Karachi, September 27, 2023 – The Federal Board of Revenue (FBR) is contemplating an extension of the deadline for filing income tax returns for the tax year 2023, following a surge in complaints from taxpayers grappling with technical difficulties in the online filing process.
The original deadline for filing income tax returns, slated for September 30, 2023, encompasses all taxpayers, including salaried individuals, business proprietors, Associations of Persons (AOPs), and companies with special accounting years.
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Sources within the FBR, while emphasizing that a final decision has not been reached, have confirmed that the organization is actively considering the extension in light of the mounting concerns raised by taxpayers.
The primary cause for concern revolves around the glitches and complications that have surfaced within the recently launched online return filing system, known as IRIS 2.0, which was introduced by the FBR in August 2023.
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The Federal Tax Ombudsman (FTO) has also taken notice of the situation and directed the FBR to address the issues within the portal. The FTO expressed concerns over the lack of a proper pilot run before the system’s launch, calling it a non-serious approach.
The Karachi Tax Bar Association (KTBA) has been vocal in its demands for prompt resolutions to the issues plaguing the return filing process. Zeeshan Merchant, the Convener of the IRIS Executive Committee at KTBA, shared his concerns during an interview with Pkrevenue.
Merchant highlighted the recurring breakdowns in the online system, asserting that these frequent disruptions are causing significant hindrances for taxpayers attempting to file their returns.
Additionally, Merchant criticized the FBR for the abrupt introduction of the new return filing system without adequate testing, particularly given that the changes occurred during the peak annual return filing season.
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One of the prominent issues brought to light by Merchant pertains to Section 7E of the Income Tax Ordinance, 2001, which deals with deemed income on immovable property. While this issue was resolved for non-filers, it remains unresolved for income tax return filers.
Another issue he raised relates to the wealth statements of non-residents. Under the current system, non-residents encounter difficulties when attempting to delete data from previous years’ wealth statements, posing additional challenges to the filing process.
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Despite numerous communications from KTBA and other stakeholders, some issues have been addressed, but many persist, leaving taxpayers struggling with daily inconveniences and system crashes caused by the continuous introduction of new software and system enhancements by the FBR.
As the FBR continues to grapple with these technical challenges, taxpayers across Pakistan await a decision on the potential extension of the return filing deadline for tax year 2023.
