Karachi, September 28, 2024 – The Pakistan Tax Bar Association (PTBA) has issued an urgent plea to the Federal Board of Revenue (FBR), citing the dysfunctional state of the IRIS tax return filing portal.
In a letter addressed to FBR Chairman Rashid Mehmood, PTBA President Anwar Kashif Mumtaz called for an immediate extension of the tax return deadline by at least one month, stressing the overwhelming challenges faced by compliant taxpayers due to the technical glitches plaguing the system.
The IRIS portal, which is central to the online submission of income tax returns, has reportedly been in a near-paralytic state, exacerbating the frustrations of both taxpayers and tax professionals as they scramble to meet the September 30, 2024 deadline. According to the PTBA, the system’s chronic underperformance, including frequent shutdowns and a host of computational errors, has rendered it virtually impossible for taxpayers to meet their obligations in a timely manner.
Systemic Failures of IRIS
In its communication, the PTBA detailed the persistent shortcomings of IRIS, many of which have remained unresolved despite being flagged to the authorities in prior years. One of the most pressing issues is the portal’s tendency to shut down daily between midnight and 4 AM, severely limiting the window during which taxpayers can access and utilize the system. Even during operational hours, users are reportedly grappling with sluggish performance and frequent system crashes.
Among the myriad of issues highlighted by the PTBA, the following have emerged as particularly egregious:
• Systemic Errors in Tax Calculation: The portal is inaccurately calculating taxes for Association of Persons (AOPs) by failing to exclude exempt income, thus taxing total income that has already been taxed. This computational flaw leads to inflated tax liabilities.
• Discrepancies in Minimum Tax Calculations: A longstanding issue, the system continues to incorrectly calculate the difference between minimum tax and normal tax liability, resulting in the erroneous addition of tax amounts that should not be due.
• Challan Processing Failures: Another frequent complaint revolves around the portal’s failure to register paid challans, leaving users unable to proceed with their return submissions.
• Data Loss and Inconsistencies: Taxpayers are reporting that data entered into the system often disappears after submission, forcing them to re-enter information multiple times. This data loss not only wastes valuable time but also increases the likelihood of errors in final submissions.
• Lack of Flexibility for Non-Residents: The portal is failing to account for non-resident taxpayers by keeping last year’s wealth data uneditable, causing further complications.
Call for Immediate Action
In the face of these technological failings, the PTBA has made a compelling case for a deadline extension, arguing that without a functional system, taxpayers are being set up to fail. The letter emphasized that, despite their best efforts, compliant taxpayers are facing undue stress and disruption in their efforts to meet the September 30 deadline. With the IRIS system nearly inoperable for the past two days, the PTBA asserts that a deadline extension is not merely a convenience but a necessity.
In addition to requesting a one-month extension, the PTBA also urged the FBR to swiftly address the root causes of the portal’s technical malfunctions. They pointed out that these issues have been recurrent over the past two years, with little to no improvement in the system’s performance. The association stressed that providing taxpayers with a seamless and reliable platform is paramount to ensuring compliance and promoting trust in the taxation system.
Impact on Taxpayers
For many taxpayers, the dysfunction of the IRIS portal has been a source of immense frustration. Those trying to file their returns have reported significant delays, wasted hours, and a general sense of uncertainty regarding the status of their filings. The lack of responsiveness from the FBR has only deepened these concerns, with many fearing that they will face penalties despite their best efforts to comply with the law.
The PTBA’s appeal reflects the growing urgency of the situation. In the final lines of their letter, the association underscored that without swift action, the already strained relationship between taxpayers and the FBR could deteriorate further. They remain hopeful, however, that their call for an extension will be heeded, allowing for a more orderly and fair process of tax return submissions.
In conclusion, as the September 30 deadline looms large, the ball is now in the FBR’s court. The PTBA has made it clear that without immediate intervention and technological improvements, the current tax season risks becoming a crisis for Pakistan’s taxpayers.
