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Tag: Federal Board of Revenue

The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.

  • Taxpayers to get profile update format at IRIS portal

    Taxpayers to get profile update format at IRIS portal

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued draft amendment for notifying format for updating profile by taxpayers.

    The FBR issued SRO 1341(I)/2020 dated December 16, 2020 to issue draft amendment to Income Tax Rules, 2002.

    A new rule 34B has been proposed for taxpayer’s profile. The FBR said that this rule shall apply for the purpose of section 114A of the Income Tax Ordinance, 2001, which provides for the furnishing of a taxpayer’s profile.

    A taxpayer’s profile shall be filed electronically on the prescribed format and manner as provided on IRIS web portal.

    The taxpayer’s profile shall be verified in the manner specified on IRIS web portal.

    Through Finance Act, 2020 a new section 114A was inserted to Income Tax Ordinance, 2001 for making it mandatory for taxpayers to update their profile.

    Following is the text of Section 114A:

    Section 114A: Taxpayer’s profile.

    (1) Subject to this Ordinance, the following persons shall furnish a profile, namely:-

    (a) every person applying for registration under section 181;

    (b) every person deriving income chargeable to tax under the head, “Income from business”;

    (c) every person whose income is subject to final taxation;

    (d) any non-profit organization as defined in clause (36) of section 2;

    (e) any trust or welfare institution; or

    (f) any other person prescribed by the Board.

    (2) A taxpayer’s profile-

    (a) shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed;

    (b) shall fully state, in the specified form and manner, the relevant particulars of –

    (i) bank accounts;

    (ii) utility connections;

    (iii) business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer;

    (iv) types of businesses; and

    (v) such other information as may be prescribed;

    (c) shall be signed by the person being an individual, or the person’s representative where section 172 applies; and

    (d) shall be filed electronically on the web prescribed by the Board.

    (3) A taxpayer’s profile shall be furnished,-

    (a) on or before the 31st day of December, 2020 in case of a person registered under section 181 before the 30th day of September, 2020; and

    (b) within ninety days registration in case of a person not registered under section 181 before the 30th day of September, 2020.

    (4) A taxpayer’s profile shall be updated within ninety days of change in any of the relevant particulars of information as mentioned in clause (b) of sub-section (2).

  • FBR issues procedure for conducting e-audit

    FBR issues procedure for conducting e-audit

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued procedure for conducting electronic audit by officers of Inland Revenue.

    An amendment was introduced to Sales Tax Act, 1990 through Finance Act, 2020 under which commissioner of Inland Revenue authorized to conduct audit proceedings electronically through video link or any other facility as prescribed by the FBR.

    The FBR now made amendments to Sales Tax Rules, 2006 to implement the law introduced through Finance Act, 2020.

    The FBR said where a case has been selected under section 25 or section 72B of the Sales Tax Act, 1990, as the case may be, and the competent authority issues directions to conduct e-audit, the following procedure shall be adopted:

    (a) the concerned commissioner Inland Revenue shall serve a notice under sub-section (1) of Section 25 of the Act to the registered person specifying the reasons for selection of his case for audit;

    (b) The commissioner Inland Revenue having jurisdiction shall assign the case to an audit officer to conduct e-audit.

    (c) A registered person shall produce the record as required to be maintained under section 22 of the act through IRIS or an electronic data carrier as notified by the Board;

    (d) a registered person shall not be required to appear either personally or through authorized representative in connection with any proceedings under e-audit before the audit officer:

    Provided that a registered person may request for an opportunity of personal hearing through IRIS and such hearings shall be conducted exclusively through video links from personal computer system or any of the nearest tax facilitation center situated at the premises of the field formations.

    (e) the audit officer after considering all the information, documents or evidence, if the audit officer finds no discrepancy and have no conclusive proof against registered person, he may close the audit in IRIS under intimation to the commission inland revenue having jurisdiction;

    (f) after completion of audit, examination of record and obtaining registered person’s explanation on all the issues raised, if the audit officer does not agree with the declared version, he shall prepare an audit report, containing audit observations and finding. The audit officer shall forward the report to the commissioner Inland Revenue having jurisdiction and also send a copy of it to the registered person through IRIS;

    (g) the commissioner inland revenue having jurisdiction shall assign the case to an adjudication officer to make an order for assessment of tax under section 11, including imposition of penalty and default surcharge in accordance with section 33 and 34 of the Act;

    (h) on the basis of the audit report referred to in sub-rule (e), the adjudicating officer shall issue a show cause notice through IRIS to the registered person; and

    (i) the adjudicating officer may, if considered necessary, after obtaining the registered person’s explanation on all the issues raised in the audit report, pass an order under section 11 of the act.

  • IR officers given powers to check dirty money in transactions of jewelers, real estate, accountants

    IR officers given powers to check dirty money in transactions of jewelers, real estate, accountants

    ISLAMABAD: The Federal Board of Revenue (FBR) has granted enhanced powers to Inland Revenue (IR) officers to closely monitor transactions conducted by jewelers, real estate agents, and accountants in an effort to curb money laundering activities.

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  • FBR constitutes refund resolution committees for Punjab taxpayers

    FBR constitutes refund resolution committees for Punjab taxpayers

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday constituted complaint resolution committees for settlement of issues relating to sales tax refund matters for the taxpayers in the province of Punjab.

    The FBR constituted two complaint resolution committees for Punjab North and Punjab South.

    The complaint resolution committee Punjab (South) shall comprise following members for settlement of sales tax refund issues of taxpayers falling under the jurisdiction of field formation of Multan, Bhawalpur and Sahiwal:

    Rehman Naseem, ex-Senior Vice Chairman, All Pakistan Textile Mills Association: Convener

    Chief Commissioner Inland Revenue, Large Taxpayers Office (LTO), Multan: Member

    Chief Commissioner-IR, Regional Taxpayers Office (RTO), Multan: Member

    Filza Mumtaz, CEO, SHAHS and WEEN, ex-president, Women Chamber of Commerce and Industry (WCCI), Multan: Member

    Khawaja Anees, Director Mahmood Group of Companies, Multan: Member

    Additional Commissioner (HQ), LTO, Multan: Member/Secretary

    The complaint resolution committee Punjab (North) shall comprise following members for settlement of sales tax refund issues of taxpayers falling under the jurisdiction of field formations of Lahore, Faisalabad, Gujranwala, Sargodha and Sialkot:

    Gohar Ejaz, Patron In Chief, APTMA Lahore: Convener

    Chief Commissioner-IR, RTO, Lahore: Member

    Dr. Quratul Ain Irfan, Vice President, Pacific Pharmaceuticals, Lahore, Member

    Almas Hyder, Former President, Lahore Chamber of Commerce and Industry (LCCI), Lahore: Member

    Mohammad Raza Baqir, Executive Director, APTMA Lahore, Member

    Additional Commissioner (HQ) RTO, Lahore: Member/Secretary

    Terms of Reference (TOR) of the complaint resolution committees are as under:

    (i) Review the nature of complaints/issues possible solution and take immediate action for resolution;

    (ii) Follow up with concerned field formations till issue is resolved;

    (iii) Maintain complete record of complaints/issues, mechanism adopted for resolution and post resolution action required, if any; and

    (iv) Share date with FBR on monthly basis indicating issues received, issues resolved and issues pending for resolution and reasons for pendency.

  • FBR launches crackdown against non-filers; fine, penalty imposed

    FBR launches crackdown against non-filers; fine, penalty imposed

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday launched crackdown against non-filers of income tax returns for tax year 2020.

    Taxpayers including salaried persons, business individuals, Association of Persons and corporate entities, who were required to file their returns by due date i.e. September 30, 2020 extended up to December 08, 2020, have received notices of non-compliance.

    The taxpayers have received notices to file their returns for tax year 2020 along with payment of fine and penalty.

    The FBR issued the finalized return form for tax year 2020 on September 08, 2020 for which the last date was September 30, 2020. Tax bars of the country advised the FBR that taxpayers should be given 90 days for filing returns as per statute.

    Therefore, the FBR extended the date up to December 08, 2020 in one go and made it clear that no further date extension would be granted.

    The FBR by December 08, 2020 and received around 1.8 million income tax returns for tax year 2020. Further, around 300,000 taxpayers got date extension after filing applications on the last date.

    It means that the number of return filers, who made compliance of the due date, reaches to around 2.1 million for tax year 2020. It means a large number of taxpayers are required to file their returns with payment of fine and penalty.

    Following is the Section 182 of Income Tax Ordinance, 2001 under which fine and penalty would be imposed on non-compliant taxpayers:

    Under Section 182:

    Where any person fails to furnish a return of income as required under section 114 within the due date.

    Such person shall pay a penalty equal to 0.1% of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than forty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of forty thousand rupees:

    Provided that If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees, the minimum amount of penalty shall be five thousand Rupees.

    Where any person fails to furnish wealth statement or wealth reconciliation statement then such person shall pay a penalty of 0.1% of the taxable income per week or Rs.100,000 whichever is higher.

    The late filers will also require to pay a fee for appearance in Active Taxpayers List (ATL) for tax year 2020, which will be issued on March 01, 2021.

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

    Provided that without prejudice to any other liability under this Ordinance, the person shall be included in the active taxpayer ‘ list on filing return after the due date, if the person pays surcharge at Rupees-

    (i) twenty thousand in case of a company;

    (ii) ten thousand in case of an association of persons;

    (iii) one thousand in case of an individual.

    Persons fail to comply with filing requirement can face harsh action including imprisonment.

    Section 191. Prosecution for non-compliance with certain statutory obligations. —(1) Any person who, without reasonable excuse, fails to —

    (a) comply with a notice under sub-section (3)and sub-section (4) of section 114 or sub-section (1) of section 116; shall commit an offence punishable on conviction with a fine or imprisonment for a term not exceeding one year, or both.

    (2) If a person convicted of an offence under clause (a) of sub-section (1) fails, without reasonable excuse, to furnish the return of income or wealth statement to which the offence relates within the period specified by the Court, the person shall commit a further offence punishable on conviction with a fine not exceeding fifty thousand rupees or imprisonment for a term not exceeding two years, or both.

    Section 192: Prosecution for false statement in verification. — Any person who makes a statement in any verification in any return or other document furnished under this Ordinance which is false and which the person knows or believes to be false, or does not believe to be true, the person shall commit an offence punishable on conviction with a fine upto hundred thousand rupees or imprisonment for a term not exceeding three years, or both.

  • FBR’s online return filing portal restores after disruption

    FBR’s online return filing portal restores after disruption

    KARACHI: The online return filing portal of Federal Board of Revenue (FBR) restored after witnessing disruption on Monday.

    The IRIS – the online web portal of the FBR for income tax return filing – is working normally by Monday evening after taxpayers complained that the portal was not responding during first half.

    The portal was experiencing outage till noon on Monday.

    Earlier, in the day a large number of taxpayers unable to file their annual income tax returns on Monday as the official web portal of the FBR was not responding.

    The official website of the FBR https://www.fbr.gov.pk was responding very slowly. Further, the IRIS portal – the return filing portal – is showing different massage – including internal server errors.

    Tax practitioners said that last night the portal was responding well and they had filed returns of their clients. However, from Monday morning till noon the IRIS portal https://iris.fbr.gov.pk/infosys/public/txplogin.xhtml was not responding. However, in some cases it opens but with slow response.

  • FBR’s return filing portal not responding

    FBR’s return filing portal not responding

    KARACHI: A large number of taxpayers unable to file their annual income tax returns on Monday as the official web portal of the Federal Board of Revenue (FBR) is not responding.

    The official website of the FBR https://www.fbr.gov.pk is responding very slowly. Further, the IRIS portal – the return filing portal – is showing different massage – including internal server errors.

    Tax practitioners said that last night the portal was responding well and they had filed returns of their clients. However, from Monday morning till filing of this news item the IRIS portal https://iris.fbr.gov.pk/infosys/public/txplogin.xhtml was not responding. However, in some cases it opens but with slow response.

  • Return filing date extended up to December 24

    Return filing date extended up to December 24

    ISLAMABAD: Federal Board of Revenue (FBR) has granted date extension up to December 24, 2020 for filing annual income tax return to those taxpayers who submitted applications under Section 119 of Income Tax Ordinance, 2001.

    The last date for filing income tax return was expired on December 08, 2020. The FBR refused to grant general extension but allowed the taxpayers to file an application to commissioners having jurisdiction for seeking extension.

    The FBR directed commissioners of Inland Revenue to grant extension to all those taxpayers filed application i.e. online or manual by mid-night December 08, 2020. However, persons, who submitted application by December 10, 2020, have received approval on December 12, 2020 under Section 119(3) of Income Tax Ordinance, 2001 for filing their returns.

    The FBR received around 1.8 million tax returns for tax year 2020 by December 20, 2020. However, the FBR said that it had received about 300,000 applications for extension which would make the tally at 2.1 million for tax year 2020.

    Tax experts however believed that the number is remained very low as compared with the previous tax year. The FBR received around 2.98 million for tax year 2019 by December 06, 2020.

    They said that many taxpayers had failed to file their returns due to system glitches. They said that despite directives of the FBR for allowing extension on submission of applications, many taxpayers were unaware about the procedure of submitting the applications.

    The experts said that the FBR should allow a general date extension to all the taxpayers, who were required to file return under the law but failed to make compliance by due date.

  • Annual tax return filing by due date falls 29 percent

    Annual tax return filing by due date falls 29 percent

    ISLAMABAD: Filing of annual income tax returns fell by 29 percent for tax year 2020 by due date as compared with number of return filed by due date for tax year 2019.

    The FBR on Wednesday said that it had received around 1.8 million income tax returns for tax year 2020 by the due date i.e. December 08, 2020, which was extended from September 30, 2020. Since the FBR has refused to further extend the date so December 08, 2020 has been taken as the closing date for filing income tax returns for tax year 2020 without fine and penalty.

    The FBR received 2.53 million returns by due date i.e. February 28, 2020, which was extended from September 30, 2019 to October 31, 2019, then November 30, 2019, then December 16, 2019, then December 31, 2019, then January 31, 2020 and final extension granted up to February 28, 2020.

    The number of 2.53 million returns has been shown on the Active Taxpayers List (ATL) for tax year 2019 issued on March 01, 2020.

    Around 2.98 million returns for tax year 2019 have been filed till December 06, 2020 as shown in the updated weekly ATL issued on December 07, 2020.

    The latest number of returns filed for tax year 2020 has shown that it was around 39.6 percent or 1.18 million returns short when compared with latest ATL for tax year 2019.

    On the other hand the FBR on Wednesday said that it had received 1.8 million tax returns for tax year 2020 by the last date i.e. December 08, 2020 as compared with 1.73 million returns received on the same date last year, showing 4 percent growth. However, the FBR said that around 300,000 taxpayers had submitted applications for date extension by the due date. This number will also add to the total number of returns filed for tax year 2020.

    It is worth mentioning that the due date for filing income tax returns for tax year 2019 was extended up to February 28, 2020.

    Further, since the launch of ATL on March 01, 2020 or the due date of February 28, 2020 for tax year 2019 the FBR received another 450,000 returns for the same year up to December 06, 2020.

    The FBR through its press release said that its decision of not extending the date beyond December 08, 2020 was right. The decision for not extending the last date was taken to ensure discipline in return filing by due date.

    However, collection of tax with return has shown significant increase. The FBR said that collection with return increased to Rs22 billion by the due date i.e. December 08, 2020, was 63 percent higher when compared with Rs13.5 billion by the same date of the last fiscal year.

  • Electronic tax appeal filing made mandatory from January 01

    Electronic tax appeal filing made mandatory from January 01

    The Federal Board of Revenue (FBR) has made the filing of tax appeals mandatory through electronic means, effective from January 1, 2021. This shift to electronic filing aims to streamline the process and reduce the administrative burden on taxpayers and tax authorities alike.

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