FBR Plans to Establish International Centre of Tax Excellence

Objectives and Responsibilities of International Centre of Tax Excellence

The Federal Board of Revenue (FBR) aims to establish an International Centre of Tax Excellence to incorporate independent tax specialists’ expertise in shaping the nation’s tax policies. Under the proposed section “230J” of the Income Tax Ordinance of 2001, the center will have the following main responsibilities:

• Assisting in tax policy formulation
• Designing exemplary national tax laws
• Conducting interdisciplinary analysis of tax administration and policy
• Facilitating cross-border tax collaboration
• Forecasting sales

Functions and Additional Duties

In addition to the main responsibilities, the establishment will perform the following functions:

• Organizing global conferences, workshops, and seminars on crucial topics related to international taxation
• Enhancing the capabilities of inland revenue officers
• Conducting tax analyses
• Improving tax administration planning and execution to maximize income within current legal constraints, aiming to close the tax gap
• Carrying out any additional duties as instructed by the Board or the Federal Government

Governance Structure of International Centre of Tax Excellence

To ensure efficient governance, a Nominating Committee will be constituted. It will consist of the Minister-in-Charge, Secretary of the Revenue Division, and Secretary of Finance. Furthermore, this committee will provide recommendations to the Federal Government for the appointment of an Executive Director and independent members of the Executive Committee. The Executive Committee will include the Chairman of the Federal Board of Revenue, Member (IR-Policy), Member (IR-Operations), and 2 independent members nominated by the Federal Government. The Executive Director will also serve as the Secretary of the Executive Committee.

Read: How Much Is Stamp Duty Tax On Property In Pakistan?

Staff Guidelines and Confidentiality

The staff members of the International Centre of Tax Excellence, including the Executive Director, will adhere to established guidelines. The workforce should consist of a minimum of 50% current or former Inland Revenue officers with at least 5 years of expertise in tax administration or policy.

The Centre will receive necessary information from the Board for processing, analysis, and carrying out its duties. Furthermore, in accordance with the rules specified in sub-section (7) of section 216, as added by the Finance Bill 2023, FBR will keep taxpayer identifying information confidential. However, before transmission to the Centre, the data will be anonymized.

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