KARACHI, November 30, 2023 – The Federal Board of Revenue (FBR) has issued a directive to initiate action against tax officials who have failed to file their income tax returns.
The move comes in response to reports suggesting leniency granted to FBR officials, allowing them to file returns without fines or penalties until December 31, 2023.
In a social media message, the FBR spokesman stated, “FBR directs Commissioners to issue notices to non-filers, including FBR officers, if returns have not been filed, even after the expiry of the extension granted.” This directive underscores the FBR’s commitment to maintaining transparency and accountability within the taxation system.
The reported actions of Chief Commissioner Inland Revenue of Regional Tax Office (RTO) – II, Karachi, granting an extension until December 31, 2023, for tax officials who missed the October 31, 2023 deadline for the tax year 2023, have sparked concern. Notably, this extension covers not only the current year but also previous years, and it comes without the imposition of customary late filing penalties.
The swift response from the FBR signals a clear stance against any leniency that undermines the established regulations and penalties outlined in the Income Tax Ordinance of 2001. The ordinance specifies penalties for individuals failing to furnish a return of income within the due date. Penalties range from 0.1% of the tax payable per day to a minimum of Rs 10,000 (for individuals with 75% or more income from salary) and Rs 50,000 in all other cases. The penalties can escalate to a maximum of 200% of the tax payable in a tax year.
A senior officer emphasized that the provisions of the Income Tax Ordinance apply universally, including to government employees. Instead of offering amnesty, the suggestion was to issue notices under Section 114, compelling non-compliant officials to file their returns along with fines and penalties prescribed by law. Additionally, the proposal included the initiation of departmental inquiries against non-compliant tax officials, setting an example for the entire nation.
This proactive approach by the FBR reinforces its commitment to maintaining the integrity of the tax system, ensuring that all individuals, including government employees, adhere to the prescribed regulations. The directive to take action against non-filer tax officials underscores the importance of accountability and transparency in fostering a fair and just taxation environment within the country.
