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Category: Taxation

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  • FBR’s online return filing portal restores after disruption

    FBR’s online return filing portal restores after disruption

    KARACHI: The online return filing portal of Federal Board of Revenue (FBR) restored after witnessing disruption on Monday.

    The IRIS – the online web portal of the FBR for income tax return filing – is working normally by Monday evening after taxpayers complained that the portal was not responding during first half.

    The portal was experiencing outage till noon on Monday.

    Earlier, in the day a large number of taxpayers unable to file their annual income tax returns on Monday as the official web portal of the FBR was not responding.

    The official website of the FBR https://www.fbr.gov.pk was responding very slowly. Further, the IRIS portal – the return filing portal – is showing different massage – including internal server errors.

    Tax practitioners said that last night the portal was responding well and they had filed returns of their clients. However, from Monday morning till noon the IRIS portal https://iris.fbr.gov.pk/infosys/public/txplogin.xhtml was not responding. However, in some cases it opens but with slow response.

  • FBR’s return filing portal not responding

    FBR’s return filing portal not responding

    KARACHI: A large number of taxpayers unable to file their annual income tax returns on Monday as the official web portal of the Federal Board of Revenue (FBR) is not responding.

    The official website of the FBR https://www.fbr.gov.pk is responding very slowly. Further, the IRIS portal – the return filing portal – is showing different massage – including internal server errors.

    Tax practitioners said that last night the portal was responding well and they had filed returns of their clients. However, from Monday morning till filing of this news item the IRIS portal https://iris.fbr.gov.pk/infosys/public/txplogin.xhtml was not responding. However, in some cases it opens but with slow response.

  • Return filing date extended up to December 24

    Return filing date extended up to December 24

    ISLAMABAD: Federal Board of Revenue (FBR) has granted date extension up to December 24, 2020 for filing annual income tax return to those taxpayers who submitted applications under Section 119 of Income Tax Ordinance, 2001.

    (more…)
  • MCC Islamabad announces auction of imported vehicles on Dec 16

    MCC Islamabad announces auction of imported vehicles on Dec 16

    ISLAMABAD: Model Customs Collectorate (MCC) Islamabad announced auction of confiscated vehicles and vehicles of PM’s House to be held on December 16, 2020 at State Warehouse of the collectorate.

    Following confiscated vehicles to be presented for the auction:

    01. Ambulance, Model 2004, Reg. No. P-137DJW, Chassis No. VF1FB30AH14443523

    02. Nissan X-Trail Comfort, Model 2004, Reg. No. AD-22-37, Chassis No. JNITENT30Z0005883

    03. Toyota Hilux Double Cabin, Model 2001, Reg. No. X-68-3207, Chassis No. JTFDE626-X00073262

    04. Toyota Hilux, Model 1998, Reg. No. X-68-3053, Chassis No. LN166-0010333

    05. Toyota Hilux Pickup, Model 1999, Reg. No. X-68-3046, Chassis No. LN166-0025730

    06. Toyota Land Cruiser, Model 2001, Reg. No. X-68-3211, Chassis No. JTEBE91J-600013045

    07. Toyota Hilux, Model 1999, Reg. No. X-68-3045, Chassis No. LN166-0025725

    08. Toyota Land Cruiser Station Wagon, Model 1998, Reg. No. X-68-3051, Chassis No. JT711PJA507008050

    09. Toyota Crown Car, Model 2014, Reg. No. AGA-992, Chassis No. AWS210-6080692

    10. Toyota Land Cruiser Prado, Model 2005, Reg. No. LEF-07-7667, Chassis No. VZJ120-0010933

    11. Toyota Vitz Car, Model 2010, Reg. No. ZT-982-ICT, Chassis No. SCP90-5176119

    12. Toyota Mark-X, Model 2006, Reg. No. BS-990, Chassis No. GRX120-0065268

    13. Toyota Mark-X, Model 2006, Reg. No. CJ-466, Chassis No. GRX120-0054307

    14. Toyota Axio Car, Model 2007, Reg. No. AYN-376, Chassis No. ZRE142-6009719

    15. Toyota Mark-X, Model 2005, Reg. No. ARM-777, Chassis No. GRX120-0032030

    16. Toyota Prado TZ, Model 2003, Reg. No. ADL-364, Chassis No. VZJ121-0005538

    17. Toyota Land Cruiser, Model 2003, Reg. No. SY-136, Chassis No. VZJ121-0006183

    18. Toyota Hilux, Model 1999, Reg. No. AJKE-3, Chassis No. LN167-0017987

    19. Toyota Premio Car, Model 2007, Reg. No. AYQ-866, Chassis No. ZRT260-3012620

    20. Toyota Corona Car, Model 1996, Reg. No. QL-909, Chassis No. AT211-0003341

    21. Toyota Prado (TX), Model 2003, Reg. No. BD-2464, Chassis No. VZJ120-0003813

    22. Toyota Hilux Surf, Model 2005, Reg. No. BD-5379, Chassis No. VZN215-0007535

    23. Toyota Vitz Car, Model 2004, Reg. No. LE-20-320, Chassis No. SCP13-0041072

    24. Honda Civic Car, Model 2006, Reg. No. SV-002, Chassis No. FD3-1003719

    25. Toyota Corolla Car, Model 2004, Reg. No. BS-334, Chassis No. NZE121-3349196

    26. Toyota Suceed Car, Model 2005, Reg. No. WD-195, Chassis No. NCP51-0088584

    27. Toyota Vitz Car, Model 2001, Reg. No. ASF-433, Chassis No. NCP10-0143239

    28. Toyota Land Criuser, Model 1999, Reg. No. UN-68-652, Chassis No. JT711PJA507515993

    29. Nissan Double Cabin, Model 2001, Reg. No. X-68-1359, Chassis No. JN1CJUD22Z0023936

    30. Nissan Double Cabin, Model 2001, Reg. No. X-68-1366, Chassis No. JN1CJUD22Z0023946

    31. Toyota Hilux Double Cabin, Model 2001, Reg. No. X-68-1366, Chassis No. JTFDE626X00106955

    32. Toyota Hilux Double Cabin, Model 2004, Reg. No. X-68-3408, Chassis No. JTFDE626200118937

    33. Station Wagon, Model 1998, Reg. No. UN-68-596, Chassis No. JT711PJA507002312

    34. Station Wagon, Model 1999, Reg. No. UN-68-79, Chassis No. JT711PJA507009432

    35. Toyota Hilux Double Cabin, Model 2004, Reg. No. X-68-3405, Chassis No. JTFDE626100119464

    36. Toyota Hilux Double Cabin, Model 1999, Reg. No. X-68-3031, Chassis No. LN1660025751

    37. Toyota Hilux Double Cabin, Model 1999, Reg. No. X-68-3034, Chassis No. LN1660025766

    38. Nissan Pickup Double Cabin, Model 2006, Reg. No. X-68-3675, Chassis No. JN1CJUD22Z0079080

    39. Nissan Pickup Double Cabin, Model 2006, Reg. No. X-68-3685, Chassis No. JN1CJUD22Z0079243

    40. Toyota Pickup Double Cabin, Model 2005, Reg. No. X-68-3512, Chassis No. JTFDE626300149923

    LIST OF PM’S HOUSE VEHICLES FOR AUCTION HELD ON December 16, 2020

    1. BMW Car 760 U, Model 2014, Reg. No. -, Chassis No. CH-WBAHP42000DY992255

    2. BMW Car 760 U, Model 2014, Reg. No. -, Chassis No. CH-WBAHP42020DY99226

    3. Toyota Land Cruiser Jeep (Protected), Model 2014, Reg. No. Un-registered, Chassis No. URJ2024093203

    4. Toyota Land Cruiser, Model 2008, Reg. No. CD-94-02, Chassis No. JTECB01J301032994

    5. Toyota Land Cruiser, Model 2008, Reg. No. CD-94-03, Chassis No. JTEEV73J400002043

    6. Mercedes Benz Car (Protected), Model 2005, Reg. No. LEK-9939 (un-registered), Chassis No. WDB-2201752A473693

    7. Mercedes Benz Car (Protected), Model 2005, Reg. No. GD-346, Chassis No. WDB-2201762A457073

    8. Mercedes Benz Car (Protected), Model 2005, Reg. No. IDJ-6984 (unregistered), Chassis No. WDB-2201752A476036

    9. Mercedes Benz Car (Protected), Model 2005, Reg. No. IDF-9084 (un-registered), Chassis No. WDB-2201752A475123

    10. Stretched Limousine Car (Protected), Model 2005, Reg. No. GF-037, Chassis No. WDB-2201752A457643

    11. Toyota Lexus Jeep (Protected), Model 2005, Reg. No. Un-registered, Chassis No. JTJHT00W633531475

    12. Mercedes Benz Car (Protected), Model 2005, Reg. No. GD-341, Chassis No. WDB-2201762A457435

    13. BMW 760LI, Model 2014, Protected, Reg. No. Un-registered, Chassis No. WBAPH42070DY99223

    14. Mitsubishi Lancer S/Saloon, Model 1994, Reg. No. LOY-9760, Chassis No. CSNCBIRU00812

  • Tax Year 2020: return may be filed on payment of penalty

    Tax Year 2020: return may be filed on payment of penalty

    ISLAMABAD: A return of income and a wealth statement can be filed now after payment of fine and penalty as prescribed in the statute.

    The deadline to file income tax return for tax year 2020 was December 08, 2020. The FBR has not extended the date for filing the return of income and wealth statement despite demands from various quarters while pointing out various reasons.

    A large number of individuals and other classes of taxpayers has failed to file their returns by due date. The filing of income tax return is mandatory on classes of persons as defined under Section 114 of the Income Tax Ordinance, 2001.

    “Section 114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–

    (a) every company;

    (ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year;or

    (ac) any non-profit organization as defined in clause (36) of section 2;

    (ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;

    (ae) every person whose income for the year is subject to final taxation under any provision of this Ordinance;

    (b) any person not covered by clause (a), (ab), (ac) or (ad) who,—

    (i) has been charged to tax in respect of any of the two preceding tax years;

    (ii) claims a loss carried forward under this Ordinance for a tax year;

    (iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    (iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

    (v) owns a flat having covered area of two thousand square feet or more located in a rating area;

    (vi) owns a motor vehicle having engine capacity above 1000 CC;

    (vii) has obtained National Tax Number; or

    (viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;

    (ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan

    or Institute of Cost and Management Accountants of Pakistan ; or

    (x) is a resident person being an individual required to file foreign income and assets statement under section 116A.

    (1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.”

    The mentioned above classes of taxpayers except for companies are required to file annual return by September 30 and the last date for companies is December 31.

    The individuals or companies required to file return by September 30, the date was extended up to December 08, 2020 for tax year 2020.

    In case such persons have failed to file their return they now have to pay late filing surcharge as prescribed under Section 182 of the Income Tax Ordinance, 2001.

    Under Section 182:

    Where any person fails to furnish a return of income as required under section 114 within the due date.

    Such person shall pay a penalty equal to 0.1% of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than forty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of forty thousand rupees:

    Provided that If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees, the minimum amount of penalty shall be five thousand Rupees.

    Where any person fails to furnish wealth statement or wealth reconciliation statement then such person shall pay a penalty of 0.1% of the taxable income per week or Rs.100,000 whichever is higher.

    The late filers will also require to pay a fee for appearance in Active Taxpayers List (ATL) for tax year 2020, which will be issued on March 01, 2021.

    Section 182A. Return not filed within due date.—(1) Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—

    (a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date:

    Provided that without prejudice to any other liability under this Ordinance, the person shall be included in the active taxpayer ‘ list on filing return after the due date, if the person pays surcharge at Rupees-

    (i) twenty thousand in case of a company;

    (ii) ten thousand in case of an association of persons;

    (iii) one thousand in case of an individual.

    Persons fail to comply with filing requirement can face harsh action including imprisonment.

    Section 191. Prosecution for non-compliance with certain statutory obligations. —(1) Any person who, without reasonable excuse, fails to —

    (a) comply with a notice under sub-section (3)and sub-section (4) of section 114 or sub-section (1) of section 116; shall commit an offence punishable on conviction with a fine or imprisonment for a term not exceeding one year, or both.

    (2) If a person convicted of an offence under clause (a) of sub-section (1) fails, without reasonable excuse, to furnish the return of income or wealth statement to which the offence relates within the period specified by the Court, the person shall commit a further offence punishable on conviction with a fine not exceeding fifty thousand rupees or imprisonment for a term not exceeding two years, or both.

    Section 192: Prosecution for false statement in verification. — Any person who makes a statement in any verification in any return or other document furnished under this Ordinance which is false and which the person knows or believes to be false, or does not believe to be true, the person shall commit an offence punishable on conviction with a fine upto hundred thousand rupees or imprisonment for a term not exceeding three years, or both.

  • Annual tax return filing by due date falls 29 percent

    Annual tax return filing by due date falls 29 percent

    ISLAMABAD: Filing of annual income tax returns fell by 29 percent for tax year 2020 by due date as compared with number of return filed by due date for tax year 2019.

    The FBR on Wednesday said that it had received around 1.8 million income tax returns for tax year 2020 by the due date i.e. December 08, 2020, which was extended from September 30, 2020. Since the FBR has refused to further extend the date so December 08, 2020 has been taken as the closing date for filing income tax returns for tax year 2020 without fine and penalty.

    The FBR received 2.53 million returns by due date i.e. February 28, 2020, which was extended from September 30, 2019 to October 31, 2019, then November 30, 2019, then December 16, 2019, then December 31, 2019, then January 31, 2020 and final extension granted up to February 28, 2020.

    The number of 2.53 million returns has been shown on the Active Taxpayers List (ATL) for tax year 2019 issued on March 01, 2020.

    Around 2.98 million returns for tax year 2019 have been filed till December 06, 2020 as shown in the updated weekly ATL issued on December 07, 2020.

    The latest number of returns filed for tax year 2020 has shown that it was around 39.6 percent or 1.18 million returns short when compared with latest ATL for tax year 2019.

    On the other hand the FBR on Wednesday said that it had received 1.8 million tax returns for tax year 2020 by the last date i.e. December 08, 2020 as compared with 1.73 million returns received on the same date last year, showing 4 percent growth. However, the FBR said that around 300,000 taxpayers had submitted applications for date extension by the due date. This number will also add to the total number of returns filed for tax year 2020.

    It is worth mentioning that the due date for filing income tax returns for tax year 2019 was extended up to February 28, 2020.

    Further, since the launch of ATL on March 01, 2020 or the due date of February 28, 2020 for tax year 2019 the FBR received another 450,000 returns for the same year up to December 06, 2020.

    The FBR through its press release said that its decision of not extending the date beyond December 08, 2020 was right. The decision for not extending the last date was taken to ensure discipline in return filing by due date.

    However, collection of tax with return has shown significant increase. The FBR said that collection with return increased to Rs22 billion by the due date i.e. December 08, 2020, was 63 percent higher when compared with Rs13.5 billion by the same date of the last fiscal year.

  • Electronic tax appeal filing made mandatory from January 01

    Electronic tax appeal filing made mandatory from January 01

    The Federal Board of Revenue (FBR) has made the filing of tax appeals mandatory through electronic means, effective from January 1, 2021. This shift to electronic filing aims to streamline the process and reduce the administrative burden on taxpayers and tax authorities alike.

    (more…)
  • FBR finalizes return form for small manufacturers after filing expiry date

    FBR finalizes return form for small manufacturers after filing expiry date

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued a simplified single-page income tax return form for small manufacturers a day after when the last date for filing income tax return was expired.

    The FBR issued SRO 1316(I)/2020 dated December 09, 2020 to notify the simplified income tax return form for individuals and Association of Persons (AOPs) having annual turnover less than Rs50 million.

    Previously, the FBR issued the draft of this form on November 26, 2020 through SRO 1261(I)/2020 for seeking feedback from stakeholders.

    The FBR issued the finalized return form for the small manufacturers for tax year 2020. Interestingly, the date for tax year 2020 has been expired on December 08, 2020 except for the corporate units which have due date for return filing till December 31, 2020.

    So far the date for return filing was not further extended beyond December 08, 2020. But it is strong believe that the date may be extended to allow small manufacturers to file return under the newly notified return form.

    Tax experts said that the FBR may not allow date extension for small manufacturers without extending the date for all taxpayers who have last return filing date on September 30 and extended up to December 08, 2020.

    They said that the FBR had allowed general extension in date for filing tax return at the time of tax amnesty in the past.

    The simplified return form of income has been issued for small scale manufacturers having turnover less than Rs50 million. A single page draft wealth statement form is also issued along with the draft return of income.

    In the draft return form, the manufacturers would be required to provide limited information about their earnings and expenditures during a year.

    The details, as per draft return of income, to be provided by the manufacturers are included: gross sale excluding sales tax and federal excise duty; cost of sales; opening stock; purchases (domestic/imports); closing stock; other direct expenses; gross profit; profit and loss expenses; total income; tax chargeable; tax payable; tax already paid through utility bills; net tax payable/refund etc.

    Similarly, the taxpayer shall require to provide details, as per draft wealth statement form, are included: immovable assets; manufacturing unit; moveable assets; business capital; investment/advance; cash in hand/bank; loan/liabilities; net assets; reconciliation of net assets; net assets current year; net assets previous year; increase/decrease in net assets; income as per return; other inflows (gift, loan, remittances, etc.); outflows (gift, loan etc.); and personal expenses.

  • Date for filing income tax returns may be extended

    Date for filing income tax returns may be extended

    ISLAMABAD: The government may announce an extension in last date for filing return of income and wealth statement for tax year 2020, sources said.

    Today i.e. Tuesday December 08, 2020 is the last date for filing income tax returns for tax year 2020. As per Income Tax Ordinance, 2001 the last date for filing tax return is September 30. However, this year the income tax return form was finalized on September 08, 2020 and as per law taxpayers should be provided statutory time limit of 90 days. Therefore, the Federal Board of Revenue (FBR) on the demand of tax bars and other stakeholders, extended the date by 90 days in one go.

    This 90-day period is expiring today and the FBR has made it clear that it will not further extend the date as statutory time limit had already been granted.

    Tax bars and business community are continuously pressing the tax authorities to extend the date as online portal IRIS was making miscalculation.

    The sources in FBR said it was agreed at the Board level that the deadline would not be extended further in order to stop the tradition of repeated extension and to ensure compliance by due date.

    However, they said that the stakeholders including business community had approached the Prime Minister through the advisor on finance to intervene and allow a reasonable time for filing the annual return.

    A large number of returns have already been filed on the FBR portal, especially the salaried persons conveniently filed their returns through wizard based application. To some estimates around half of the returns filers, who filed their returns for tax year 2020, has made compliance by evening of Monday December 07, 2020.

    Therefore, to accommodate a number of around 1.5 million on the last date is impossible. The FBR issued instructions to the field offices to facilitate the taxpayers seeking date extension through commissioner approval. Further, the FBR also allowed extension to many taxpayers through one application.

    Tax experts said that the date extension through commissioner approval was already available in the Income Tax Ordinance, 2001 and by this way this issue may not be resolved and there is need to allow general relaxation in timing.

    One of the major issues creating hurdles is significant increase in coronavirus cases. Due to resurgence of COVID the government and private sector have already slashed the work force to the half. In this scenario the return filing process through tax consultants/practitioners and third party filing may be affected.

    Pakistan Tax Bar Association (PTBA) in its letter on December 02, 2020 urged the tax authorities to extend the last date for filing income tax returns up to January 31, 2020 after considering the significant rise in coronavirus cases in the country.

    Many other issued highlighted by taxpayers and other stakeholders including calculation errors on the IRIS portal. The FBR sources said that these issues were discussed and most of those were resolved.

    The sources said that extension in date may be announced later today evening.

  • FBR decides releasing missing amounts of sales tax refunds

    FBR decides releasing missing amounts of sales tax refunds

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday decided to release missing amounts of sales tax refunds that were stuck up due to design flaws in the Fully Automated Sales Tax e-Refunds (FASTER) System.

    In this regard the FBR issued Sales Tax Circular No. 03 of 2020 to prescribe standard procedure for sanctioning of missing amounts stuck in FASTER system due to system glitches.

    The FBR said that in the wake of rollback of zero-rating extended through SRO 1125 of 2011 issued under Section 3(2)(b) and (6); 8(1)(b); and 71 of the Sales Tax Act, 1990 with effect from January 01, 2012, the FASTER system was introduced to process and sanction exporters’ refunds expeditiously.

    Although, FASTER was rolled out inside the very first quarter of tax year 2020, yet it continued to malfunction on multiple counts producing suboptimal outcomes, the FBR added.

    “One evidence of FASTER’s malfunctioning was that the system would simply miss out on sales tax credits of various taxpayers stalling processing of their refund claims,” the FBR said, adding that this system glitches created problems for exporting taxpayers in terms of uncertainty and stuck-up liquidity, and for the tax administration in terms of credibility deficit.

    The FBR said that the matter was analyzed threadbare at the head office, and found out that the problem of missing amounts cropped up due to the very designing of the FASTER module plausibly on three counts, namely:

    (i) FASTER was programmed to pick the least of the three opening balances of carry forward of previous month from (a) sales tax return; (b) Annex-H; and (c) the e-RPO generated;

    (ii) FASTER module’s non-synchronization with STRIVE i.e. Serial 7a and 7b of the Sales Tax Return; and

    (iii) Misapplication of section 8b to certain exporters in FASTER module.

    “These design flaws resulted in wide-going anxiety amongst the exporters’ community as large number of missing amounts claimed by them was not being reflected on their e-RPO after processing by the system,” the FBR said, adding that the matter having two dimensions, that is, improving the system design for future glitch –free processing of refund claims in FASTER, and devising a mechanism to deal with the past missing amount cases expeditiously and judiciously, has been resolved as follows:

    (i) Future Processing Module

    The problem of opening balance has been overcome by de-linking the opening balance of Sales Tax Return and Annex – H effectively, and linking it to the previous e-RPO alone. Going forward, this improvement in the FASTER module will not only solve the issue of missing amounts arising due to opening balances but also the issue of non-synchronizing of FASTER system with the Sales Tax Return and application of Section 8B on certain exporters.

    (ii) Process of Past Missing Amounts

    The issue of past missing amounts has been solved as under:

    (a) That, in all cases wherein the missing amounts could be effectively pulled up by the system, have already been communicated to taxpayers for re-filing after adequate modifications in the refund claims/sales tax return;

    (b) That, in all remaining cases, where a taxpayer believes that a material amount of his refund claims has been unaccounted for, he may apply to the Deputy Commissioner concerned; and

    (c) That, the deputy commissioner will examine the case and after due verification, will sanction the due amount.

    The FBR directed chief commissioners concerned to keep a complete log of the pending missing amount refund cases in their formations and ensure their disposal and processing in the shortest possible time as per law.