ISLAMABAD: Federal Board of Revenue (FBR) has decided to take punitive measures against corporate entities for not filing income tax returns.
The FBR on Wednesday said that over 100,000 companies are registered with Securities and Exchange Commission of Pakistan (SECP) but above 50,000 are not filing returns.
Under Section 114 of the Income Tax Ordinance, 2001 it is mandatory for every registered company to file income tax return.
The FBR has identified different segments of persons/companies who are required to file income tax returns but are not making compliance with tax laws. “Such people will be brought in the tax net to reduce the burden of honest taxpayers,” the FBR said.
The FBR detected that one million filers claiming to have non-taxable income but evidence to the contrary exists with the main database.
Further, more than 3.5 million holders of National Tax Numbers (NTNs) are not filing return despite mandatory requirement under the law.
Another 7.4 million individuals whose withholding tax is being deducted, but they fail to file return as required under the law.
The FBR said that 105,000 holders of Sales Tax Registration Number (STRN) are also not filing income tax return despite mandatory requirement of the law.
“All persons/companies having taxable income are advised to file returns and avoid punitive consequence,” according to the FBR.
The last date for filing income tax return for tax year 2020 is December 08, 2020.