POWERS OF COMISSIONER INLAND REVENUE - Sectionwise References

DEFINITION

Commissioner means a person appointed to be a Commissioner Inland Revenue (CIR) under section 208 of the Income Tax Ordinance,2001. It also includes any other authority vested with all or any of the powers and functions of the Commissioner. [Section 2(13)] 

APPOINTMENT

CIR is appointed by Board and is subordinate to Board and Chief Commissioner under whose jurisdiction he works. 

SUBORDINATES

The following authorities are subordinate to the CIR. [207]

1. Additional Commissioners
2. Deputy Commissioners
3. Assistant Commissioners
4. Inland Revenue Officers
5. Inland Revenue Audit Officers
6. Superintendents, and
7. Auditors

FUNCTIONS AND POWERS OF CIR

CIR Is head of a Revenue Zone. He performs all such functions as are required by any provision of the Income Tax Ordinance and as directed by Board. He oversees the performance and functions of all subordinate authorities working within his jurisdiction.

Under the Income Tax Ordinance, 2001, the CIR is the most powerful authority. Almost all functions concerning the administration of the Ordinance are vested in him. His powers are manifold. CIR enjoys the following powers: 

1) Allow an employee to pay tax on his retirement payments and golden handshake payments as per normal procedure or pay tax on the basis of average rate of tax based on the three preceding tax years. [Section 12(6)] 

2) Allow an employee to pay tax on salary received in arrears in the tax year in which services were rendered. [Section 12(7)] 

3) Extend the date of selection out of the options available to an employee. [Section 12(8)] 

4) Allow a person to change his method of accounting. [Section 32(4)]

5) Permit the change of stock valuation method. [Section 35(6)] 

6) Allow a person to use special tax year. [Section 74(3)]

7) Allow a person to use normal tax year instead of special tax year. [Section 74(7)]

8) Impose conditions while permitting a person to use a special tax year or normal tax year. [Section 74(5)]

9) Withdraw the permission granted to a person to use a specific tax year. [Section 74(7)]

10) Distribute, apportion or allocate incomes, deductions or tax credits in respect of any transaction between associates. [Section 108(1)] 

11) Charge to tax the value of any unexplained income or asset and determine the value if it is declared less than the fair market value. [Section 111(3)]

12) Require a person or his representative to furnish the return of income. [Section 111(3)&(4)] 

13) Require a person to furnish his wealth statement. [Section 116(1)] 

14) Require a person to furnish the return if the business is discontinued and the person has not furnished his return of income. [Section 117(3)]

15) Extent the time for filing a return. [Section 119]

16) Make-an assessment order if the taxpayer has not furnished his return of income. [Section 121]

17) Make an amended assessment order. [Section 122]

18) Make a provisional assessment order. [Section 123]

19) Make an assessment order to give effect to an order of an appellate authority or a court. [Section 124]

20) Make an assessment in the light of a point of law decided by the High Court or the Appellate Tribunal. [Section 124A(1)]

21) Modify the original orders if the orders of the Tribunal or the High Court are changed at the higher appellate forum. [Section 124A(2)]

22) Take all necessary and appropriate actions for recovery of tax from a taxpayer. [Section 138]

23) Recover the tax from a person who holds money on behalf of the taxpayer. [Section 140]

24) Notify and recover the tax from the liquidator of a company which has gone into liquidation.[Section 141]

25) Allow a person to make payment without deducting tax at source. [Section 153(4)]

26) Issue an exemption certificate. [Section 159]

27) Extend the period for tiling of different statements. [Section 165]

28) Adjust the amount of excess tax paid by a taxpayer and if there is any balance after the adjustment of any other tax liability refund the same to the taxpayer. [Section 170]

29) Authorize a person to maintain the prescribed records, books, accounts, etc. [Section 174] 

30) Enter and search premises. [Section 175]

31) Issue notice in order to obtain information or evidence. [Section 176]

32) Select any person for audit. [Section 177]

33) Approve a person as translator in case the accounts, etc., are kept by a taxpayer in a language other than Urdu or English.

34) Impose penalties for different defaults. [Part-X of Chapter-X]

35) Initiate prosecution for offences committed by a taxpayer. [Part-XI of Chapter-X]

36) Impose default surcharge if the taxpayer fails to pay the tax by due date. [Section 205]

37) Appoint any of his subordinate authority with the approval of Board. [Section 208(2)] 

38) Delegate any of his powers to any Officer of Inland Revenue. [Section 210]

39) Rectify any mistake in his order, apparent from the record. [Section 221]

40) Appoint an expert for the purposes of valuation, audit, etc. [Section 222]