Large taxpayers

10 December 2014

 

Case Selection Criteria for Large Taxpayers Office (LTO)

Objective:

This document explains the background of  case selection criteria and suggests principles for  case allocation criteria. The document clarifies and where necessary simplifies case selection criteria previously defined in 2007  so that easier and effective enforcement could be achieved.

Background:   

The ARD is structured on a functional basis within three market segments, namely large, medium and small taxpayers.

This structure has been adopted to:

  • Maximize the efficiency and effectiveness, and
  •   Best manage the risks associated with the different characteristics, compliance behaviors and risks to the revenue each segment presents

In 33 provinces outside of Kabul, revenue collection falls under the control of Mustaufiats, and Mustaufiats do not report to Deputy Minister, customs and Revenue. Rather, the Mustaufiats report directly to Deputy Minister, Administration. This anomaly means that the ARD has little control over the way in which  revenue collection is managed in provinces and is reliant on the cooperation of Mustaufiats. An exercise is underway to establish through the Tashkeel process a national revenue authority with a single channel of reporting to ARD Director General. In anticipation of this change,  the case selection criteria should also apply to provincial LTOs, MTOs and STOs.

Principles for  taxpayer selection criteria   

Taxpayer allocation to  each tax center should:

  • Be supported by clear and simple criteria
  •   Ensure a balance between taxpayer numbers with staffing levels, and  Keep up with changes in economic situation and  taxpayer population.

 Case allocation criteria 

The case allocation criteria for  LTO (Kabul and Provinces) are as follow: 

  • National and international airlines 
  • National and international telecommunication companies 
  • Banks, insurance and financial institutions
  • Importers/traders  with  annual turnover exceeding 1 billion Afn
  • Mining and Extraction companies (excluding mining and extraction advisors, support industries and other related small businesses
  • State owned enterprises 
  • Universities and Higher Educations Institutions. 
  • International Consultancy companies
  • Media (Mobi Group, Shamshad, Ariana and 1TV)

Case allocation criteria for LTO  taxpayers  in provincesNote: All the companies  having AISA license and their annual turnover exceeds 300 million Afn are required to be registered with LTO.  

  • Importers/traders companies with annual turnover exceeding 500 million Afn.
  • The companies who have AISA license and their annual turnover exceeds 100 Million Afn. 
  • Banks, Insurance and Financial Institutions. 
  • Universities and higher education institutions established in provinces  


Note: If the annual turnover of AISA registered companies in provinces exceeds 100 million Afn, they should be transferred to LTO.  

Authorities

ARD Director General may, for the purpose of addressing some cases in a better way,  make decision to transfer a case from one Directorate to another.

Validity of  Selection Criteria: 

This document is valid for 3 years and after 3 years, the criteria provided in this document shall be revised.

Approved by:

Najeeb Ahmadzai                                                                                Gul Maqsood Sabit

ARD acting DG                                                                                    DM, Customs and Revenue

Date/signature                                                                                    Date/Signature