KARACHI: Federal Board of Revenue (FBR) will issued Active Taxpayers List (ATL) for tax year 2019 on March 01, 2020 to enable persons filed income tax returns for the tax year availing reduced rates and other benefits.

ATL is published every financial year on the March 01 and is valid up to the last day of February of the next financial year, the FBR said.

For example, Active Taxpayer List for Tax year 2017 was published on March 01, 2018 and will be valid till February 28, 2019.

Similarly, Active Taxpayer List for Tax year 2018 was published on 1st March 2019 and will be valid till February 29, 2020.

The appearance of ATL has become more important following amendment introduced through Finance Act, 2019 under which 100 percent additional tax has been imposed on certain transactions by persons not appearing on the ATL.

The FBR in an official memorandum said that previously the law provided for the concept of a non-filer and stipulates higher withholding rates for the same which were adjustable at the time of filing of income tax return.

This tax regime had created a misconception that a non-filer can go scot free by choosing not to file income tax return.

The measure was meant to increase the number of filers, however over time the focus shifted to raising additional revenue only.

The measure had not achieved the desired results as the previous regime did not provide for any legal framework to ensure filing of return by such non filers.

In order to remove the aforesaid misconception, the concept and the term of ‘non-filer’ is being abolished from the statute, wherever occurring.

A separate Schedule has introduced to specifically provide a legal framework for punitive measures for persons not appearing on ATL and to ensure filing of return by such persons.

The main attributes of this scheme are as under:-

— Persons whose names are not appearing on the ATL will be subjected to hundred percent increased rate of tax.

— The withholding agents will clearly specify the names, CNIC or any other identification of such persons in the withholding statement so that legal provisions to enforce return can come into effect.

— Where a withholding agent is of the opinion that hundred percent increased tax is not required to be collected on the basis that the person was not required to file return, the withholding agent shall furnish an intimation to the Commissioner setting out the basis on which the person is not required to file return. The Commissioner shall accept or reject the contention on the basis of existing law. In case the Commissioner fails to respond within thirty days, permission shall be deemed to be granted to not deduct tax at hundred percent increased rate

— Where the person’s tax has been deducted or collected at hundred percent increased rate and the person fails to file return of income for the year for which tax was deducted, the Commissioner shall make a provisional assessment within sixty days of the due date for filing of return by imputing income so that tax on imputed income is equal to the hundred percent increased tax deducted or collected from such person and the imputed income shall be treated as concealed income.

— The provisional assessment shall be of no effect if the person files return within forty five days of completion of provisional assessment and the provisions of the Ordinance shall apply accordingly. Where return is not filed within forty five days of provisional assessment, it shall be treated as final assessment and the Commissioner shall initiate penalty proceedings for concealment of income.

ISLAMABAD: Appearance of a taxpayer in Active Taxpayers List (ATL) has become very important to avail benefit of reduced withholding income tax rate.

The ATL has become even more important after the inclusion of 10th Schedule to Income Tax Ordinance, 2001 through Finance Act, 2019 under which a person, who is not part of the ATL, is subject to 100 percent additional withholding tax.

According to Federal Board of Revenue (FBR) a taxpayer can check its active status in three different ways, which included:

Verification through Online Portal:

The ATL status check allows you to confirm your Active Taxpayer status.

Check Active Taxpayer status by SMS:

Check Individual’s Active Taxpayer status by SMS

Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.

Check Active Taxpayer status of AOP and Company by SMS

Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.

To check active status by taxpayers of Azad Jammu and Kashmir by SMS

For Individual, type AJKATL (space) CNIC (without dashes). Send it to 9966.

Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.

The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through Finance Act 2018.

Check Active Taxpayer status by downloading ATL from FBR official website.

DOWNLOAD LATEST ATL

The FBR said that a person appearing on the ATL will have following benefits:

Lower rates of tax deduction at source by banks on both profits and cash withdrawals

Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles

Lower rate of tax on buying and selling of property

Lower withholding tax rate on capital gains on sale of securities

Charges for tax on dividend will be lower

Lower rate of withholding tax on prize bond winnings

Allows you to claim back overpaid tax that has been withheld.

The FBR said that a person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL.

For example, to be part of the ATL published on 1st March 2018, a person must have filed a Tax return for the Tax year 2017. Similarly, to be a part of the ATL published on 1st March 2019, a person must have filed a Tax Return for the Tax year 2018.

Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018. For example, to be part of the ATL published on 1st March 2019, a person must file a Tax Return by the specified due date for the Tax year 2018.

However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.

Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under:

Company: Rs20,000

Association of Persons: Rs10,000

Individual: Rs1,000

A company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.

Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.

Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.

The FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

The name of late filer will appear on the ATL only after the payment of surcharge, the FBR added.

ISLAMABAD: The income tax return filing has increased to record level of 2.667 million, according to Active Taxpayers List (ATL) for tax year 2018 released on Monday.