Lahore, August 12, 2025 – The International Lawyers Association has raised strong concerns over ongoing challenges in the filing of income tax returns for Tax Year 2025, warning that delays and system flaws could disrupt compliance for thousands of taxpayers.
The International Lawyers Association, an independent, non-profit body representing solicitors and legal professionals worldwide, addressed a formal letter to the Federal Board of Revenue (FBR) Chairman. The Lawyers noted that under SRO 1212(I)/2025, issued on July 8, 2025, the draft income tax return was published in accordance with Rule 34A of the Income Tax Rules, 2002. This rule mandates that the final return form must be notified within 30 days. However, even after the statutory deadline has passed, the final return for Tax Year 2025 remains pending.
According to the Lawyers, this delay is creating significant uncertainty for taxpayers and tax consultants, risking non-compliance with the September 30 deadline. The association further pointed out persistent technical problems with the IRIS e-filing system, such as:
1. Failure to adjust tax withheld under Section 235 for Associations of Persons (AOPs).
2. Inconsistent application of tax withheld under Sections 148 and 154.
3. Inaccessibility of return forms for non-resident taxpayers.
4. Frequent login failures and slow system performance.
In its recommendations, the association urged the FBR to:
• Immediately issue the final income tax return for Tax Year 2025 in line with Rule 34A.
• Fix the identified system glitches to ensure correct tax adjustments and consistent treatment.
• Remove the filing block for non-residents without delay.
• Improve IRIS server speed, especially during peak days.
• Provide timely updates to pre-filled data and enhance taxpayer support services.
The Lawyers stressed that unless these issues are promptly addressed, both compliance rates and public confidence in the tax system could suffer.