LAHORE: The Federal Board of Revenue (FBR) is preparing to implement amended rules governing the inclusion of individuals and entities in the Active Taxpayers List (ATL). These amendments, which are now finalized, are expected to be formally introduced soon.
According to official sources, the FBR issued notification SRO 1448(I)/2024 on September 18, 2024, proposing key changes to the Income Tax Rules, 2002, primarily focused on ATL-related criteria. Stakeholders were invited to submit their feedback within seven days, a period that has now passed.
However, tax experts are calling for an extension of the comment period, arguing that the implications of the amended rules have not been adequately explained. “The draft notification details deletions and additions to the existing ATL rules but lacks an explanatory note outlining the impact of these changes on taxpayers and the general public,” stated a tax analyst.
The experts emphasized that without a comparative statement clearly explaining the changes and their effects, the public is left in the dark about how these amendments will influence tax obligations. “FBR should provide an additional seven days for public comments and issue a comprehensive breakdown of the proposed changes,” one expert recommended. They further criticized the FBR for using technicalities to rush through legal formalities without providing sufficient transparency on the real impact of the changes.
Under the new rules introduced by SRO 1448(I)/2024, a person’s name will be included in the ATL if they file their income tax return for the latest tax year by the due date or any extended due date. The FBR clarified that the “latest tax year” refers to the most recent tax year for which returns are due, including the prior tax year if the filing deadline for that year has not yet passed.
If a taxpayer files their return after the due date, they may still be included in the ATL by paying a surcharge, as specified in section 182A of the Income Tax Ordinance. For companies or associations of persons formed after June 30 relevant to the latest tax year, their inclusion in the ATL will be automatic, provided other criteria are met.
The FBR’s amendments aim to ensure greater compliance with tax regulations, but concerns remain about the clarity and accessibility of these changes. The tax authorities are under increasing pressure to ensure that these rules are well understood by both taxpayers and the public, as they could significantly affect those attempting to remain compliant with tax filing deadlines.
