ISLAMABAD: The Federal Board of Revenue (FBR) is still having high hopes on the possible outcome of voluntary tax compliance scheme (VTCS) due to highly valuable and beneficial aspects for the trading community.
“Actually, the trading communities could not realize the beneficial aspects of VTCS, however, a significant level of realization is emerging among the traders’ representative bodies,” a source at the FBR told Customs Today.
The source said that traders who had already filed their returns for Tax Year 2015 could avail VTCS subject to submission of revised return without the requirement of approval of the commissioner.
In this regard, the source named the most valuable aspect of the VTCS saying that traders would not be entitled to take credit of tax deducted or collected at source in any succeeding year. Refund due for any preceding year cannot be adjusted against the tax payable under this scheme for filing of wealth statement on taxable income up to Rs1 million will not be required
The source further said that traders availing VTCS would not be subjected to audit and not be required to withhold tax on the purchases made by them. Traders are entitled to get the benefit of imputable income by paying 1% tax on the difference of imputable income and the taxable income declared. VTCS is a scheme for simplified procedure of filing of income tax returns for traders and is devised for the purpose of broadening of the tax base.
Moreover, the source while counting the benefits of VTCS for traders said that the benefits of new procedure was to enhance tax compliance, induce truthful declaration of income, expand the tax base, discourage tax evasion, raise tax revenues, reduce cost of collection and minimize contact between tax officials and taxpayers, which had been a significant obstacle in tax compliance.
FBR still binds high hopes with VTCS due to realization about beneficial aspects of scheme in business community
ISLAMABAD: The Federal Board of Revenue (FBR) is still having high hopes with the possible outcome of voluntary tax compliance scheme (VTCS) due to highly valuable and beneficial aspects for the trading community.
“Actually, the trading communities could not realize the beneficial aspects of VTCS, however, a significant level of realization is emerging among the traders’ representative bodies” a well-placed source at FBR told Customs Today.
The source said that traders who had already filed their returns for Tax Year 2015 could avail VTCS subject to submission of revised return without the requirement of approval of the commissioner.
In this regard, the source named the most valuable aspect of the VTCS saying that traders would not be entitled to take credit of tax deducted or collected at source in any succeeding year. Refund due for any preceding year cannot be adjusted against the tax payable under this scheme for filing of wealth statement on taxable income up to Rs1 million will not be required
The source further said that traders availing VTCS would not be subjected to audit and not be required to withhold tax on the purchases made by them. Traders are entitled to get the benefit of imputable income by paying 1% tax on the difference of imputable income and the taxable income declared. VTCS is a scheme for simplified procedure of filing of income tax returns for traders and is devised for the purpose of broadening of the tax base.
Moreover, the source while counting the benefits of VTCS for traders said that the benefits of new procedure was to enhance tax compliance, induce truthful declaration of income, expand the tax base, discourage tax evasion, raise tax revenues, reduce cost of collection and minimize contact between tax officials and taxpayers, which had been a significant obstacle in tax compliance.
