Income Tax Authorities | lawyers

Concept of income tax authorities

Income tax ordinance 2001 provides details of official bodies appointed to run the income tax machinery of the country. These authorities are called administration of tax system. Authorities who are appointed for proper administration of tax system are called income tax authority.

i- Federal board of revenue

ii- Chief Commissioner income tax

iii- Commissioner income tax (Appeal)

iv- Additional commissioner income tax

v- Deputy Commissioner income tax

vi- Inspector income tax

vii- Supertendant income tax

Federal Board of revenue

Federal board of revenue

Old name of federal board of revenue was constituted under federal board of revenue act 2007. It consists of four members. It has a chairman who is appointed by federal government.

Functions of board of revenue

Following are the powers and functions of federal board of revenue.

i- Power to appoint income tax officer

ii- Power to assign functions and area to income tax authorities

iii- Power to assign duties to commissioner income tax (appeal)

iv- Power to form fiscal policies

v- Power to lay and collect taxes

vi- Power to decide appeals

vii- Power to grant specific method of accounting

viii- Power to make rules for administration

ix- Power to determine procedure of return

x- Power to make rules for deductions

xi- Power to decide applications

xii- Power to transfer income tax authorities

xiii- Power to prescribe form for income tax collection

xiv- Power to constitute committee for alternate dispute resolution

xv- Power to determine basic taxable income

xvi- Power to make rules for valuation

The old name of chief commissioner income tax was original income tax officer. Federal board of revenue appoints chief commissioner income tax. Federal board of revenue has power to income tax returns. It is the power of chief commissioner to call for exemptions. It  is the procedure of the income tax ordinance to return the file.

Chief Commissioner income tax can perform following powers and functions.

i- Power to transfer jurisdiction for specific cases

ii- Power to revise certain orders

iii- Power to call for exemptions

iv- Power to appoint its subordinates

v- Power to delegate his powers

vi- Power to resolve dispute between two commissioners

vii- Power to rectify mistakes

viii- Power to conduct the internal audits.

ix- Power to grant license to practitioners

x- Power to inspect the performance of subordinates

xi- Power to supervise the tax recovery

Commissioner income tax appeal is appointed by federal board of revenue. He deals with appeal matters only.

Tax Exemption

i- Power to admit appeal

ii- Power to adjourn proceedings

iii- Power to allow a new grounds of appeal

iv- Power to call inquiries

v- Power to set aside assessment

vi- Power to confirm assessment

vii- Power to decrease the amount of the assessment

viii- Power to impose penalties

ix- Power to increase amount of assessment

Commissioner income tax can also be appointed by the federal board of revenue. The commissioner has to perform his functions for collection of tax in that area. Where commissioner is appointed for no-specific area, he shall perform his functions accordingly.