The Federal Board of Revenue (FBR) is the central revenue collection agency of Pakistan. It is responsible for administering the country’s tax laws, collecting taxes from individuals and businesses, and investigating and prosecuting tax evasion.
The Federal Board of Revenue has a wide range of powers under the law, including the following:
- Power to assess and collect taxes: The Federal Board of Revenue has the power to assess taxes on all individuals and businesses that are liable to pay tax under the law. It can also collect taxes directly from taxpayers or through withholding agents.
- Power to investigate tax evasion: The Federal Board of Revenue has the power to investigate any person or entity suspected of tax evasion. It can conduct audits, search and seizure operations, and compel taxpayers to produce documents.
- Power to prosecute tax evaders: The Federal Board of Revenue can prosecute tax evaders in court and seek penalties, including fines and imprisonment.
- Power to regulate the tax profession: The Federal Board of Revenue has the power to regulate the tax profession by issuing licenses to tax practitioners and enforcing professional standards.
- Power to make rules and regulations: The Federal Board of Revenue has the power to make rules and regulations to implement the tax laws.
In addition to these general powers, the Federal Board of Revenue also has specific powers under each of the major tax laws, such as the Income Tax Ordinance, 2001, the Sales Tax Act, 1990, and the Federal Excise Act, 2005.
Some of the specific powers of the Federal Board of Revenue under the tax laws include:
- The power to require taxpayers to file tax returns and provide other information.
- The power to inspect taxpayer premises and records.
- The power to seize taxpayer assets.
- The power to grant tax exemptions and concessions.
- The power to enter into tax treaties with other countries.
The Federal Board of Revenue’s powers are essential for it to be able to effectively collect taxes and enforce the tax laws. However, it is important to note that the Federal Board of Revenue’s powers are also subject to judicial review. This means that taxpayers have the right to challenge the Federal Board of Revenue’s actions in court if they believe that their rights have been violated.
Overall, the Federal Board of Revenue has a wide range of powers under the law to collect taxes, investigate tax evasion, and prosecute tax evaders. These powers are essential for the Federal Board of Revenue to be able to effectively enforce the tax laws and collect the revenue that the government needs to fund its programs and services.