The Federal Board of Revenue (FBR) will establish an International Centre of Tax Excellence to have the input of independent tax experts while drafting the tax policy of the country.

Under the proposed section “230J” in the Income Tax Ordinance 2001, there shall be established an Institute to be known as the International Centre of Tax Excellence.

The Finance Bill 2023 revealed that the functions of the Institute shall be to help contribute to the development of tax policy, prepare model national tax policy, deliver interdisciplinary research in tax administration and policy, international tax cooperation, revenue forecasting, conduct international seminars, workshops and conferences on the current issues faced by tax authorities in the field of international taxation, capacity building of Inland Revenue Officers, tax analysis, improve the design and delivery of tax administration for maximizing revenue within existing provisions to close the tax gap or any other function as directed by the Board or the Federal Government.

There shall be a Nominating Committee comprising the Minister-in-Charge, Secretary Revenue Division, and Secretary Finance which shall be responsible for recommending a panel to the Federal Government for the appointment of an Executive Director and independent members of the Executive Committee. There shall be an Executive Committee comprising the Chairman, Federal Board of Revenue, Member (IR-Policy), Member (IR-Operations), and two independent members to be appointed by the Federal Government. Executive Director shall act as Secretary of the Executive Committee.

The Nominating Committee shall apply the prescribed criteria for making recommendations of the panel for the Executive Director and independent members of the Executive Committee.

The Executive Director and independent members of the Executive Committee shall be appointed by the Federal Government.

The Executive Director shall also be the Chief Executive of the Institute and shall work to ensure efficient functioning and day-to-day administrative functions of the Institute and shall be independent in the discharge of its functions specified.

The Executive Committee, for every fiscal year, shall assign the requirements of the Board to be undertaken by the Institute, during the year. The Executive Committee shall prescribe rules for recruitment of y other function as directed by the Board or the Federal Government.

The employees of the Institute and the Executive Director shall act in accordance with the rules. At least fifty percent of the employees shall be serving or retired Inland Revenue officers having at least 5 years of experience in tax policy or tax administration.

The remuneration and term of employment of the employees of the Institute shall be as prescribed by the Federal Government. The Board may establish a committee to monitor the establishment of the Institute including the appointment of the Project Director for the purpose.

The Board may provide such data to the Institute as is necessary for processing and analysis and for discharging its obligations. Provided that such data shall be anonymized before transmission to the Institute and identifying particulars of the taxpayers shall be kept confidential and provisions of sub-section (7) of section 216 shall apply accordingly, Finance Bill 2023 added.

Source: Pro Pakistani