Islamabad: The Federal Board of Revenue (FBR) has announced plans to establish an International Centre of Tax Excellence in order to incorporate the expertise of independent tax specialists during the formulation of the country’s tax policies, according to news published in the leading newspaper on June 11.
This initiative will be carried out under the proposed section “230J” in the Income Tax Ordinance of 2001. The primary functions of the International Center of Tax Excellence by FBR, as outlined in the Finance Bill 2023, will include:
Contributing to the development of tax policy
Creating model national tax policies
Conducting interdisciplinary research in tax administration and policy
Facilitating international tax cooperation
Revenue forecasting
Organizing international seminars, workshops, and conferences on pertinent issues faced by tax authorities in the field of international taxation
Enhancing the capabilities of inland revenue officers
Conducting tax analyses
Improving the design and implementation of tax administration to maximize revenue within existing provisions, with the aim of reducing the tax gap
The institute may undertake any other functions as directed by the Board or the Federal Government
To ensure effective governance, a Nominating Committee will be established, consisting of the Minister-in-Charge, Secretary of the Revenue Division, and Secretary of Finance. This committee will be responsible for recommending a panel of candidates for the appointment of an Executive Director and independent members of the Executive Committee to the Federal Government. The Executive Committee will comprise the Chairman of the Federal Board of Revenue, Member (IR-Policy), Member (IR-Operations), and two independent members appointed by the Federal Government. The Executive Director will also act as the Secretary of the Executive Committee.
The employees of the Institute and the Executive Director will adhere to the prescribed rules. It is mandated that at least 50% of the employees must be current or retired Inland Revenue officers with a minimum of five years of experience in tax policy or tax administration.
The Board will provide the Institute with the necessary data for processing, analysis, and fulfilling its obligations. However, this data will be anonymized before transmission to the Institute, and the identifying information of taxpayers will be kept confidential in accordance with the provisions outlined in sub-section (7) of section 216, as introduced by the Finance Bill 2023.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
