On April 24, 2023, the Federal Board of Revenue (FBR) released the updated Active Taxpayers List (ATL) based on income tax returns filed up until that date.
The latest ATL reveals an increase in the number of active taxpayers to 3.55 million for the tax year 2022, compared to the previous ATL released on March 01, 2023, which included the names of 3.21 million taxpayers for the same tax year.
The ATL for the tax year 2021, which was released last year, included returns filed until February 26, 2023, and had 4.19 million taxpayers.
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According to the FBR officials, taxpayers, including salaried individuals, business owners, associations of persons, and companies with a special year, have until September 30 to file their income tax return for the tax year 2022.
However, companies with a normal accounting year must file their annual return by December 31. The deadline for Tax Year 2022 was extended multiple times, and it concluded on December 15, 2022. Those who filed their returns by December 15, 2022, are eligible for the ATL, as well as those who filed after the due date but paid the surcharge.
It’s important to note that taxpayers who failed to file an income tax return for Tax Year 2022 will not benefit from reduced rates of withholding tax from March 01, 2023.
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The ATL is a central record of online Income Tax Return filers for the previous tax year and is published annually on March 01, remaining valid until the last day of February of the following financial year.
The Finance Act of 2018 introduced a provision that restricted the inclusion of a person’s name in the ATL if they failed to file a Tax Return by the specified due date. However, the Finance Act of 2019 allows for a person’s name to be included in the ATL, even if they filed a Tax Return after the due date specified by the Income Tax authorities.
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The FBR’s ATL is a critical tool to monitor and manage the tax system. It is a transparent record of taxpayers that allows tax authorities to verify compliance with tax laws and regulations. It helps identify taxpayers who have filed their tax returns and paid their taxes, providing a clear picture of the tax base.
In conclusion, the release of the updated ATL by the FBR is a significant step towards strengthening the country’s tax system. Taxpayers who have filed their returns by the due date or after paying the surcharge are eligible to be included in the list. It is crucial for all taxpayers to comply with tax laws and regulations and file their income tax returns on time to avoid any penalties and to contribute to the development of the country.
