Mohsin Siddiqui (Chief Reporter)

The Federal Board of Revenue (FBR) has encountered delays in issuing three crucial notifications concerning the documentation of the economy, withholding agents, and the integration of financial databases and transactions.

These significant documentation measures encompass the integration of financial data and transactions for 145 organizations, the documentation of transactions by withholding agents, and the online integration of businesses. Although the draft rules (SRO 1771(l)2023, SRO 1846(I)/2023 & SRO1845 (l)2023) for all three measures were released last month, the FBR has yet to issue their final notifications.

Tax experts emphasize that without the issuance of these final notifications, these documentation measures lack legal backing.

The initial SRO 1771(l) 2023, issued on December 5, 2023, focused on draft rules providing real-time access to information and databases for the Board by integrated organizations. Stakeholders were given seven days, until December 12, to submit comments on the draft rules for further amendments in the Income Tax Rules, 2002.

Every integrated organization is required to integrate with the Board’s RADAR by no later than January 15, 2024, or the notified date for integration, ensuring real-time access to economic transaction information.

However, the FBR has not issued the final notification regarding the RADAR’s rules.

The second SRO 1846(I)/2023, released on December 22, 2023, aimed at documenting transactions of withholding agents. The draft of the SWAPS rules for all withholding agents was issued, with stakeholders given seven days to submit comments for further amendments in the Income Tax Rules, 2002.

A notified SWAPS agent is required to install and integrate an approved fiscal electronic device and software, following the prescribed procedure for transactions subject to withholding tax. As of now, the FBR has not issued any final notification for the draft rules under SRO 1846(I)/2023.