The informer or whistleblower registered with the Federal Board of Revenue(FBR) would be entitled to a reward at the rate of 20 percent up to amaximum of Rs. 5 million of the evaded amount of tax involved in a singlecase.
The FBR Friday issued the new Inland Revenue Reward Rules 2021 for InlandRevenue officers including “Informer,” or “Whistleblower” who are notemployees of the FBR.
The informer or whistleblower shall provide information in the shape ofconcrete evidence, which conclusively leadsto the detection of tax evasion, formulation of assessment/reassessment,and eventual recovery of the evaded tax, FBR said.
According to the notification issued here on Friday by the FBR, the newrules have been issued in order to consolidate reward rules issuedseparately from time to time and to put in place a uniform incentivesregime for detection of tax evasion, meritorious services, and any otheroutstanding performance, across the Inland Revenue field formations,detachments, and the headquarters.
The Inland Revenue Reward Rules 2021 have been issued in pursuance to theTax Administration Reforms culminating in the merger of all inland taxesnamely those imposed under The Income Tax Ordinance, 2001, The Sales TaxAct, 1990, The Federal Excise Act, 2006, and The Islamabad CapitalTerritory (Tax on Services) Ordinance, 2001, and the consequent creation ofthe Inland Revenue Service for the purpose of enforcement of andperformance of functions thereof.
Under the new rules, the FBR, at the close of every financial year, maygive rewards to officers/officials inrecognition of the meritorious services rendered by them during the year.The amount of reward for meritorious services in no case will be less than3 and more than 6 salaries in every single case.
The amount of reward for extraordinary performance in no case will be lessthan 12 and more than 24 salaries in every single case i.e. eachofficer/staff involved in the assigned task.
Following types of performance will be eligible for claim of reward underthe Reward Rules:
Detection and assessment/recovery of tax sought to be evaded; meritoriousservices and extraordinary performance and specified statutes.
The term “Meritorious Services” means and includes exceptional performancein any or a combination of the following areas:
Exceeding budgetary targets through extra-ordinary planning and efforts;displaying exceptional results in the recovery of arrears; enlarging thebase of tax-payers by adding a large number of new taxpayers whosecontribution to revenues would be substantial; exceptional performance indefending cases (by the Departmental Representatives) before the ATIR;displaying extraordinary devotion to duty and acumen towards making someoriginal contribution.