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Tag: Active Taxpayers List

  • Finance Bill 2019: late filer salary persons allowed ATL entry

    Finance Bill 2019: late filer salary persons allowed ATL entry

    ISLAMABAD: The government has allowed late filers to include Active Taxpayers List (ATL) after payment of penalty. Presently, as per law the late filers are not allowed to ATL entry till next tax year.

    The government has proposed this relaxation through Finance Bill, 2019 as part of budget 2019/2020. The payment of penalty has been fixed Rs20,000 for companies, Rs10,000 for Association of Persons (AOPs), Rs3,000 for non-salaried persons and Rs1,000 for salaried persons.

    The Federal Board of Revenue (FBR) while explaining the Finance Bill, 2019, said presently law prohibits placing a person’s name on the ATL for the year if the return is not filed within the due date.

    Hence, a person who files a return of income after the due date would be subjected to higher tax rates meant for persons not appearing on ATL, for the ensuing year, creating a disincentive towards return filing.

    “The condition of not placing name on ATL for the whole year is being abolished.”

    Instead, such a person would be penalized by withholding any refund due to a late-filer in the tax year in which the return was filed late without incurring any liability of compensation for delayed refund.

    Further, a nominal tax for placement on ATL after the due date of filing of return has been imposed as under:-

    1. Company Rs. 20,000

    2. Association of persons Rs. 10,000

    3. Non-salaried individuals Rs. 3,000

    4. Salaried individuals Rs. 1,000

  • Income Tax Ordinance 2001: Late filers not to get names on ATL

    Income Tax Ordinance 2001: Late filers not to get names on ATL

    KARACHI: Late filers of income tax returns will not get their name on the Active Taxpayers List (ATL) that will be issued tomorrow (March 01, 2019).

    The Federal Board of Revenue (FBR) will issue the latest edition of ATL, which will carry names of those taxpayers who filed their income tax returns by due date for Tax Year 2018.

    With the issuance of new active taxpayers’ list the FBR will also suspend the weekly updated list as the late filers have been denied to have their names on the list.

    The previous PML-N government in its last budget announcement made a law to restrict the list with those name, who filed their list by due date.

    Through Finance Act, 2018 a new provision Section 182A was added to Income Tax Ordinance, 2001 for this purpose.

    Section 182A: Return not filed within due date.—

    Sub-Section (1): Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—

    (a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date; and

    “Explanation.—For the removal of doubt it is clarified that the provisions of this section shall apply from tax year 2018 and onwards for which the first Active Taxpayers List is to be issued on first day of March, 2019 under Income Tax Rules, 2002.; and

    (b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV.

    The FBR issued its last weekly updated ATL for Tax Year 2017 on Monday, February 25, 2019, which carried those taxpayers list who filed their returns up to February 24, 2019.

    The last ATL shows the FBR received 1.84 million returns till February 24, 2019 for tax year 2017.

    While, the FBR received around 1.55 million income tax returns for tax year 2018 by due dates for individuals and corporate entities.

    The appearance on ATL is important for a taxpayer to avail reduced rate of withholding tax rates.

    The appearance of name has become even more important after the amendments brought in to restrict non-filers in purchase / registering new motor vehicles and immovable properties.

  • FBR explains inclusion into ATL for availing tax benefits

    FBR explains inclusion into ATL for availing tax benefits

    ISLAMABAD: Federal Board of Revenue (FBR) has explained the inclusion into Active Taxpayers List (ATL) for availing reduced rates of withholding tax and other benefits.

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  • FBR gets 1.81 million active taxpayers for 2017

    FBR gets 1.81 million active taxpayers for 2017

    The Federal Board of Revenue (FBR) has reported a noteworthy surge in the total number of active taxpayers, reaching 1.81 million for the tax year 2017, according to the latest Active Taxpayers List (ATL) released on a weekly basis.

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  • Active taxpayers number surpasses 1.8 million for tax year 2017

    Active taxpayers number surpasses 1.8 million for tax year 2017

    KARACHI, [Date] – In a significant milestone for Pakistan’s tax revenue collection, the number of active taxpayers has exceeded 1.8 million for the tax year 2017, as reported in the latest weekly Active Taxpayers List (ATL) released by the Federal Board of Revenue (FBR).

    The FBR sources have confirmed that the total number of active taxpayers for Tax Year 2017 now stands at 1.801 million, with the ATL 2017 remaining applicable until February 28, 2019.

    The appearance of a taxpayer’s name on the ATL is mandatory for individuals and entities seeking to benefit from reduced rates of withholding tax. This achievement reflects the FBR’s concerted efforts to encourage tax compliance and expand the tax base.

    The FBR had set an ambitious target of reaching 1.8 million active taxpayers for the tax year 2017, a goal that has been successfully attained. Throughout the year, the FBR dedicated its resources and machinery to engage with both existing and potential taxpayers, urging them to file their income tax returns.

    Sources within the FBR revealed that taxpayers who missed the deadline for filing their returns for the tax year 2017 are still in the process of submitting their returns and gaining inclusion in the ATL. However, it’s important to note that this practice will not be allowed for the tax year 2018.

    The government, through the Finance Act of 2018, introduced an amendment to the Income Tax Ordinance, 2001, and created Section 182A. This amendment stipulated that late filers would not be treated as filers or active taxpayers. Consequently, the FBR received a total of 1.55 million returns for the tax year 2018, which will be the final count for the ATL 2018, set to be released on March 1, 2019.

    Despite the initially strict stance, sources within the FBR have indicated that the government is considering allowing late filers to submit their returns and have their names added to the ATL. This reconsideration recognizes the practical challenges and circumstances faced by late filers and aims to facilitate tax compliance while expanding the tax base.

    The achievement of surpassing 1.8 million active taxpayers for the tax year 2017 demonstrates the success of the FBR’s proactive efforts to encourage tax compliance and boost the government’s revenue collection. The ATL remains a valuable tool for promoting tax transparency and ensuring that eligible taxpayers benefit from reduced withholding tax rates.

    It is important to underline that tax compliance is essential for the sustainable growth and development of Pakistan’s economy. A broad tax base ensures that resources are available for critical public services and infrastructure development, ultimately benefiting the nation as a whole.

    As the government considers the possibility of allowing late filers for the tax year 2018, it underscores its commitment to promoting tax compliance while understanding the practical challenges faced by taxpayers. This flexibility is expected to further enhance the tax collection process and contribute to Pakistan’s fiscal stability.

  • Late return filers may be allowed entry into ATL

    Late return filers may be allowed entry into ATL

    Late return filers of income tax may soon have the opportunity to be included in the Active Taxpayers List (ATL) following proposed amendments to tax laws.

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