Karachi, September 27, 2023 – The Pakistan Tax Bar Association (PTBA) has called upon tax authorities to provide taxpayers with a clear 90-day window, as mandated by statute, following the removal of all glitches from the online portal.
In a letter addressed to the Chairman of the Federal Board of Revenue (FBR), the PTBA outlined a series of concerns related to the IRIS 2.0 online return filing portal.
READ MORE: Balochistan Tax Bar Identifies Return Filing Challenges and Calls for Extension
It is important to note that the return filing deadline is September 30, 2023 for tax year 2023.
The PTBA has been vocal about technical and operational issues with IRIS 2.0 since its launch. They argue that the rollout of new software coinciding with the income tax return filing period has raised questions about the FBR’s decision-making process and imposed illegal restrictions on Tax Year 2023 returns. Regional tax bars have also echoed these concerns.
The key issues highlighted by the PTBA include:
READ MORE: Return Filing Glitches Annoy Non-Resident Pakistanis
Continual Glitches: The new IRIS Module 2.0 frequently encounters calculation errors, data-saving problems, and unresponsive buttons, leading to data loss and increased risks of errors in tax returns.
Non-Resident Taxpayers: IRIS Module 2.0 incorrectly attaches wealth statements to the returns of compliant non-resident taxpayers, causing legal issues and hindering the filing process.
Incorrect Turnover Tax: The portal erroneously calculates a turnover tax rate of 1.50% instead of the correct 1.25% for individual/AOP manufacturers with an annual turnover of up to 50 million under section 113.
Property Sales Tax Calculation: The portal inaccurately calculates zero tax for immovable property sales with a holding period of 03 to 04 years under section 37(1A).
READ MORE: FBR Issues Procedure for Income Tax Return Filing Date Extension
Refund Adjustment: The system doesn’t allow adjustment of previous refunds against the current tax liability, depriving taxpayers of their lawful rights.
Incorrect Tax Calculation: The portal uses incorrect formulas for tax calculations under section 153, leading to taxpayers paying more than their actual liability.
Data Synchronization Issues: The portal fails to synchronize data correctly with the maloomat portal, increasing the risk of mistakes in declarations.
Challan Generation: Challan generation for withholding income tax is still slow and time-consuming, requiring an update for efficiency.
CPR Downloading Issue: Users encounter difficulties when trying to download Computerized Payment Receipts (CPRs), receiving an error message even for valid CPRs.
READ MORE: FBR May Extend Return Filing Date for Tax Year 2023 Amidst Technical Challenges
In light of these issues, the PTBA has urged the Chairman of the FBR to personally investigate the matter and issue directives to address these concerns promptly. They also request that taxpayers be given a statutory period of 90 clear days to submit their income tax returns once the portal is error-free. Timely resolution of these matters would not only be appreciated by taxpayers and the legal fraternity but would also enhance the collection of taxes at the appropriate time for the national exchequer.
