FBR issues one million tax notices to enforce compliance

FBR issues one million tax notices to enforce compliance

ISLAMABAD: Federal Board of Revenue (FBR) has issued one million notices to registered taxpayers for enforcing compliance to the tax laws.

FBR officials on Friday said that the FBR issued one million notices till June 30, 2022 in both income tax and sales tax to registered persons and entities having turnover Rs100 million and above to enforce compliance against different sections the tax laws.

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According to the FBR it had taken several measures to boost revenue.  It said number of income tax return filers for TY 2020 has crossed 3.0 million.

FBR has embarked on a plan to integrate all sales outlets of tier-1 retailers with FBR’s central computerized system. Furthermore FBR has decided to implement Track and Trace System for specified goods/ products i.e. Tobacco, Cement, Sugar, Fertilizer and Beverages imported into or manufactured in Pakistan.

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The revenue body launched sectorial analysis of huge business concerns across the country by assessment and processing units in all field formations of Inland Revenue Service (IRS). Sectors like cement, sugar, cotton and tobacco remained under focus.

Legal actions (attachment of properties, arrests and seizures) has been made against huge tax-defaulters to create deterrence against tax-evaders.

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The FBR also took measures in audit and accounting wing. This has been entrusted with the task of designing audit policy as an audit compliance program on yearly basis. This current year following initiatives have been taken by the Audit & Accounting Wing:

The Audit Policy, 2020 for Tax Year 2019 is under process in view of the experience obtained from the past audit policies. In addition to that, the wing also monitors audit activities carried out in the field formation throughout the year.

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The FBR said this year, under DLI 6 of Pakistan Raises Revenue Program, FBR has conducted and completed 67 cases of comprehensive field audits of large taxpayers selected through the Audit Policy, 2019 for Tax year 2018 by the risk-based selection tool and monitored by the Compliance Unit through AMIS with associated reports submitted to FBR management which has been duly verified by the World Bank.

Software solution is introduced to provide continuous monitoring of the audit cases with sufficient documentation and assistance to the auditors.