The Federal Board of Revenue (FBR) established a high-level technical committee of NADRA and FBR officials on Thursday to work on data integration in order to broaden the tax base.
According to sources, the high-level technical committee will be led by chairman NADRA.
The committee included two senior NADRA officials, including the chief project officer.
Other members of the committee included the CEO of Pakistan Revenue Automation Limited (PRAL) and two senior FBR officials.
The FBR and the NADRA had agreed to broaden their collaboration and share data in order to determine the actual income of existing taxpayers, register new taxpayers, and finalize tax profiles of non-filers.
FBR and NADRA Agreed to Share Information About Taxpayers
According to sources, the FBR and NADRA have resumed consultations on broadening the tax base.
The FBR wished to broaden the tax net by utilizing various types of data.
The goal is to improve data collection in order to identify non-filers of income tax returns.
Based on NADRA data, the actual income of existing taxpayers would be determined, and new people would be registered to broaden the tax net.
Last Year NADRA Shared 3500 Large Profiles of Non-Filers
Last year, the FBR shared with the FBR Operations Wing a list of 3,500 large profiles of non-filers prepared by the NADRA for on-the-ground data verification.
In the past, the NADRA improved the data and communicated it to the FBR in order to broaden the tax base.
Section 175B of the Income Tax Ordinance
According to Section 175B of the Income Tax Ordinance, the NADRA shall share its records and any information available or held by it with the board on its own motion or upon application by the board, for the purpose of broadening the tax base or carrying out the purposes of the Income Tax Ordinance.
The NADRA may
(i) submit proposals and information to the Board with a view to broadening the tax base
(ii) identify in relation to any person, whether a taxpayer or not
- (a) income, receipts, assets, properties, liabilities, expenditures, or transactions that escaped assessment or under-assessed or assessed at a low rate, or subjected to excessive relief or refund or mis-declared or misclassified under a particular head of income or otherwise
- (b) the value of anything mentioned in sub-clause (a) of clause (ii), if such value is at variance with the value notified by the Board or the district authorities, as the case may be, or if no such value has been notified the true or market value
(iii) enter into a memorandum of understanding with the Board for a secure exchange and utilization of a person’s information.
Any information communicated to the board by the NADRA may use and utilize by the board, and such information may be forwarded to an income tax authority having jurisdiction over the subject matter of the information, who may use the information for the purposes of the ordinance.
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