Karachi, September 12, 2024 – The Federal Board of Revenue (FBR) has granted powers to Commissioners of Inland Revenue (IR) to condone time-limits in order to facilitate taxpayers.
The FBR issued SRO 1444(I)/2024 on Thursday, officially allowing Commissioners-IR with jurisdiction to extend deadlines for applications or actions required under the Sales Tax Act, 1990, or its rules.
This new directive gives taxpayers more flexibility in complying with time-sensitive provisions, provided they follow specific conditions. The FBR clarified that the Commissioner-IR may condone such time-limits if an application is submitted explaining the reasons for delay, and if deemed appropriate, extend the time period for up to three years.
Key Conditions for Condonation
The FBR outlined several conditions that must be met for the time-limit to be condoned. These include:
1. Application Submission: The registered taxpayer, or a representative authorized by them, must submit an application to the relevant Commissioner-IR. The application should clearly state the grounds for the delay.
2. Processing Without Further Documentation: If no additional documents or information are required, the Commissioner-IR must make a decision based on the grounds provided within 30 days of receiving the application.
3. Requests for Additional Information: If the Commissioner-IR requires more documentation, the taxpayer must submit the requested materials. In such cases, the decision must be made within 45 days from the receipt of the complete application.
4. Merit-Based Decision: The Commissioner-IR is required to decide the case based on its merits, providing clear reasons for either approving or rejecting the application.
5. Three-Year Limit: If the application is approved, the Commissioner-IR has the authority to condone the time-limit for up to three years.
Reporting Requirements
In addition to granting the Commissioners this discretion, the FBR has mandated that each Commissioner-IR must submit a report to their respective Chief Commissioner-IR by the seventh day of each month. This report should include details of all cases processed during the preceding month.
The FBR’s move aims to make tax compliance easier and more efficient, particularly for businesses and individuals facing unavoidable delays in fulfilling their tax obligations. This change is expected to provide much-needed relief for taxpayers dealing with complex filing requirements under the Sales Tax Act.
The ability to condone time-limits, combined with clear guidelines and accountability measures, signals the FBR’s commitment to improving tax administration while balancing the needs of taxpayers.
