Updated: Tuesday August 28, 2012/AthThulatha
Shawwal 11, 1433/Mangalavara
Bhadra 06, 1934, at 10:58:33 PM
The
(Act XLIII
of 2012)
C O N T E N T S
Section Heading
Chapter I
Preliminary
1. Short
title, extent and commencement.
2. Definitions.
Chapter II
3. The Authority.
4. Secretary.
5. Powers and functions of the Authority.
6. Human resource management.
7. Meetings.
8. Validity of proceedings.
9. Data bank.
10. Properties and assets to vest in the Authority.
11. Authority may impose any fee or charges.
Chapter
III
Advisory
Council
12. Advisory Council.
Chapter
IV
Administration
of Taxes
13. Registration of tax payers.
14. Assessment, collection and returns of taxes.
Chapter V
Financial
Provisions
15. Fund.
16. Budget and accounts.
17. Audit.
Chapter VI
Appeals and
References
18. Appellate
Tribunal.
19. Appeal.
20. Reference
to the High Court.
Chapter VII
Miscellaneous
21. Staff.
22. Delegation
by the Government.
23. Directions from the Government.
24. Delegation by the Authority.
25. Annual report.
26. Public servants.
27. Indemnity.
28. Representation.
29. Power to conduct surveys.
30. Assistance to the Authority.
31. Directorates.
32. Act
to override other laws.
33. Rules.
34. Regulations.
35. Removal
of difficulties.
[1][1]The
(Act XLIII
of 2012
[27 June 2012]
An Act to provide for the
establishment of
Preamble.– Whereas
it is expedient to reform and modernize the system of taxation, to provide
assistance to tax payers, to promote compliance with fiscal laws, to establish
a progressive and professionally efficient tax management organization, and to
provide for ancillary matters;
It is
enacted as follows:---
Chapter I
Preliminary
1. Short
title, extent and commencement.– (1)
This Act may be cited as the Punjab Revenue Authority Act, 2012.
(2) It
extends to whole of the
(3) It shall come into force on such date as
the Government may, by notification, specify.
2. Definitions.–
In this Act,---
(a) “Advisory Council” means the Advisory Council
of the Authority;
(b) “Appellate
Tribunal” means the Appellate Tribunal established under the Act;
(c) “Authority”
means the Punjab Revenue Authority;
(d) “Chairperson”
means the Chairperson of the Authority;
(e) “committee” means a committee of the Authority;
(f) “employee” means a person in the employment and service of
the Authority;
(g) “Federal
Board of Revenue” means the Federal Board of Revenue established under the
Federal Board of Revenue Act 2007 (IV of 2007);
(h) “fiscal
law” means the law of the Punjab relating to tax, duty or charge including
stamp duty, excise duty on alcoholic liquors, opium and other narcotics, land
revenue, sales tax on services, taxes on agricultural income, motor vehicles,
immovable property and entertainments, capital gains tax on immovable property,
capital value tax, asset tax, tax on professions, trades, callings or
employment or such other law imposing any tax, levy, duty, fee, charge or
surcharge as the Government may specify;
(i) “Government”
means Government of the
(j) “member” means any
person appointed as a member of the Authority;
(k) “person” includes,---
(i) an individual;
(ii) a company or association of persons;
(iii) the Federal Government;
(iv) a Provincial Government;
(v) a local authority or local government;
and
(vi) a foreign government, a political
subdivision of a foreign government, or an international organization;
(l) “prescribed” means prescribed by the rules or regulations;
(m) “Public
Account” means the Public Account of the Province in terms of Article 118 of
the Constitution of the
Islamic Republic of Pakistan;
(n) “Provincial
Consolidated Fund” means the Provincial Consolidated Fund in terms of Article
118 of the Constitution of
the Islamic Republic of Pakistan;
(o) “regulations” means the regulations framed under the Act; and
(p) “rules” means the rules made under the Act.
Chapter II
3. The Authority.– (1) The Government shall, by notification, establish
an Authority to be called the Punjab Revenue Authority.
(2) The Authority shall be a body corporate,
having perpetual succession and a common seal, with power to enter into
agreements, acquire, hold, manage and, subject to sub-section (3), dispose of
property and to sue and be sued in its name.
(3) The Authority shall not dispose of any
immovable property except with the prior approval of the Government and through
competitive bidding.
(4) The Authority shall consist of the
Chairperson and not less than four members to be appointed by the Government in
such manner and on such terms and conditions as may be prescribed, and until so
prescribed as may be determined by the Government.
(5) No person shall be appointed as the
Chairperson unless he possesses,---
(a) a master’s degree from a recognized University;
(b) ample knowledge of tax systems in
(c) twenty years
work experience, including five years’ experience in tax administration or
financial management.
(6) The qualifications, experience and other
requirements for appointment as Secretary or a member shall be such as may be
prescribed.
(7) The Government may designate a member as
senior member.
(8) If the office of the Chairperson is
vacant or the Chairperson is absent or is unable to perform the functions of
the Chairperson owing to any cause, the senior member shall perform the
functions of the Chairperson but, if at any time, the office of senior member
is also vacant or the senior member is absent or is unable to perform the
functions of the Chairperson owing to any cause, the Government shall make such
temporary arrangements for the performance of the duties of the Chairperson as
it may deem fit.
4. Secretary.– (1) The Chairperson, on the recommendations of the
Authority, shall appoint Secretary of the Authority on such terms and
conditions as may be prescribed, and until so prescribed as may be determined
by the Government.
(2) The Secretary shall perform such
functions as may be prescribed or as may be assigned by the Chairperson or the
Authority.
(3) In the performance of his functions, the
Secretary shall be responsible to the Chairperson.
5. Powers and functions of the Authority.– (1) The
Authority shall exercise such powers and perform such functions as are
necessary to achieve the purposes of this Act.
(2) Without prejudice to the generality of
the powers mentioned in sub-section (1), the Authority shall have powers to–
(a) administer and collect such taxes, duties and other levies
as are assigned to the Authority under a fiscal law;
(b) implement, with the approval of the Government, the tax
administration reforms;
(c) promote voluntary tax compliance;
(d) implement comprehensive policies and programmes
for education and facilitation of taxpayers, stakeholders and employees to
improve the quality of the performance of the Authority as a service oriented
entity;
(e) adopt
modern effective tax administration methods, information technology systems and
policies to consolidate assessments, improve processes, organize registration
of tax payers, widen the tax base, and make departmental remedies more
efficient including enforcement of, or reduction or remission in duty, penalty
or tax, in accordance with the relevant fiscal law;
(f) improve productivity through a comprehensive and effective
human resource strategy;
(g) identify and select a transparent manner,
qualified work force on such terms and conditions and in such manner as may be
prescribed;
(h) grant such performance based additional allowances or
incentives and rewards to the employees and members of the Authority as may be
prescribed;
(i) take
appropriate measures including internal controls to combat corruption in the
organizations under the Authority and to provide checks to ensure that the
integrity of the employees is verified periodically through applicable
procedures and the said verification shall constitute one of the criteria for
purposes of grant of incentives and consideration for promotion;
(j) direct or advise, where necessary, investigation or inquiry
into suspected duty or tax evasion and tax or commercial fraud;
(k) introduce and maintain a system of accountability of
performance, competence and conduct of the employees;
(l) implement the mandate and provisions of a fiscal law if so
authorized by such law;
(m) establish, with the approval of the Government, a foundation
for the welfare of the present and retired employees and their families, and
for creating, establishing, organizing and assisting them in the social and
cultural facilities;
(n) frame regulations, policies, programmes,
strategies in order to carry out the purposes of the Act;
(o) set up mechanism and processes for remedying the grievances and
complaints of the tax payers;
(p) develop a website and adopt, in the
prescribed manner, electronic communication in respect of all taxation matters
such as e-filing, e-payments, e-notice, e-notification, digital imaging,
protocols or agreements;
(q) practice transparency and public participation as a norm for
all its processes and policies;
(r) review the existing fiscal laws and
suggest improvements, if necessary;
(s) forma committee and assign or delegate functions to the
committee; and
(t) perform such other functions as may be prescribed or are
incidental to the above functions or assigned by the Government.
(3) Subject to the provisions of this Act
and the relevant fiscal law, the Authority may, where appropriate, issue
notifications, circulars and instructions for the enforcement of any of the
provisions of the Act or any other fiscal law administered by the Authority.
6. Human resource management.– (1) The Authority may, in respect of its
employees,---
(a) develop and implement human resource management policies;
(b) assess, identify, create, increase,
decrease or designate or re-designate posts and prepare and execute the
internal job posting regime;
(c) lay down qualifications and criteria for the
posting of employees against specialized or available posts;
(d) implement a transparent and objective evaluation process to
determine that an employee is qualified for posting against a specialized or
available post;
(e) make assessment of integrity and proficiency of the
employees for purposes of evaluation, posting, promotion, transfer or other
incidental matters;
(f) transfer, select or post any employee against any post on
the basis of transparent criteria of selection in any entity administered by
the Authority;
(g) take action, issue orders, regulations, guidelines, code of
conduct to achieve the purposes of this Act;
(h) appoint,
with or without remuneration, such advisers, commissioners, consultants,
experts, interns, liaison officers and other staff as may be prescribed;
(i) fix,
with the approval of the Government, an honorarium or remuneration for the
services rendered by advisers, consultants, experts, fellows, interns, officers
and staff of the Authority, liaison officers and other staff engaged by the
Authority; and
(j) impart the requisite training to its employees for purposes
of better tax administration.
(2) Notwithstanding anything contained in
this Act, an appointment of a person to a post in the Authority shall not
confer any right on such person to continue to serve in the said post.
7. Meetings.– (1) The
Authority shall meet at least once in a month but the Chairperson may, at any
time, call a meeting of the Authority.
(2) The Authority shall conduct its
meetings, take decisions and keep record of the proceedings of the meetings in
such manner as may be prescribed, and until so prescribed as may be determined
by the Authority.
8. Validity of proceedings.– No act, proceeding, decision or order of the
Authority or a committee of the Authority shall be invalid by reason only of
the existence of vacancy or any defect in the constitution of the Authority or
a committee.
9. Data
bank.– (1) The Authority shall create and maintain a data bank
containing information from third parties necessary to achieve the purposes of
this Act.
(2) The Authority shall use the data,
amongst other things, to increase the taxpayers’ base, ensure accuracy of
information, financial analysis and to evaluate the performance of the
employees.
(3) The Authority may share its data with,
or request for data from, the Government or any of its statutory body, law
enforcement entity or utility company, stock exchange, State Bank of Pakistan,
banks, financial institutions or other organizations including any ministry,
body or authority of the Federal Government or of any other Province.
10. Properties and assets to vest in the
Authority.– (1) All properties, assets and records transferred
to, or purchased or acquired by, the Authority and all intellectual property
rights arising from technical or professional reports, analysis, or system,
written, prepared or developed by the employees of the Authority or procured by
the Authority shall vest in the Authority and shall be the property of the
Authority.
(2) The Authority may create its own logo,
insignia, stationary, forms, returns, challans and
online communication mechanism.
11. Authority may impose any fee
or charges.– The Authority may, with the approval of the Government, levy any fee or
charges for provision of additional or enhanced facilities to the taxpayers, or
may direct reimbursement of such cost or expense as is incurred by the
Authority on that account.
Chapter III
Advisory Council
12. Advisory
Council.– (1) There shall be an Advisory Council of the
Authority consisting of the following:-
(a) Minister
for Finance of the Government;
(b) Chief
Secretary of the Government;
(c) Chairperson;
(d) Secretary
to the Government, Finance Department;
(e) Four
private members to be nominated by the Government from amongst the eminent
economists, tax experts, bankers, chartered accountants, representatives of
Chambers of Commerce and Industry or civil society organizations; and
(f) any other member co-opted by the Authority.
(2) The Advisory Council shall be an
advisory body of the Authority and shall propose to the Authority appropriate
recommendations and guidelines pertaining to policy, planning, reforms, budget
and any other matter referred to it by the Government.
(3) Minister for Finance of the Government
and, in his absence the Chief Secretary, shall be the Convener of the Advisory
Council.
(4) The Advisory Council shall perform its
functions in such manner as may be prescribed.
Chapter IV
Administration of Taxes
13. Registration of tax payers.– A person registered or to be
registered, licensed or to be licensed under the relevant fiscal law
administered by the Authority, shall be deemed to be validly registered for
purposes of this Act.
14. Assessment,
collection and returns of taxes.– (1)
Where necessary, the Government may declare separate assessment, billing and
collecting branches in the Authority for purposes of administration of the
taxes as are assigned to the Authority.
(2) Subject to the provisions of the
relevant fiscal law, the Authority shall follow such procedure and manner for
purposes of assessment, billing, collection and filing of returns of the taxes
as the Government may prescribe.
(3) The Authority shall, in the prescribed
manner, deposit all the proceeds of the taxes in the Provincial Consolidated
Fund or the Public Account.
Chapter V
Financial
Provisions
15. Fund.– (1) There shall be established a Fund to be known as
the Punjab Revenue Authority Fund which shall be administered and controlled by
the Authority.
(2) The Fund shall consist of,---
(a) budgetary releases from the Government;
(b) grants made by the Government, the Federal Government or any
other authority or agency;
(c) fee and charges
collected and profits earned by the Authority; and
(d) income from any other source.
16. Budget and accounts.– (1) The Authority, before the commencement of a financial year, prepare
a statement of the estimated receipts and expenditure of the Authority for the
financial year in the prescribed manner and submit it to the Government for
consideration and approval.
(2) The Authority shall maintain proper
accounts and other records relating to its financial affairs including its
income and expenditures and its assets and liabilities in such form and manner
as may be prescribed.
(3) As soon as may be, after the end of each
financial year, the Authority, in the manner prescribed, shall cause to be
prepared for that financial year statements of account of the Authority, which
shall include a balance-sheet and an account of income and expenditure.
(4) The Authority may open and maintain its
accounts at such scheduled banks as it may determine.
17. Audit.– (1) The Auditor General of
(2) The Government, in addition to the audit
under sub-section (1), may cause the annual accounts of the Authority audited,
in the prescribed manner, by a Chartered Accountant or a firm of Chartered
Accountants.
Chapter VI
Appeals and
References
18. Appellate
Tribunal.– (1) The Appellate Tribunal shall consist of
such number of judicial and accountant members as the Government may, from time
to time, determine.
(2) The Government shall appoint judicial
members of the Appellate Tribunal from amongst the District and Sessions Judges
in consultation with the Lahore High Court.
(3) A person may be appointed as an
accountant member of the Appellate Tribunal if he is,---
(a) a
Commissioner (Appeals) in the Authority or the Federal Board of Revenue having
at least two years’ experience in that capacity; or
(b) a
Commissioner in the Authority or the Federal Board of Revenue, other than the
Commissioner mentioned at (a), having at least three years’ experience as
Commissioner of the Authority or the Federal Board of Revenue; or
(c) an officer of Excise
and Taxation Department of the Government with at least three years’ service in
BS-20 or above; and
(d) less than fifty-seven years of age.
(4) The Government shall designate the
senior most judicial member of the Appellate Tribunal as its Chairperson.
(5) The Appellate Tribunal may exercise its
powers and discharge its functions in the prescribed manner in such Benches as
the Chairperson may constitute from amongst the members of the Appellate
Tribunal.
(6) Subject
to the provisions of sub-section (5), the Appellate Tribunal shall have the
power to regulate its own procedure, and the procedure of the Benches of the
Appellate Tribunal in all matters relating to the discharge of its functions
including the places at which the Benches shall hold their sittings.
19. Appeal.– A taxpayer or the Authority aggrieved by
any final order of the highest appellate forum in the Authority, may, within
sixty days from the date of communication of the order, prefer an appeal to the
Appellate Tribunal which shall decide the appeal in the prescribed manner in
accordance with the provisions of the relevant fiscal law.
20. Reference to the High Court.–(1) A reference to the High Court shall lie only if a question
of law is involved in a case.
(2) Any person or the Authority may, within
sixty days from the date of communication of the final order of the Appellate
Tribunal, prefer a reference in the prescribed form along with a statement of
the facts of the case and the question of law involved in the case.
(3) The High Court may dismiss a reference in limine if
it is satisfied that the reference does not contain any question of law for
determination.
(4) The reference under this section shall
be heard by a Bench of at least two Judges of the High Court and the provisions
of section 98 of the Code of
Civil Procedure 1908 (V of 1908)
shall, as far as possible, apply to such reference.
(5) The High Court shall send a copy of the judgment
under the seal of the Court to the Appellate Tribunal.
(6) Notwithstanding
that a reference has been preferred in the High Court,
the tax shall be paid in accordance with the order of the Appellate Tribunal.
(7) If the
tax liability is reduced by the High Court and the Authority decides to seek
leave to appeal to the Supreme Court, the Authority may, within thirty days of
the receipt of the judgment of the Court, apply to the High Court to postpone
the refund until the decision by the Supreme Court.
(8) Section 5 of the Limitation Act 1908 (IX of 1908) shall apply to a
reference under sub-section (1).
(9) A court fee of rupees one thousand shall
be affixed on a reference under this section except when it is filed by the
Authority.
Chapter VII
Miscellaneous
21. Staff.– (1) The Authority may employ such persons as may be
necessary for the efficient performance of its functions in such manner and on
such terms and conditions as may be prescribed.
(2) The employees of the Authority shall
hold office during the pleasure of the Authority and shall be liable to such
disciplinary action as may be prescribed.
(3) The Authority may, in the manner
prescribed, absorb in its service an employee who is on deputation with the
Authority, subject to prior approval of the Government or the employer and
consent of the employee.
(4) The terms and conditions of service of
an employee, on absorption, shall not be less favourable
than those admissible to such employee immediately before his absorption in the
service of the Authority.
22. Delegation by the Government.– (1)The
Government may delegate any of its powers to the Authority on such terms and
conditions as the Government may determine.
(2) The Government may, by notification,
assign or delegate to the Authority any powers or functions under any fiscal
law.
23. Directions from the
Government.– The Government may, from time to time, give such general or specific
directions to the Authority as may be necessary for the efficient performance
of its functions and achieving the objectives of the Act and the Authority
shall implement such directions.
24. Delegation by the Authority.– The
Authority may, with the concurrence of the Government, delegate any of its functions
and powers to any department, agency or employee of the Government.
25. Annual report.– (1) The Authority shall, within three months of the
close of a financial year, submit to the Government an annual report.
(2) The report shall consist of,---
(a) the statement of accounts;
(b) a comprehensive
statement of the work, activities and performance of the Authority during the
preceding financial year; and
(c) such other matters as may be prescribed and as the Authority
may consider appropriate.
(3) The Government shall, within two months
of receiving the report from the Authority, shall give notice for laying the
report in the Provincial Assembly of the
26. Public servants.– The Chairperson, Secretary,
members, officers, employees and other persons authorized to perform or
exercise any function or power under this Act or render services to the
Authority as agents, advisors or consultants shall be deemed to be public
servants within the meanings of section 21 of the Pakistan Penal Code 1860 (XLV of
1860).
27. Indemnity.– (1) No prosecution, suit or other legal proceeding shall lie against
the Authority, Appellate Tribunal, Chairperson, members, officers and other
employees of the Authority or of the Appellate Tribunal for anything done in
good faith for carrying out the purposes of the Act, rules or regulations.
(2) No Government department or agency shall
initiate any enquiry or investigation against the official conduct of any of
the employees of the Authority without prior approval of the Authority.
28. Representation.– (1) Any person aggrieved by any action or
decision taken for the enforcement of the relevant fiscal law or by any act of
maladministration, corruption and misconduct by any employee of the Authority
or by any unnecessary delay or hardship caused due to any administrative
process may file a representation to the Chairperson.
(2) The Chairperson or any other officer
designated by the Chairperson shall, after affording an opportunity of hearing
to both the parties, make such order as may be necessary and inform the
applicant accordingly.
(3) Pending final action or order on the
representation, the Chairperson may stay further proceedings in the matter at
any subordinate level.
29. Power to
conduct surveys.– The Authority may conduct or cause to be
conducted such surveys as it may deem necessary to broaden the tax-base and to
widen tax coverage under any fiscal law.
30. Assistance
to the Authority.– All departments, agencies, organizations,
entities, formations and bodies of the Government shall, on request, be under
obligation to extend necessary and due cooperation and assistance to the
Authority in the performance of its functions under this Act, rules or
regulations.
31. Directorates.– (1) The Authority may, with the approval of the
Government, establish such directorates for such tax-related specialized
functions like intelligence and investigation, internal audit and inspection or
training and research as may be necessary.
(2) The
Authority shall assign and regulate the powers and functions of the said
directorates in such manner as it may deem proper.
32. Act to override other laws.– The provisions of this Act shall have effect
notwithstanding anything to the contrary contained in any other law.
33. Rules.– The
Government may, by notification, make rules to carry out the purposes of this
Act.
34. Regulations.–(1) Subject to this Act and the rules, the Authority
may frame regulations for giving effect to the provisions of the Act.
(2) Without prejudice to the foregoing
powers, such regulations may provide for appointment of its officers, staff,
employees and other persons, terms and conditions of their service and
performance of functions by the Authority.
35. Removal of difficulties.- If any difficulty arises in giving effect to or
applying the provisions of this Act, rules or regulations, the Government may
make such order, not inconsistent with the Act or the rules and regulations, as
may be necessary to remove the difficulty.
[1][1]This Act was passed by the
Punjab Assembly on 21 June 2012; assented to by the Governor of the
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