Karachi, October 14, 2024 – The Karachi Tax Bar Association (KTBA) has called on the Federal Board of Revenue (FBR) to accept applications for extensions in return filing deadlines without imposing restrictive conditions. In a formal communication addressed to Badshah Khan Wazir, Member of IR Operations at FBR, KTBA President Syed Zafar Ahmad raised several critical issues regarding the current return filing process and the challenges faced by taxpayers.
The association advocated for a more flexible and accommodating approach in granting date extensions, especially for those facing genuine difficulties.
One of the key points highlighted by the KTBA is the frequent technical difficulties associated with the FBR’s online tax portal, IRIS. As is often the case on critical filing deadlines, the system becomes overwhelmed, resulting in connectivity and access issues for taxpayers attempting to file their returns. In light of these challenges, the KTBA proposed that manual extension applications be accepted as an alternative. The association emphasized that taxpayers should be allowed to submit extension requests in person at designated Tax Facilitation Desks (TFDs) under Section 119 of the Income Tax Ordinance.
The KTBA also raised concerns over what it described as the “en masse rejection” of extension requests by field formations, particularly in Karachi, on the eve of the September 30th deadline. According to the KTBA, many applications were rejected instantaneously without proper consideration, leading to the perception that the FBR had preemptively decided to deny all extension requests, regardless of the merit of the cases presented. The association urged FBR leadership to instruct field formations to carefully review each application on its own merits, rejecting only those that lacked valid justification. The KTBA warned that blanket rejections could force legitimate taxpayers into the category of late filers, causing unnecessary penalties and hardships.
Another key issue raised by the KTBA was the imposition of tax pre-payment conditions for granting extensions. The association argued that such requirements were not supported by any provision of law under Section 119 of the Income Tax Ordinance. KTBA pointed out that in several cases, particularly near the last deadline, extensions were granted only if taxpayers made advance payments, a practice that the association deemed both “illicit” and arbitrary.
While reaffirming its commitment to timely compliance, the KTBA stressed that granting these extensions without conditions would not only alleviate taxpayer grievances but also foster greater cooperation and trust between taxpayers and the tax authorities.