Tax evasion: FBR relies on third-party databases – Business & Finance

0

ISLAMABAD: The Federal Board of Revenue (FBR) will rely heavily on third-party databases including banks, National Database and Registration Authority (NADRA) and Securities and Exchange Commission of Pakistan (SECP) to detect the evasion tax.

The RBF’s strategic tax revenue reform plan for 2021-2025 launched on Wednesday revealed that public and private sector data can only be used to detect tax evasion with minimal human contact if it is in a standard format. and up-to-date, reflecting economic activity as soon as possible. possible. When the data is accessible without much lag, it makes verification easier and possible. Updated databases will greatly improve the efficiency of using third-party data, reduce administration costs and facilitate taxpayers.

The report states that the economy’s important data-generating processes will be identified and technological bridges will be created with public and private entities performing and managing transactions with computer systems capable of transmitting data to IRS systems. Initially, the focus will be on real estate transactions through non-governmental agencies, banks, NADRA, utility companies, Securities and Exchange Commission of Pakistan (SECP) will be prioritized. The exchange of data will be in real time, or periodic automatic or periodic electronic. Software capability will be developed to facilitate automatic information exchange, data warehousing and analysis.

Data-centric administration will be developed by valuing the importance of data and adopting data-driven decision-making. We will improve our ability to manage existing data and expand our data sources. The risk-based compliance management approach will be based on leveraging data to identify, prioritize and act on compliance risks, FBR said.

Data from other tax authorities across the country, including customs, provincial revenue offices, excise and tax departments, and provincial tax authorities will be integrated with IRS data and systems. The IRS will access data from these databases to make assessments based on the data. The data will be used to set risk parameters for risk profiling. Backward links to customs risk management for cargo clearance will also be provided, FBR said.

Technology bridges would be built between all tax databases to connect taxpayers across taxes for third party information flows, as well as business analytics results and risk management tools for expanding the tax base and effective audits. Consolidated tax profiles containing information on all taxes will be part of the IRIS dossier to be used both in broadening the tax base and in a meaningful audit, he added.

Copyright Business Recorder, 2022


Source link

Share.

Comments are closed.