ISLAMABAD, Aug 29: The government on Friday gave powers to the commissioners of income tax to seek information from big retailers and wholesalers about their real transactions to unearth the possible tax-evasion.

The new provision in the law would help income tax department document economy as sale transactions of big retailers and wholesalers may be audited for taxation of their income.

An income tax notification SRO895 of 2008 has been issued here to amend the income tax rules 2002 for carrying out powers to audit the transactions of big taxpayers.

Analysts said this provision would not only help assess the real tax liability of a person but would also reduce discretion of the department which may be used for assessing such sale transactions by bald estimation.

The SRO is being issued consequent upon introduction of a new provision in the Income Tax Ordinance, 2001, through the Finance Act, 2008, which has given powers to commissioner to require any person to install and use an ETR of such type and description as may be prescribed for the purpose of storing and accessing information regarding any transaction that has a bearing on the tax liability of such a person.

For the implementation of the decision, new rules were incorporated in the income tax rules 2002 by the new notification prescribing the modus operandi of installation, use, identification number, maintenance, and inspection by the tax authority of the Electronic Tax Register (ETR).

Under the new rules, a person required to use an electronic tax register shall install the ETR within seven days of its authentication by commissioner holding jurisdiction over such a case and obtain a register identification number (RIN) for permanent affixture on the ETR; to use the ETR to record only his own sales and ensure that each sale is made through it and print the receipt of each sale containing the information in accordance with sub-rules (3) and (4) of rule 29 and rule 30, and to deliver the original receipt to the purchaser;

While in case of non-availability for use of the ETR, the sales may be recorded with the use of a substitute ETR, duly authenticated by the commissioner; prepare a daily and a monthly accounting report containing the information as prescribed in Chapter-VII of these rules.

Ensure that the ETR operates correctly with particular regard to correct programming of the names of goods and services and correct allocation of their tax rates; promptly report any malfunctioning of the ETR to the person responsible for its servicing.