chairman, FBR.
Mr. Rehmatullah Khan Wazir

15. MEMBER (INLAND REVENUE - OPERATIONS)
 Deals with revenue targets and manage
operations relating to Inland Revenue;
 Liaise with the Member Customs for WHT on
imports;
 Exercise powers and perform functions of the
Board under the provisions of Sales Tax Act
1990, Income Tax Ordinance 2001, Federal
Excise Act 2005, Income Tax Rules 2002,
Federal Excise Rules 2005 and Sales Tax Rules
2006, as delegated by the Board:.
 Perform any other duty or task Monitor
enforcement and Withholding Tax activities
relating to Inland Revenue;
 To Exercise powers and functions of the Board
under section 214B of the Income Tax Ordinance,
2001.
DR. MUHAMMAD IRSHAD

16. MEMBER (CUSTOMS)
 Deal with all policy matters, rules, regulations, interpretation of
relevant laws and perform all allied functions, relating to Customs,
including:
 Exemptions
 Duty Drawbacks
 Rebates
 Changes/modifications in Pakistan Customs Tariff
 Judicial/Legal Issues
 Formulate and present proposals relating to Customs for annual
Finance Bill;
 Liaise with international organizations/ agencies on matters relating to
Customs; Achieve revenue targets and manage operations relating to
Customs;
 Process, short list and nominate officers of Customs for Customs
specific foreign training;
 Supervise all inter-ministerial issues relating to Customs;
 Exercise powers and perform functions of the Board under the
provisions of Customs Act 1969, Customs Rules 2001 and Customs
Notifications as delegated by the Board:
 Perform any other duty or task assigned by the Chairman, FBR.
Mr. Nasir Masroor Ahmad

17. MEMBER (TAXPAYERS AUDIT)
 Plan and design audit procedures;
 Evaluate tax audits for all domestic taxes;
 Devise and implement Annual National Audit
Plan;
Prepare selection criteria for audit coverage
of higher risk areas;
 Exercise powers and functions of the Board
under Sales Tax Act 1990, Income Tax
Ordinance 2001 and Federal Excise Act,
2005, as delegated by the Board;
 Perform any other duty of task assigned by
the Chairman, FBR.
Ms. Raana Seerat

18. MEMBER (ADMINISTRATION)
 Deals with manage administration of Federal Board of Revenue;
 Recruitment of officers/officials of FBR;
 Transfer/posting of officers (BS-17 and above) of Inland Revenue and
Customs in consultation with the concerned Line Members and with the
approval of the Chairman
 Transfer/Posting of Commissioners (Appeal) and Collectors (Appeal) in
consultation with Member (Legal).
 Short list and nominate officers of FBR for mandatory training such as
MCMC, SMC, NMC and NDU;
 Deal with promotion/ disciplinary/ litigation cases of FBR employees;
 Manage record of FBR employees and HRIS;
 Manage sanctioned strength of FBR employees;
 Development budget and its expenditure under PSDP;
 Manage current budget of FBR;
 Administer expenditure budget of field formations;
 Process all matters relating to official / gratis passports and Exit Control
List (ECL);
 Coordinate in matters relating to the National Assembly, Senate Standing
Committees on Revenue and Finance, Cabinet Decisions and other
Ministries / Divisions.
Mr. Muhammad Majid Qureshi

19. CONT…..
 Manage logistics, vehicles, library, buildings, internal/external security and procurements
pertaining to their repairs/maintenance at FBR (HQ);
 Process all matters relating to purchase/condemnation of vehicles at FBR (HQ) and field
offices;
 Process hiring, de-hiring and rent payment of office buildings at FBR (HQ) and field
offices;
 Process hiring, de-hiring and rent payment of residential accommodations for employees
at FBR (HQ);
 Process re-imbursement of medical claims of employees at FBR (HQ) and field offices;
 Perform/initiate welfare activities for FBR employees;
 Exercise powers and perform functions of the Board under the provisions of Customs Act
1969, Sales Tax Act 1990, Income Tax Ordinance 2001 and Federal Excise Act 2005, as
delegated by the Board:
 Perform any other duty or task assigned by the Chairman, FBR.

20. MEMBER (LEGAL)
 Coordinate with Law Division and Attorney General of Pakistan;
 Maintain and update list of pending cases before the Supreme Court and
High Courts through Appeal Management Processing System and Litigation
Management System;
 Monitor performance of Task Forces constituted for the purpose of
liquidation of sub-judice cases before the Supreme Court and High Courts;
 Monitor performance of CIR (A) and Collector (A) and rationalize their work
load;
 Circulate important judgments of courts to the field offices and place the
same on web;
 Exercise powers and perform functions of the Board under the provisions of
Customs Act 1969, Sales Tax Act 1990, Income Tax Ordinance 2001 and
Federal Excise Act 2005, as delegated by the Board:.
 Perform any other duty or task assigned by the Chairman, FBR.
 To Exercise powers and functions of the Board under section 214B of the
Income Tax Ordinance, 2001 in respect of Orders made by CIR (Appeals)
Mr. Shaukat Ali

21. MEMBER (STRATEGIC PLANNING, REFORMS &
STATISTICS)
 Formulate revenue targets and do strategic planning for
their achievements, in consultation with line members;
 Provide analysis of data relating to collection of taxes i.e.
Direct Taxes, Indirect Taxes, Customs Duty etc. and fiscal
updates on revenue generating efforts;
 Conduct studies, as suggested by other Wings, particularly
sectoral analysis on tax contributions;
 Coordinate with other financial institutions;
 Perform any other duty or task assigned by the Chairman,
FBR
Dr. Muhammad Iqbal

22. MEMBER (HRM)
 Process, short list and nominate officers for local and
foreign training, other than mandatory training and IRS
specific and Customs specific training;
 Deal with all matters relating to Policies & Procedures
for Performance-linked Bonus Schemes, Voluntary
Severance Scheme, Job Descriptions and
Organizational Structure, work force planning;
 Conduct awareness campaigns regarding changes and
issues relating to human resource;
 Perform any other duty or task assigned by the
Chairman, FBR.
Mr. Rozi Khan Burki

23. MEMBER IT (INFORMATION TECHNOLOGY)
 Prepare plan and strategy for FBR in the field of Information &
Communication Technology (ICT).
 Forecast and budget procurement of Software / Hardware / Networks,
in coordination with PRAL;
 Monitor and control software development and implementation by
PRAL / external vendors and grant mandatory prior approval for
initiating new or modifying / enhancing/ shelving existing software
application;.
 Liaise with other Wings of FBR for Business Need Analysis;
 Oversee cleansing of existing data;
 Supervise PRAL’s overall management, including administrative,
financial and technical activities
 Serve as an essential interchange for all communications between
PRAL and FBR(HQ)/ its field offices;
 Spearhead the process of developing the audit methodology to assure
audit quality;
 Exercise powers and perform functions of the Board under the
provisions of Sales Tax Act 1990, Income Tax Ordinance 2001, Federal
Excise Act 2005, Income Tax Rules 2002, Federal Excise Rules 2005
and Sales Tax Rules 2006, as delegated by the Board:.
Dr. Muhammad Iqbal

24. MEMBER (ACCOUNTING)
 Deal with all matters relating to PAC/DAC on Audit
Reports/Performance Audit reports/Special Studies
Reports;
 Deal with all matters relating to DAC on
management/MFDAC (Memorandum for Departmental
Accounts Committee) reports and Financial Attest of
Financial Statements (Revenue Components) for each
financial year;
 Coordinate with Auditor General of Pakistan and Public
Accounts Committee in matters relating to Audit and Vice
Versa;
 Perform any other duty or task assigned by the Chairman,
FBR.
Mrs. Seema Majid

25. OBJECTIVES OF REFORMS
 Mobilize resources as per budgetary projection for improved economic
management
 Widen taxpayers base
 Streamline tax and tariff tax rates
 Improve voluntary compliance and strive to minimize adversarial relationship
between taxpayers and tax collectors through:
 Simplification of tax law s and procedures
 Taxpayer friendly environment
 Making the system more transparent and efficient
 Honest Tax Administration

26. NEEDS FOR REFORMS
 Stagnant Revenue
 Narrow Tax base
 Primitive and antiquated tax administration (cylindrical instead of functions)
 Complexity of tax laws and arbitrariness in their applications
 Relationships between tax payers and tax collectors largely adversarial

27. TAX REFORM INITIATIVES IN CHRONOLOGICAL
ORDER
o May 2001 : Syed Shahid Hussains committee Report
o August 2001: IMF Mission Report
o Nov 2001: The strategy Document on Tax Reform
o Nov 2001: Presentation to the president of Pakistan
o Dec 2001: Approval of Strategy Document
o Feb 2002: Establishment of supervisory council
o Jul 2002: Establishment of Cabinet Committee for Federal Revenues(CCFR)

28. RECOMMENDATION
 Central Board of Revenue to have autonomy within the government structure
 Supervisory council (now CCFR) to monitors and review CBR performance
 Reorganized CBR and its fields offices on functional line
 Merger of Income Tax ,Sales Tax ,Excise functions a step towards co-location
and integration of internal Tax
 Separate handling of large taxpayers
 Improve HRM strategy with respect to induction, promotion, training,
compensation of employees
 Improve physical infrastructure and introduce one + window operations
 Greater stress on taxpayers education, service and facilitation

29. INCOME TAX AUTHORITIES
 The Income Tax ordinance 2001 specifies the provision relating to the various
classes of tax authorities. I t also deals with the provisions regarding
appointment a functions of these authorities. According to these provisions the
following different classes of Income tax Authorities may be appointed:
 Administrative authorities
 Investigation and intelligence authorities
 Training and research authorities
 Internal audit authorities
 Withholding taxes authorities and
 Independent private agencies,.

30. DELEGATION OF POWERS
Delegation of power means the assignment of the powers and functions of an authority
to another authority. As for the sake of its implementation, the whole Ordinance revolves
against the CIR. Thus there was a need to authorize delegation of his function and
powers to his subordinates (covered under the term “ Officer of Inland Revenue.”The
functions and powers of the commissioner may be delegation to an “Officer of Inland
Revenue” in any of the following ways:
 Delegation by Board
The Board may assign all or any of the power and functions of the commissioner in respec
of any person, class of person or area .
 Delegation by Chief Commissioner
The chief commissioner with the approval of Board may assign all or any of the
Powers and functions of the commissioner in respect of any person class of persons or
area.

31. CONT…..
The CIR may delegate all or any of his power and functions under the income
Tax
Ordinance to any “Officer of Inland Revenue” however , he cannot delegate his
power of delegation . It means the officer of inland revenue cannot further
delegate
the powers assigned to him.
 The CIR shall not delegate the powers of amendment of assessment to an
officer below the rank of Additio0nal Commissioner
 The CIR may delegated his power to conduct the audit to a firm of Chartered
Accountant or cost and Management Accountants.
 The order regarding delegation may cover all or any of the persons, classes
of persons
or areas within the jurisdiction of the commissioner
 The CIR has power to cancel or modify the order to issued by him for
delegation of powers.
Where under a delegation order an officer of inland revenue has exercised the
powers and functions of CIR , it is shall be treated that such powers have been
exercised and the functions been performed by the CIR
.

32. GUIDANCE TO TAX AUTHORITIES
During any proceeding under the Income Tax Ordinance the Commissioner
or any Officer of “Inland Revenue” may be assisted guided to instructed by
any authority to which he is subordinate or any other person authorized by
Board in this behalf.

33. Website overview

34. www.fbr.gov.pk