Forms two taskforces: NBR for increasing direct taxes

Staff Reporter :
The National Board of Revenue (NBR) has formed two separate Task Forces on tax with a view to increasing direct taxes by enhancing income tax return submission.

Six tax officials will be the member of each team and a first secretary of the NBR’s tax wing will be the head of the Task Forces, according to official order of the revenue board.

NBR officials said the Task Forces have been formed aligned with the recommendation of the International Monetary Fund (IMF) with a view to increasing dependency on direct taxes.

Although the detail working guidelines are yet to be determined, the two teams are expected to work aggressively with a view to preventing tax evasion in different sectors, the officials added.

Experts, however, expressed their apprehension over the success of the teams.
As per the order, the two Task Forces have been formed to supervise return submission and tax collection of the tax zones across the country.

Especially, they supervise the earnings from source taxes, which contributed around 90 per cent of the total direct tax.

The teams will also submit their recommendations to the NBR on rationalisation and simplification of direct taxes, improvement in tax payer services and redesigning procedures for strengthening enforcement, the guideline showed.

Criminal activities are dynamic and offenders adapt quickly to take advantage of new opportunities for financial gain, frequently outpacing the legislative changes designed to combat them.

Finding better ways to fight financial crime is especially important in times of economic crisis, when the loss of income is all the more damaging to governments, businesses and individuals.

Countering these illegal activities requires financial transparency, effective intelligence gathering and analysis, and improvements in co-operation and information sharing between tax administrations and other financial crime authorities.

The Task Forces will support jurisdictions efforts to combat tax crimes through implementation of the “Oslo Dialogue”-a policy initiative launched in 2013 to promote a ‘whole of government’ approach to fighting tax crime and other financial crimes through standard setting, sharing of best practices, and capacity building, the NBR officials sources said.