KARACHI: Pakistan Tax Bar Association (PTBA) has demand the government of extending the last date for filing income tax return and wealth statement for a month i.e. November 30, 2017 in order to increase the number of return filers and facilitate existing taxpayers.
PTBA, in a letter to Finance Minister Ishaq Dar, said that it was first time in the history of FBR that under the guidance of Tariq Mahmood Pasha, the senior team members of FBR, Nausheen Javaid Amjad and Khawaja Adnan Zahir are making a concerted effort in creating awareness regarding filing of tax returns amongst non-filers.
The PTBA said that the low tax base has put undeniable burden on the existing taxpayers and gravely impacted the tax to GDP ratio. The tax facilitation of the existing taxpayers and simplification of various tax laws and procedures are important areas that require government’s attention as well.
It mentioned that various amendments and fundamental changes have been made from time to time even after introduction of Income Tax Return and wealth statement forms 2017, which were finalized and uploaded on the web portal “IRIS System” through final SRO No. 981(1)/2014 dated September 28, 2017 i.e. after the deadline of the tax returns i.e. August 31, 2017 and almost two days earlier the deadline of September 30, 2017. It is also to be placed on record that the final SRO in respect of corporate tax return for the tax year 2017 was also issued very little i.e. September 28, 2017, which was also due to be e-filed on the September 30, 2017, as the date was extended upto the October 31, 2017.
It is pertinent to mention here that the prescribed time under the law i.e. Section 118 of the Income Tax Ordinance, 2001 for filing /e-filing of the tax return along with wealth statement form for the taxpayer fall under the FTR and salaried class is August 31, i.e. two months from the date the tax return, becomes due i.e. on July 01, every year and for business individuals and non-FTR, the prescribed time available under the statute is three months i.e. September 30, every year.
Therefore, it is a matter of deep concern for the taxpayers of the country that the prescribed time available under the ordinance to prepare and file/e-file the tax return and wealth statement has not be provided to them; as such, it is not only impossible for them to complete the task, but it is also not legal and justified at all as per the provisions of the Ordinance.
The tax bar said that it was also undeniable fact that the tax consultants are putting their efforts and contributing extra working hours to perform their professional and national duty i.e. to prepare and finalize the tax returns/wealth statements in order to complete the work. “This can be adjudged with the highest number of returns received this year in comparison to the figures of last year in the corresponding months,” it said and added that however the consultants were afraid that it would not be able to meet the deadline of October 3, 2017 to file 100 percent returns for their current prospective clients, which is a matter of great concern.
