Chart of Functions

To identify the Withholding Agents; To facilitate issuance of NTN/FTN to unregistered Withholding Agents in respective Regional Tax Office through Pakistan Revenue Automation Limited; To assist FBR in developing an accounting policy for appropriation of the deduction to the Regional Tax Offices / Large Taxpayers Unit having jurisdiction over particular taxpayer(s); To review and recommend suitable (automated) processes and filing structure of withholding statements that is compatible with income tax environment; To suggest to Federal Board of Revenue modification / amendments. Required in the Withholding Tax Regime under the Income Tax Ordinance, 2001, to make them responsive and in accordance with the universally acknowledged principles of direct taxation and best practices. To monitor the certificates of exemption from withholding taxes, issued by concerned tax authorities, for their proper utilization by all concerned. To adopt ways and means to educate and facilitate the prescribed persons (Withholding agents)and other stakeholders in meeting their withholding tax related obligations; To collate information on withholding taxes withheld / collected and deposited for various purposes, by identifying non-NTN holders for broadening of tax base; To perform any other work incidental or necessary to achieve the objectives of the organization and discharge of above functions; To perform such other functions as may be assigned by the Federal Board of Revenue; To check, supervise, ascertain, monitor, reconcile and properly enforce, in whole of Pakistan, the Withholding regime and other relevant provisions of the Income Tax Ordinance, 2001 and Sales Tax of 1990. To adopt ways and means to monitor deduction, collection and payment of tax collected / withheld to ensure their correctness as per law and timely deposit in the Government treasury / State Bank of Pakistan / National Bank of Pakistan; To control possible leakages of Withholding Taxes;14. To investigate cases of non-deduction / short-deduction of Withholding Taxes; To enforce the prescribed statements in respect of taxes withheld and take appropriate action under the law in the cases of defaulters; To maintain proper record of Withholding Taxes and prescribed persons; To verify and cross match the monthly statements of Withholding Taxes with tax deposits / collection, returns / statements / book of accounts / declarations and other information on taxpayers. To get the orders passed under relevant provisions of the Income Tax Ordinance, 2001, imposition of additional tax and penalty and to ensure the recovery of tax not deducted / collected by the withholding agents.

The Central Board of Revenue (CBR) was created on April 01, 1924 through enactment of the Central Board of Revenue Act, 1924. In 1944, a full-fledged Revenue Division was created under the Ministry of Finance. After independence, this arrangement continued up to 31st August 1960 when on the recommendations of the Administrative Re-organization Committee, FBR was made an attached department of the Ministry of Finance. In 1974, further changes were made to streamline the organization and its functions. Consequently, the post of Chairman FBR was created with the status of ex-officio Additional Secretary and Secretary Finance was relieved of his duties as ex-officio Chairman of the FBR.

In order to remove impediments in the exercise of administrative powers of a Secretary to the Government and effective formulation and implementation of fiscal policy measures, the status of FBR as a Revenue Division was restored under the Ministry of Finance on October 22, 1991. However, the Revenue Division was abolished in January 1995, and FBR reverted back to the pre-1991 position. The Revenue Division continues to exist since from December 01, 1998.

By the enactment of FBR Act 2007 in July 2007 the Central Board of Revenue has now become Federal Board of Revenue.