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Tag: ATL

  • FBR directs gas utilities to refuse commercial, industrial connections to non-ATL persons

    FBR directs gas utilities to refuse commercial, industrial connections to non-ATL persons

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday directed gas utilities not to provide connection to unregistered persons or not appeared on Active Taxpayers List (ATL).

    Chairman FBR Syed Shabbar Zaidi has sent letters to Managing Directors Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) wherein he has requested that consumers not present on ATL under Section 181A of Income Tax Ordinance, 2001 may not be provided commercial and industrial gas connections.

    Section 181 AA states: “Notwithstanding anything contained in any law, for the time being in force, any application for commercial or industrial connection, of electricity or gas shall not be processed and such connection, shall not be provided unless the person applying for electricity or gas connection is registered under Section 181A.”

    Under this provision of law a person seeking gas connection should be on Active Taxpayers List of the FBR.

    The chairman has stated in the letter that many users of commercial and industrial gas connection do not fall within ATL of the FBR.

    The chairman has requested that the list of all persons using industrial and commercial gas connections be shared with FBR as soon as possible.

    Moreover, intimation may be issued by the company to the users of such connections to comply with the aforesaid conditions laid down under the Income Tax law.

    The chairman has suggested appointing a ‘focal person’ to coordinate with FBR for this purpose.

  • Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons

    Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons

    KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates on imports of goods for persons appearing on Active Taxpayers List (ATL) and for persons not on ATL under Section 148 of Income Tax Ordinance, 2001 for tax year 2019/2020 effective from July 01, 2019.

    According to documents made available to PkRevenue.com the FBR said that the collector of customs shall collect the withholding tax rate at the prevailing rates from persons on the Active Taxpayers List (ATL) and double amount of tax from those persons, who are not on the ATL.

    The FBR said that 1 percent of the import value increased by Custom duty, sales tax and federal excise duty shall be collected. And in case persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 2 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    Tax to be collected from every importer of goods on the value of goods.

    1 (i) Industrial undertaking importing remeltable steel (PCT Heading 72.04) and directly reduced iron for its own use;

    (ii) Persons importing potassic of Economic Coordination Committee of the Cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004

    (iii) Persons importing Urea;

    (iv) Manufactures covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated 31st December, 2011.

    (v) Persons importing Gold; and

    (vi) Persons importing Cotton

    (vii) Persons importing LNG.

    Minimum Tax [Section 148(7)]
    The tax required to be collected under this section shall be minimum tax on the income of importer arising from the imports subject to sub-section (1) of this section and this sub-section shall not apply [i.e Adjustable] in the case of Import of:

    a. Raw material, plant, equipment & parts by an industrial undertaking for its own use;

    b. [motor vehicle] in CBU condition by manufacturer of motor vehicle].

    c. Large import houses as defined / explained in 148(7)(d)

    d. A foreign produced film imported for the purposes of screening and viewing]

    The tax collected under this section at the time of import of ships by ship-breakers shall be minimum tax. [Section 148(8A)]

    Industrial undertaking importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use, the tax rate shall be

    1.75 percent of the import value as increased by Custom-duty, sales tax and federal excise duty

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 3.5 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    2. Persons importing pulses shall pay 2 percent of the import value as increased by Custom-duty, sales tax and federal excise duty.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 4 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    3. Commercial importers covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated the 31st December, 2011, shall pay 3 percent of the import value as increased by custom-duty sales tax and federal excise duty.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 6 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    Commercial Importer importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use shall pay 4.5 percent of the import value as increased by Custom-duty, sales tax and federal excise duty.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 9 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    4. Persons importing coal shall pay 4 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 8 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    5. Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan as certified by the Drug Regulatory of Pakistan, shall pay 4 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 8 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    6. Ship breakers on import of ship shall pay 4.5 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 9 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    7. Industrial undertakings not covered under S.No 1 to 6 shall pay 5.5 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 11 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    8. Companies not covered under S. Nos. 1 to 7 shall pay 5.5 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 11 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    9. Persons not covered Under S.Nos1 to 8 shall pay 6 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 12 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    On Import of Mobile Phones by any Person (individual, AOP, Company) :

    C&F Value of Mobile Phone (in USD ($) ) Tax (in Rs)
    1. Up to $30 the tax rate shall be Rs. 70

    2. Exceeding $30 & up to $100 the tax rate shall be Rs. 730

    3. Exceeding $100 & up to $200 the tax rate shall be Rs. 930

    4.Exceeding $200 & up to $350 the tax rate shall be Rs. 970

    5.Exceeding $350 & up to $500 the tax rate shall be Rs. 3,000

    6.Exceeding $500 the tax rate shall be Rs. 5,200.

    Persons not appearing in the Active Taxpayers’ List :
    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e.

    C&F Value of Mobile Phone (in USD ($) ) Tax (in Rs)

    1. Up to $30 the tax rate shall be Rs. 140

    2. Exceeding $30 & up to $100 the tax rate shall be Rs. 1,460

    3. Exceeding $100 & up to $200 the tax rate shall be Rs. 1,860

    4.Exceeding $200 & up to $350 the tax rate shall be Rs. 1,940

    5.Exceeding $350 & up to $500 the tax rate shall be Rs. 6,000

    6.Exceeding $500 the tax rate shall be Rs. 10,400.

  • Finance Bill 2019: Money withheld of persons not appearing on ATL to be treated as unexplained

    Finance Bill 2019: Money withheld of persons not appearing on ATL to be treated as unexplained

    ISLAMABAD: The government has taken harsh stance against persons having taxable income but not on the tax roll.

    In this regard the law has been introduced under which persons not appearing on the Active Taxpayers List (ATL) and their amount withheld on transactions will be treated as unexplained.

    Commissioners of Inland Revenue, Federal Board of Revenue (FBR) have been empowered to make assessment of income of such persons and issue notices.

    A budget commentary issued by EY Ford Rhodes Chartered Accountants said that the concept of filers and non-filers was introduced in the Ordinance through the Finance Act, 2014.

    Through this concept a distinction was created between person who duly filed their tax returns and the remaining persons who were considered non-filers.

    The basic intention of the legislature was to obtain documentation and compel the non-filers to become registered tax filers.

    Over the years, major distinction was introduced in the rates of tax withholding under various sections of the Ordinance to make the non-filers suffer heavy withholding of tax so that they may be compelled to ultimately come within the tax net and file proper declaration of their tax returns with FBR.

    However, over the last five years, it has been observed that the percentage of increase in tax filers has not been significant and the numbers of tax filers is still quite low as compared to other comparable economies.

    The present government has been talking about broadening of the tax base more strongly and the Prime Minister himself has on many occasions indicated his strong desire to significantly broaden the tax base.

    It is now proposed to enact a separate schedule in the Ordinance to deal with persons who are not on the ATL i.e. who are not in the tax net and are not filing their declaration so far.

    In this connection, Section 100BA has been proposed which governs the collection or deduction of advance income tax, computation of income and tax payable by such persons.

    The Tenth Schedule generally provides that where ever tax is required to be deducted or collected under any provisions of the Ordinance from a person whose name is not appearing in the ATL, the rate of withholding will be doubled in case of deduction or collection from such persons.

    However, the schedule provides exception in case of the following payments –

    (1) Salary;

    (2) Payment to non-residents other than on account of royalty, fees for technical service, insurance premium

    (3) Payment to a Permanent Establishment in Pakistan of a non-resident person other than on account of providing services or contract or any general payment to a non-resident.

    (4) Payment on account of exports

    (5) Tax deductions from payment of rent

    (6) Tax deductions from withdrawal of balance from pension funds

    (7) Tax collection from cash withdrawal from a bank

    (8) Tax collection on banking transactions

    (9) Collection of tax by NCCPL

    (10) Collection of tax on domestic or commercial electricity consumption

    (11) Tax collection from steel melters

    (12) Purchase of air tickets

    (13) Functions and gatherings

    (14) Cable operators

    (15) Educational institutions

    (16) Dealers and commission agents

    (17) Purchase of international air tickets

    (18) Non-cash banking transactions

    (19) Payment for use of machinery and equipment

    (20) Remittance of education related expenses

    (21) Extractions of minerals

    (22) Tobacco

    The Schedule seeks to provide a mechanism where a withholding agent is satisfied that the person not appearing in the ATL is not required to be a tax filer and hence the deduction of tax should not be attracted from payments to such persons.

    In such a situation, the payer would be required to furnish an application to the Commissioner in writing electronically providing the details of the person from whom he intends not to collect tax, giving details about the payee and the nature of payment and the basis on which he is not liable to be a tax filer.

    The Commissioner on such application would decide the matter within 30 days and direct the payer accordingly.

    Assessment of such person

    — The Schedule requires the Commissioner to undertake a provisional assessment of the person from whom tax has been withheld under the Schedule but he has failed to file the return of income within the prescribed time or extended time.

    — The provisional assessment is proposed to be carried out within 60 days of the due date of filing of return. The income of such person in such a case shall be imputed on the basis of tax that has been withheld at source and shall be treated as un-explained income.

    — Once the provisional assessment has been finalized and served on such person, he can file a return of income within 45 days of the service of the provisional order. In which case the provisional assessment shall stands abated.

    — If a return of income is not filed within 45 days of service of order of provisional assessment, then such assessment is to be treated as final assessment order. In such a case the Commissioner is also proposed to be empowered to pass an order within 30 days of finalization of assessment for imposition of penalty on account of non-furnishing of return and concealment of income.

    — The Schedule also seeks to empower the Commissioner to amend an assessment on the basis of definite information from an audit or otherwise.

    Consequent to the proposed enactment of the Schedule, to withdraw concept of filers and non-filers from various provisions of the Ordinance, several amendments have been proposed in various withholding provisions to remove reference to Filer and non-Filer.

    Similarly the restrictions introduced on purchase of immovable property and moveable property on Non-filers in Section 227C are also proposed to be abolished.

  • Active taxpayers list shows 1.88 million return filers

    Active taxpayers list shows 1.88 million return filers

    KARACHI: The number of active taxpayers has surged to 1.88 million for the tax year 2018 as of April 07, 2019, according to an official document released on Monday. This marks a significant increase from the previous year, reflecting a growing compliance among taxpayers in Pakistan.

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  • FBR adds over 114,000 return filers to ATL

    FBR adds over 114,000 return filers to ATL

    ISLAMABAD: Federal Board of Revenue (FBR) has added over 114,000 return filers to Active Taxpayers List (ATL) following the grant of extension in filing income tax returns for Tax Year 2018 up to March 31, 2019.

    The FBR issued weekly updated ATL 2018 on Monday, which showed the number of active taxpayers increased to 1.75 million.

    The FBR issued first ATL 2018 on March 01, 2019 which had carried 1.6 million taxpayers in the list.

    The appearance of ATL is mandatory for availing reduced rate of withholding tax rate and other benefits available only to return filers.

    Through Finance Act, 2018, a section 182A was inserted to Income Tax Ordinance, 2001 which barred the late filers to appear on the ATL.

    Therefore, the ATL issued on March 01, 2019 only those taxpayers were included who filed their returns by December 15, 2018 in case of salaried persons, business individuals and companies with special years and December 31, 2018 for companies with normal tax year.

    However, the FBR last week extended the last date for filing income tax returns for all classes of taxpayers. Hence, those taxpayers who have filed their returns after December 15 or December 31 became eligible for ATL.

    Related Stories
    Late filers to become part of ATL as FBR extends last date for filing return up to March 31

  • FBR’s issues updated ATL, adds over 42,000 active taxpayers

    FBR’s issues updated ATL, adds over 42,000 active taxpayers

    ISLAMABAD: Federal Board of Revenue (FBR) updated Active Taxpayers List (ATL) on Monday and added around 42,000 taxpayers’ names since launch of new list.

    (more…)
  • Late filers may be allowed for Active Taxpayers List

    Late filers may be allowed for Active Taxpayers List

    KARACHI: Federal Board of Revenue (FBR) may allow taxpayers who filed their returns after due date to have their names on Active Taxpayers List (ATL).
    FBR sources said that the finance ministry had asked the revenue body to review the issue. The ministry of finance had received many representations on the issue.
    The government through Finance Act, 2018 introduced Section 182A of Income Tax Ordinance, 2001 to restrict late filers of income tax to appear on ATL for tax year 2018.
    The ATL for the tax year 2018 issued by the FBR on March 01, 2010 showed around 1.6 million return filers by due date for salaried class, business individuals and corporate entities i.e. December 15, 2018 and December 31, 2018.
    The last ATL for tax year 2017 issued by the FBR had shown around 1.84 million active taxpayers on the list. This means the FBR has lost around 240,000 active taxpayers on the list.
    Pakistan Tax Bar Association (PTBA), the apex tax bar of the country, urged the FBR to delete this section as this would result in discouraging potential taxpayers to become filers.
    “It will be another disaster like the provision of Section 214D of the Ordinance, which created huge pendency of tax audt cases approximately 1.2 million and finaly the government created facility for the existing taxpayers by introducing Section 214E of the Ordinance for disposal / closure of such cases in the Finance Supplementary (Amendment) Act, 2018.”
    Related Stories
    PTBA calls for including late filers into Active Taxpayers List by deleting Section 182A

  • KTBA requests FBR to include late-filers’ name into ATL

    KTBA requests FBR to include late-filers’ name into ATL

    KARACHI: The Karachi Tax Bar Association (KTBA) on Thursday requested tax authorities to include names of late filers of income tax returns, who already applied for extension, into Active Taxpayers List (ATL).

    The KTBA requested the chairman of Federal Board of Revenue (FBR) to issue instructions for inclusion of the names of those taxpayers who had duly applied for extension for filing of return of income and the rejection order of which was not passed by the commission and they filed return of income by the requested due date and also those taxpayers who are registered with FBR after June 2018 and are entitled for inclusion as per SRO831(I)/2015 dated August 21, 2015 in the ATL issued by the FBR.

    It said that the instruction will be in accordance with the true spirit of law and for the facilitation of taxpayers who fulfilled their responsibility as compliant taxpayers and will also encourage new taxpayers, consequently helping in increasing the tax base.

    The tax bar further said that it cannot be considered reasonable that these taxpayers should be treated as non-filer for the entire next year equating them with those non-filers who did not even bother to file return at all and you will be agree that both should not be treated in the same manner.

    Under Section 182A of Income Tax Ordinance, 2001 the taxpayers, who filed their returns after due date, have been denied to have their names into ATL for tax year 2018.

  • FBR issues ATL for Tax Year 2018, active taxpayers decline to 1.6 million

    FBR issues ATL for Tax Year 2018, active taxpayers decline to 1.6 million

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday launched new Active Taxpayers List (ATL) for Tax Year 2018, which is showing around 1.6 million taxpayers filed their income tax returns by respective due dates.

    The FBR issues ATL for the latest tax year on every first day of March. In the latest ATL the number of active taxpayers reduced to 1.6 million from 1.84 million as per the last weekly updated ATL for Tax Year 2017, showing fall of 240,000 returns submitted to the tax authorities.

    The number of active taxpayers will not further increased as late return filers have been deprived of appearing on the ATL.

    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 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.

    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.

  • ATL-2017 shows 1.824 million active taxpayers

    ATL-2017 shows 1.824 million active taxpayers

    Islamabad – The Federal Board of Revenue (FBR) has reported the receipt of an impressive 1.824 million income tax returns for the tax year 2017 by the week ending February 10, 2019.

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