ISLAMABAD: Federal Board of Revenue (FBR) is mulling to make Universal Self Assessment Scheme (USAS) conditional to keep a check on its ‘misuse’.
Shahid Hussain Asad, Senior Member Policy Inland Revenue and official spokesperson for FBR, talking to media further said that the revenue authority is also improving documentation, by linking self-assessment declarations with certain conditions, adding that the USAS is not successful in the country.
He said that the old Income Tax Ordinance of 1979 has laid down conditions for availing the facility of self assessment, adding that the FBR is considering introducing certain conditions in the USAS on the pattern of old scheme specified in the repealed Ordinance.
“At present, we are following the USAS under which the moment a person files a return, it becomes an assessment order, whether high or low tax paid as compared to previous year. Such kind of self-assessment schemes are successful only in those countries where 100 percent economy are documented,” he added.
Shahid said that under the old Income Tax Ordinance, self-assessment scheme was allowed after fulfilment of certain conditions. On the same pattern, the FBR is likely to make existing USAS conditional to ensure proper documentation of economy, he claimed.
The Senior Member Tax Policy said that as far as broadening of tax base is concerned, the FBR is pro-actively working to expand the tax base. “Rather we are going aggressively against the un-registered persons. The FBR has served notices to over 320,000 potential tax payers and 64,000 persons have filed their returns. The FBR has passed orders in 51,000 cases. The FBR has collected Rs590 million as tax from the new taxpayers under the ongoing drive of documentation. In 414 cases tax department has made recovery of tax through attachments whereas warrants of arrests have been issued in 470 cases. A total of 210 vehicles have also been attached by the tax department for recovery of due amount of tax from defaulters. In certain cases, stay orders have been obtained by the persons facing tax proceedings,” he informed the media.
