FBR indigenously develops sales tax IT system

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The Federal Board of Revenue (FBR) indigenously developed sales tax IT system ie Computerised Risk-Based Evaluation of Sales Tax (Crest) will process all sales tax refund claims on the basis of data captured in sales tax returns and no separate CD would be required from registered person for processing of claim.

Sources told Business Recorder here on Sunday that the Crest has given new dimension to the whole scheme of processing of claims by checking and verification of supply chain to avert tax frauds with facilitation to the genuine registered units. The FBR has decided to process the sales tax refund claims through the data captured in the returns and for facilitation of the taxpayers no separate data will have to be submitted for refund claims.

Expressing full confidence in the new IT system, the FBR has been further decided that the centralised IT system shall process all types of sales tax refund claims which previously were processing only refund claims of exports in five zero-rated sectors. It has been further decided that the system shall conduct electronically audit of all refund claims already sanctioned and paid. This will save the refund claimant from unnecessary hassle of post-refund audit but will also plug the any chances of collusion between unscrupulous claimants and corrupt functionaries of the tax department. It has been also decided that after effective publicity campaign all those taxpayers status would be made non-operative who failed to respond to electronically transmitted discrepancy reports of the Crest.

Sources said that now the separate application for refund claim will not have to be submitted which previously done was done on CD by registered persons. After the induction of this IT system no individual alerts would be made as the system has in build capacity to block any fictitious refund claims. This will end the discretionary powers available with the FBR with regarding to blocking of refund claims. There will not be any hypothetical situation where there would be need to issue alerts as system operates around dynamics chains of in build alerts and checks. In one of such presentations, it was shown that a refund claimant filed claim for only Rs 1.7 million, the system clears only 60 percent of refund claim after evaluating 140 suppliers who were directly or indirectly transacted with the four main suppliers of the refund claimant. The system checks the nature of the business of the supplier, goods being exported and their point of destination.

After analysing/reviewing work of new home-grown IT system, the senior IR management decided to deploy the system at all the Regional Tax Offices and Large Taxpayer Units. While checking the stress management the third party IT experts expressed their satisfaction over the performance of the system. However, experts asked for creating a data warehouse where the said warehouse should check the repository of verified information of customs goods declaration and the all available electronically received information of income tax and sales tax, they added.



courtesy: BR


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