ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has made mandatory for companies to submit certificate of income tax returns.
The SECP issued SRO 1048(I)/2019 dated September 11, 2019 to notify Companies (Submission of Information regarding Income Tax Return) General Order, 2019.
The regulator further said that the order would apply to companies for the financial year ended / ending or after June 30, 2018.
The SEPC said that each company specified in the order shall file a compliance certificate with the registrar in a prescribed format with respect to its status of compliance with the requirement of filing of income tax return under the Income Tax Ordinance, 2001.
“The compliance certificate shall be signed by the chief executive officer of the company or by the person duly authorized by the company to sign annual return.”
Presently the SECP has 104,030 registered companies. However, the compliance level in return filing by the companies is very low.
Under Section 114 of Income Tax Ordinance, 2001 every SECP registered company is required to file annual income tax return.
The SECP in the latest notification said that any contravention of the requirements would be an offence and liable to penalty.
A single member company or a private company having paid up capital of not more than Rs3 million where there is no change of particulars in the last annual return filed with the registrar and is not required to file return. The SECP said in this case compliance certificate of filing requirement is mandatory.
Further, a company (other than a company mentioned above) where there is no change of particulars in the last annual return filed with the registrar and is not required to file annual return. “Compliance certificate as per Schedule II Shall be filed along with Form C (Annual return of companies in case there is no change of particulars since last annual return filed with the registrar).”