NBR makes ASYCUDA System data mandatory for income tax assessment
Commissioners and inspecting range officers will be able to log into the BI Server from designated IP-bounded computers and the data must be regularly recorded in a specified register by the inspecting range officers.
The National Board of Revenue (NBR) has made it mandatory to use information from the ASYCUDA System in determining income tax to ensure greater transparency and accuracy in tax assessment.
In a press release issued today (5 March), the NBR said instructions have been given to collect actual data on the value of imported goods and advance income tax (AIT) paid at the import stage from the Business Intelligence (BI) Server of the ASYCUDA System and use those data while assessing income tax liabilities.
To this end, an order was issued yesterday (4 March) for all tax zones under the Income Tax Wing of the NBR. The order provides detailed guidelines for income tax officials on using the BI Server of the ASYCUDA System.
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According to the directive, while selecting cases for audit, approving the reopening of cases under the Income Tax Act by inspecting joint or additional commissioners, or issuing correction orders for erroneous assessments by inspecting range officers, the concerned range officers must collect relevant data from the BI Server if the taxpayer is an importer.
They will gather information on the value of imported goods and the actual amount of advance income tax paid at the import stage and inform the respective circle officers in writing for assessment purposes.
Commissioners and inspecting range officers will be able to log into the BI Server from designated IP-bounded computers. The data collected from the server must be regularly recorded in a specified register by the inspecting range officers.
Initially, assessing officers will not have direct access to the BI Server; instead, the information will be provided through the Inspecting Range Officers.
The NBR said using data from the ASYCUDA System's BI Server will enable easy verification of the quantity and value of imported goods and the advance income tax collected at the import stage during the disposal of income tax cases.
It will also ensure transparent and accurate credit of advance income tax, help prevent tax evasion, increase revenue collection, and facilitate faster disposal of income tax cases with greater transparency and accountability.
The move will also make the income tax refund process more transparent, simpler and quicker, the release added.
The NBR expressed hope that the initiative would usher in a new era of information exchange between the Customs and Income Tax wings.
If successfully implemented, it will ensure transparency in the tax assessment process and reduce unnecessary harassment of businesspersons, the release said.
