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