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Category: Taxation

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Will FBR further extend return filing date to match record?

KARACHI: Today i.e. December 31, 2019 is the last date for filing income tax returns for tax year 2019 and Federal Board of Revenue (FBR) may not able to reach 2.74 million returns of tax year 2018.

The income tax return filing for tax year 2018 has increase to a new record level of 2.74 million by December 29, 2019, as shown in the Active Taxpayers List (ATL) issued on December 30, 2019.

The FBR received 1.8 million tax returns for tax year 2019 by December 12, 2019 and it is apparently difficult for the revenue authorities to reach the record level in 18 days.

Tax experts said that the FBR had set a target of 3.5 million returns for tax year 2019. To achieve this number the FBR has to extend the return filing date.

The last date for filing of income tax return other than companies was September 30, 2019 since then the FBR granted four extensions to facilitate taxpayers.

All the taxpayers including companies to file their returns by mid-night December 31, 2019.

It is interesting to note that no tax body or business associations have asked the FBR to further extend the date beyond December 31, 2019.

The income tax return filing reached to a new record high of 2.74 million as people making compliance to avoid 100 percent additional tax on persons not appearing on Active Taxpayers List (ATL).

Sources in Federal Board of Revenue (FBR) attributed the record increase in return filing to the amendment to Income Tax Ordinance, 2001 through Finance Act, 2019.

In the last budget 2019/2020 a new Tenth Schedule was inserted to Income Tax Ordinance, 2001 under which persons not appearing on ATL would liable to pay 100 percent more withholding tax on certain transactions.

The ATL for tax year 2018 issued on March 01, 2019 in which 1.59 million names were appeared of those taxpayer, who filed their returns by due date.

However, later the FBR granted extension in date for filing returns due to introduction of a tax amnesty scheme.

The extension for filing income tax returns for tax year 2018 was granted up to August 09, 2019.

The return filing up to August 09, 2019 for tax year 2018 jumped up to 2.5 million from 1.59 million returns, which were part of the first ATL issued March 01, 2019.

The insertion of Tenth Schedule to Income Tax Ordinance, 2001 speed up the return filing by taxpayers in order to avoid higher tax rate on certain transactions.

Previously, people filing their annual income tax returns after due date were not allowed to appear on the ATL. However, another provision was added to the main statute under which persons by paying penalty can include their name to ATL.

December 31, 2019
Procedure to get extension for filing return, statement

KARACHI: In case a person unable to file annual return and wealth statement by due date the he/she has right to get extension in date on various grounds by furnishing an application to Commissioner Inland Revenue.

Section 119 of the Income Tax Ordinance, 2001 provided the procedure to get date extension in filing annual return and wealth statement.

Section 119: Extension of time for furnishing returns and other documents.

(1) A person required to furnish —

(a) a return of income under section 114 or 117;

(c) a statement required under sub-section (4) of section 115; or

(d) a wealth statement under section 116,

may apply, in writing, to the Commissioner for an extension of time to furnish the return, or statement, as the case may be.

(2) An application under sub-section (1) shall be made by the due date for furnishing the return of income, or statement to which the application relates.

(3) Where an application has been made under sub-section (1) and the Commissioner is satisfied that the applicant is unable to furnish the return of income, 3[ ] or 4[ ] statement to which the application relates by the due date because of —

(a) absence from Pakistan;

(b) sickness or other misadventure; or

(c) any other reasonable cause,

the Commissioner may, by order, in writing, grant the applicant an extension of time for furnishing the return, or statement, as the case may be.

(4) An extension of time under sub-section (3) should not exceed fifteen days from the due date for furnishing the return of income, employer’s certificate, or statement, as the case may be, unless there are exceptional circumstances justifying a longer extension of time:

Provided that where the Commissioner has not granted extension for furnishing return under sub-section (3) or sub-section (4), the Chief Commissioner may on an application made by the taxpayer for extension or further extension, as the case may be, grant extension or further extension for a period not exceeding fifteen days unless there are exceptional circumstances justifying a longer extension of time.

(6) An extension of time granted under sub-section (3) shall not, for the purpose of charge of default surcharge under sub-section (1) of section 205, change the due date for payment of income tax under section 137.

December 31, 2019
FBR suspends two officers of preventive Lahore

ISLAMABAD: Federal Board of Revenue (FBR) on Monday suspended two customs officers of Model Customs Collectorate (MCC) Preventive, Lahore with immediate effect.

The FBR suspended the BS-16 officers including Muzaffar Hussain and Khalid Pervaiz Bhutta for a period of three months.

The revenue body suspended the officers using powers under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules, 1973.

December 31, 2019
FBR’s field offices directed to update employees’ database

KARACHI – The Federal Board of Revenue (FBR) has issued a directive to all field offices of Pakistan Customs and Inland Revenue, emphasizing the urgent need to update employee data.
(more…)

December 31, 2019
Meeting discusses tax rates on immovable properties

ISLAMABAD: A meeting chaired by Dr. Abdul Hafeez Shaikh, adviser to the Prime Minister on Finance and Revenue, discussed proposals related to tax rates on properties, and realization of property valuation tables.
(more…)

December 30, 2019
FBR urged to resolve return filing issue of shopkeepers, paid taxes under amnesty

KARACHI: Karachi Tax Bar Association (KTBA) has urged Federal Board of Revenue (FBR) to resolve return filing by shopkeepers and persons paid duty and taxes under amnesty scheme.

The KTBA in a letter on Monday, urged the FBR to resolve the issues of retailers and small traders in filing their returns. Further, those persons are also in difficult state who had paid taxes under amnesty scheme but failed to file their returns.

The KTBA previously submitted it observations on the issues through letters dated September 20 and October 02 and October 30, 2019 with reference to woes of Amnesty Filers and Shopkeepers/Traders in context of Return filing.

The KTBA reiterated that their issues are still unresolved owing to which they cannot file their Tax Returns for TY 2019 despite repeated extensions.

The same are being narrated hereunder briefly to invite your necessary attention yet once again.
The KTBA said that it is critical to decide the fate of filers of the Assets Declaration Scheme of 2019 who could not submit their declarations due to untimely closure of the option on IRIS on July 03, 2019.

Consequent to which, they could not revise their wealth statements for the Tax Year 2018, which you would appreciate is a necessary component for filing the return of income and wealth for the next year i.e. Tax Year 2019.

It is apprehended that if they are not allowed to submit their declarations, which they have not been so far, in the last six (06) months, their right to timely file their returns of income for the Tax Year 2019 is systematically been jeopardized and mere extending date of filing wont resolve their problem.

The group of taxpayers consisting of Shopkeepers and Traders of the country who still have to be given, inter alia, a final format of Return for their tax filing, which the FBR introduced vide its notification under Sections 99B and 9C of the Ordinance and committed that the same would be applicable right from the very Tax Year of 2019.

The final notification, however, has not yet been issued by FBR either to confirm or to dispel their confusion owing to which, this large group of taxpayers have not yet been able to file their tax return.

The KTBA said that the instant request should not be treated for further extension in return filing date.

“It is, therefore, all befitting that the System for submitting Amnesty should be opened for those who paid their taxes on July 3rd and the final Notification for Shopkeepers/Traders is issued to enable them file their Tax returns.”

December 30, 2019
IR offices observe extended working hours for collection

ISLAMABAD: The offices of Inland Revenue will observe extended working hours on December 30 and 31, 2019 to facilitate collection of duty and taxes.

Federal Board of Revenue (FBR) issued instructions on Monday directing all Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) to observe extended working hours on December 30 and 31, 2019 to facilitate taxpayers in payment of duty and taxes.

Therefore, the IR offices will remain open till 8:00 pm on Monday December 30, 2019 and till 10:00pm on Tuesday December 31, 2019 to facilitate taxpayers.

The tax offices will also help taxpayers in filing their annual income tax returns and statements of assets.

December 30, 2019
Convicted persons to display names at business places

KARACHI: A person, who is convicted in an office of smuggling, is required to display notice of conviction for a period of three months.

If the person fails to do so the he commits further offence.

Under the updated Customs Act, 1969, the section 189 of the Act granted made it compulsory for a person who is convicted for the offence of smuggling to display the notice of conviction.

Section 189: Notice of conviction to be displayed

Sub-Section (1) Upon the conviction of any person for the offence of smuggling, the Federal Government may require him to exhibit in or outside, or both in and outside his place of business, if any, notices, of such number, size and lettering, and placed in such positions and containing such particulars relating to conviction as it may determine, and to keep them so exhibited continuously for a period not less than three months from the date of conviction; and, if he fails to comply fully with the requirement, he shall be deemed to have committed a further offence under this Act of the nature of the original offence for which he was convicted.

Sub-Section (2): If any person so convicted refuses or fails to comply fully with any such requirement, any officer authorized in that behalf by an order of the Federal Government in writing may, without prejudice to any proceedings which may be brought in respect of any such refusal or failure, affix the notices in or outside, or both in and outside, the place of business of such person in accordance with the requirement of the Federal Government in pursuance of sub-section (1).

Sub-Section (3): If, in any case, the Federal Government is satisfied that the exhibition of notices in accordance with the requirements of the provisions of sub-section (1) or sub-section (2) will not effectively bring the conviction to the notice of persons dealing with the convicted person, the Federal Government may, in lieu of, or in addition to any such requirement, require the convicted person to exhibit for such period, not being a period less than three months, on such stationery used in his business as may be specified in the requirement, a notice placed in such position and printed in type of such size and form and containing such particulars relating to the conviction as may be specified in the requirement; and, if he fails to comply fully with the requirement, he shall be deemed to have committed a further offence under this Act of the nature of the original offence for which he was convicted.

December 29, 2019
Commissioner empowered to make assessment of concealed income

KARACHI: A commissioner of Inland Revenue has been empowered to make assessment of income detected as concealed income by Federal Board of Revenue (FBR) or any other agency.
(more…)

December 29, 2019
FBR issues fresh jurisdictions of commissioner appeals

ISLAMABAD: Federal Board of Revenue (FBR) has issued fresh jurisdictions of commissioner appeals.

The FBR issued following jurisdiction order with effective from December 18, 2019.

01. Commissioner Inland Revenue (Appeals-I), Karachi

Jurisdiction
All Cases of taxpayers falling under the jurisdiction of Large Taxpayers Unit Karachi with their names starting with alphabets from A to L along with their directors/partners.
Further, he will also continue to exercise jurisdiction over the cases which are already specially assigned by the Board.

02. Commissioner Inland Revenue (Appeals-II), Karachi

Jurisdiction
All cases of taxpayers falling under the jurisdiction of Large Taxpayers Unit Karachi with their names starting with alphabets from M to Z along with their directors/partners.
Further, he will also continue to exercise jurisdiction over the cases which are already specially assigned by the Board.

03. Commissioner Inland Revenue (Appeals-III), Karachi.
Jurisdiction
All cases of taxpayers falling under the jurisdiction of Corporate Regional Tax Office, Karachi.

04. Commissioner Inland Revenue (Appeals-IV), Karachi
Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Large Taxpayers Unit-II Karachi and Regional Tax Office-II, Karachi.

05. Commissioner Inland Revenue (Appeals-V), Karachi.
Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office-III, Karachi.

06. Commissioner Inland Revenue (Appeals), Hyderabad.
Jurisdiction
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Hyderabad.

07. Commissioner Inland Revenue (Appeals), Sukkur.

Jurisdiction
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Sukkur.

08. Commissioner Inland Revenue (Appeals), Quetta

Jurisdiction
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Quetta.

09. Commissioner Inland Revenue (Appeals-I), Lahore.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Zone-I, II, & AEOI of Large Taxpayers Unit, Lahore.

10. Commissioner Inland Revenue (Appeals-II), Lahore.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Zone-I, II, III, & IV of Corporate Regional Tax Office Lahore.

11. Commissioner Inland Revenue (Appeals-III), Lahore.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Zone-I, II, III of Regional Tax Office-II Lahore and RTO Sahiwal.

12. Commissioner Inland Revenue (Appeals-IV), Lahore.

Jurisdiction.
All cases specially assigned by the Board time to time. Further, he will also continue to exercise jurisdiction over the cases which are already specially assigned by the Board.

13. Commissioner Inland Revenue (Appeals-V), Lahore.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Zone-III & IV of Large Taxpayers Unit Lahore.

14. Commissioner Inland Revenue (Appeals-VI), Lahore

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Zone-V, VI & VII of Corporate Regional Tax Office Lahore.

15. Commissioner Inland Revenue (Appeals-VII), Lahore.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Zone-IV, V & WHT Zone of Regional Tax Office-II Lahore.

16. Commissioner Inland Revenue (Appeals-I), Islamabad.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Large Taxpayers Unit, Islamabad.

17. Commissioner Inland Revenue (Appeals-II), Islamabad.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Islamabad and Regional Tax Office, Abbottabad.

18. Commissioner Inland Revenue (Appeals-III), Islamabad.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Rawalpindi.

19. Commissioner Inland Revenue (Appeals-IV), Islamabad.

Jurisdiction.
All cases specially assigned by the Board from time to time. Further, the CIR (Appeals-IV), Islamabad will also continue to exercise jurisdiction over the cases which are already specially assigned by the Board.

20. Commissioner Inland Revenue (Appeals), Peshawar.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Peshawar.

21. Commissioner Inland Revenue (Appeals), Multan.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Multan.

22. Commissioner Inland Revenue (Appeals), Bahawalpur.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Bahawalpur.

23. Commissioner Inland Revenue (Appeals), Gujranwala.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Gujranwala.

24. Commissioner Inland Revenue (Appeals), Sialkot.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Sialkot.

25. Commissioner Inland Revenue (Appeals-I). Faisalabad.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Corporate Zone and Withholding Zone of Regional Tax Office Faisalabad.

26. Commissioner Inland Revenue (Appeals-II), Faisalabad.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Lyalpur Zone, Chenab Zone and Jhang Zone of Regional Tax Office Faisalabad.

27. Commissioner Inland Revenue (Appeals), Sarghoda.

Jurisdiction.
All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Sargodha.

December 28, 2019