FBR notifies Inland Revenue Welfare Funds Rules, 2016

KARACHI: The Federal Board of Revenue (FBR) has notified Inland Revenue Welfare Funds Rules, 2016, which will apply to central inland revenue fund maintained at FBR headquarters and regional inland revenue welfare funds maintained at all inland revenue formations.

The Central Inland Revenue Welfare Fund Board, comprising Member IR-Operations as chairman, senior most member of FBR from IR and Chief Management- IR as members and secretary to Member IR as secretary, will act as governing body of the regional inland revenue welfare funds of all formations. The Board will grant approvals of proposals and requests from the regional IR welfare fund boards. The Board would also look after the IR Welfare Fund activities at FBR Headquarters.

There will be regional IR welfare fund boards in each large taxpayers unit (LTU) and regional tax office (RTO) and Directorate Generals, which shall consist of Chief Commissioner or Director General as chairman and one officer of BS-17-18, one official of BS-7 to BS-16 and one official of BS-1 to BS-6 as members while Additional Commissioner or Additional Director would be the secretary.

The Central Inland Revenue Welfare Fund Board will perform management of income and expenditure of the Central Inland Revenue Welfare Fund; formulation of policies and taking all measures to implement such policies for the investments, generation of further funds and all matters relating thereto; supervision over the Regional Inland Revenue Welfare Fund Boards; appointment of auditors for the Fund; and holding of an annual general meeting not more than six months after the end of the financial year for the purpose of scrutiny of the auditor’s report and the review of the working of the Board of Fund during the financial year.

The Central Inland Revenue Welfare Fund Board will not spend more than 60 percent of the receipts or anticipated receipts for the financial year during the year: provided that if the Board is of a unanimous view that sufficient reasons exist to incur an expenditure in excess of the above limits, it may, for the reasons to be shown in writing, authorize an expenditure in excess of these limits.

However, the expenditure will not in any case exceed 80 percent of the receipts or anticipated receipts for the financial year. Any amount that is not expended by the pool during the year shall be invested in Government securities and the profit received there from every year shall form part of the receipts of the fund. Moreover, no investment will be made in any speculative or risky transactions

The Regional Inland Revenue Welfare Fund Boards will perform management of the income and expenditure of the respective Regional Inland Revenue Welfare Fund; formulation of policies and taking all measures to implement such policies for the investments, generation of further funds and all matters relating thereto; holding of an annual general meeting not more than six months after the end of the financial year for the purpose of scrutiny of the auditor’s report and the review of the working of the Board during the financial year.

Each Regional Inland Revenue Welfare Fund Board will transfer 20 percent of its receipts for the financial year to the Central Inland Revenue Welfare Fund within six months of the close of the financial year for utilization by the Board of Fund at FBR Headquarters.

Any amount that has remained unutilized with the Income Tax Central Board, or the Central Sales Tax Common Pool Fund Board, or Central Federal Excise Common Pool Fund Board on commencement of these rules shall immediately stand transferred to the Central Inland Revenue Welfare Fund Board.

Any amount contributed, granted or allocated by the Federal Government, Federal Board of Revenue or FBR Foundation shall he transferred to the Central Inland Revenue Welfare Fund Board.

It shall be obligatory for every officer and staff member posted at the FBR Headquarters, Islamabad to contribute an amount specified towards this Fund.

Nothing contained under these rules shall bar the Central Inland Revenue Welfare Fund Board from raising money through any lawful activity, such as holding a Mela or a Bazaar, or by raising hoarding or billboard on Inland Revenue Service property, however Board of Fund will not seek contribution from any taxpayer on an expectation of gaining any undue favor in connection with the assessment and collection of any tax. Officers and officials of Inland Revenue can make voluntary contributions.

The Central Inland Revenue Welfare Fund Board may distribute the amount received from the Income Tax Central Common Pool Fund Board, or the Central Sales Tax Common Pool Fund Board, or Central Federal Excise Common Pool Fund Board or amount received from the Federal Government, Federal Board of Revenue or FBR Foundation to the Regional Inland Revenue Welfare Fund Boards, for investment or utilization by these Boards of Fund:

Provided that the amount shall be distributed among the Regional Inland Revenue Welfare Fund Boards in proportion to the strength of their staff. The maximum expenditure out of this amount by a Regional Inland Revenue Welfare Fund Board during a financial year shall not exceed 20 percent of the amount transferred.

The amounts lying with the Central Inland Revenue Welfare Fund Board and the Regional Inland Revenue Welfare Fund Boards will be utilized for reimbursement of medical charges; reimbursement of health insurance premium for the staff up to BS-16; stipend for education; marriage expenses; burial expenses; maintenance of transit accommodation and officers mess; and construction or maintenance of the premises of the local chapters of Pakistan Taxation Club subject to certain limits.

The Central Inland Revenue Welfare Fund may authorize and sanction expenditure for personal loan; renovations and repairs of Government residences; purchase and repair of vehicles for pick and drop of staff; hiring of officials for the Fund related work; expenses to hold a function and activity for common good of staff; subsidy and financial assistance to staff up to BS-16 retired from service; or any other project or activity involving common welfare of the staff.

The audit of the Central and Regional Funds shall be carried out annually by a firm of chartered accountants or a firm of cost and management accountants appointed by the Central Inland Revenue Welfare Fund Board.

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