The Finance Bill 2024 in Pakistan introduces significant changes empowering the Commissioner of the Federal Board of Revenue (FBR) to enforce stricter compliance measures regarding wealth statements and tax assessments.
According to a tax expert, the Commissioner now wields the authority to demand any individual to furnish a detailed wealth statement, specifying both domestic and foreign assets. This measure aims to enhance transparency and accountability in tax reporting.
Moreover, amendments proposed under the Finance Bill expand the scope of best judgment assessments under section 121 of the Ordinance. This revision includes cases where individuals or entities are required to file tax returns despite discontinuing business operations. The objective is to ensure accurate tax assessment and adherence to obligations, thereby fortifying the integrity of the tax framework.
Highlighting another amendment, the tax expert pointed out the introduction of section 126A through the Tax Laws (Amendment) Act 2024. This section defines the pecuniary jurisdiction for appeals, clarifying that “value of assessment of tax matters” denotes the net increase in tax liability, while “value of refund” signifies the net reduction in refund due to challenged orders.
Initially, cases pending before the Commissioner Appeals were slated for transfer to the Appellate Tribunal effective June 16, 2024. However, due to the sheer volume of cases and the challenges in issuing decisions promptly, the deadline has been proposed to be extended to September 16, 2024. This extension aims to facilitate the orderly transfer of cases without compromising procedural fairness or administrative efficiency.
Overall, these legislative changes underscore Pakistan’s commitment to bolstering tax compliance, streamlining appeal processes, and ensuring equitable tax administration across various sectors of the economy. The amendments seek to modernize tax laws, enhance enforcement capabilities, and foster a more robust fiscal environment conducive to sustainable economic growth.
