The PTBA said on Saturday it has sent a letter to the chairman of the Federal Board of Revenue (FBR) in this regard.
The tax bar pointed out an important aspect, which needs a prompt response from the FBR regarding the change in the definition of ‘company’ vide amendment made in section 80(2)(va) and (vb) through Finance Act, 2013:
“(va) a non-profit organization;
(vb) a trust, an entity or body of persons established or constituted by or under any law for the time being in force”
Earlier to this amendment, such organizations were assigned the status of “AOP” by the FBR.
After the said amendment the status of all such organizations should be changed from AOP to Company. But due to systemic error existing in IRIS; a number of such organizations still have the status of AOP in the IRIS system.
A number of such organizations have applied for approval under section(s) 2(36)/100C of the Income Tax Ordinance, 2001 but these have not been processed due to the reason that these organizations are not appearing in the folder of the relevant Commissioner of Corporate Tax Offices (CTOs), who has been assigned the power of approval under section 2(36)/100C of the Income Tax Ordinance, 2001.
In the light of the above-stated facts, the PTBA urged the FBR chairman to issue necessary instructions to PRAL to change the status of all such organizations from AOP to Company, so that the concerned commissioners can process the applications filed under section(s) 2(36)/100C of the Income Tax Ordinance, 2001.