Govt moves to broaden tax net

Attention: open in a new window. PDFPrintE-mail

ISLAMABAD : The government has created a new post of commissioner of broadening of tax base at the Federal Board of Revenue headquarter.

A notification issued on Wednesday empowers the commissioner to issue notices to all non-filers of income tax returns.

All cases of non-filers of income tax returns, who are potential taxpayers liable to furnish their returns of income and have been identified on the basis of information collected at FBR for broadening of tax base.

On the broadening of tax base, the FBR has set a target to bring 100,000 people in the tax net in the current fiscal year. Notices have been issued to more than 10,000 people in July in this regard.

Finance Minister Ishaq Dar announced in the budget that 500,000 rich people would be brought in the tax net during the current financial year on the basis of financial transactions and data collected from Nadra.

The number of people who file income tax returns fell to less than 800,000 in FY12.

Non-corporate tax-payers file returns until Sept 30, 2013. This year it was expected that the number of return filers will go up following government decision in the budget, making it mandatory for all people to file returns electronically.

The FBR had the data of rich people who were not on the tax roll or did not file tax returns, but it did not share it with its field staff to avoid its misuse.

The board has initiated statutory proceedings against people who failed to respond to outreach notifications through issuance of notices under Section 114 of the Income Tax Ordinance, 2001.

In case a taxpayer persists on non-compliance, provisional assessment will be finalised. But the taxpayer will still have the option to file a return accompanied by a wealth statement and reconciliation of wealth statement within 60 days whereby the provisional assessment order will be automatically initiated.

If the taxpayer does not file the return and required documents within 60 days, the tax liability raised as per the provisional assessment order will become final and will be recoverable and, if necessary, penal and prosecution proceedings, which may result in imprisonment and fine, will also be initiated in selected cases for creating a credible deterrence.

Courtesy: Dawn

Forex open Market rates & comments Archive

Login Form