ISLAMABAD: In response to 154, 874 notices issued by the Federal Board of Revenue (FBR) to potential taxpayers, some 3,190 new taxpayers have filed returns on the first week of January.
“Provisional assessments in case where the persons did not respond to the notice have been framed in more than 35879 cases,” a well-placed source at the FBR told this scribe here the other day, saying that as tax demand of Rs 18.56 (b) had been raised in such cases. Responding to a question about new tax payers’ registration in last 12 months, the source said that in view of importance of the matter a fresh initiative to expand the tax net had been launched by the government in previous fiscal year (FY-2013-14).
“This exercise makes use of data quantifiable economic activities of significant value that are indicative of significant asset creative or consumption expenditure by persons not on tax roll,” the source said, adding that a National Data Warehouse was created in FBR for this purpose. The source said that Data Warehouse primarily included the data collected through third party sources such as motor vehicle registering authorities, educational institutions, CVT collected by FBR and provincial governments on purchase of immobile property, electricity, distribution companies, automobile manufacturing companies and withholding tax statements.
“Based on this data base notices are being issued. Potential taxpayers who are not on the FBR’s roll are being pursued through Directorate General of Broadening Tax Base. Notices filing of Returns were delivered to such,” the source observed. Besides above the source said that FBR assigned this task to Regional Tax Officer for notices to be issued under section 114 of the filing of Income Tax Returns during Fiscal year 2014-15, consequently, 54789 notices have been issued by the RTOs so far.
“Furthermore, all the TROs have been directed by the FBR to maintain computerised stock register for all potential taxpayers (both filers & non filers),” the source observed, adding that FBR had also sought information form National Database and Registration Authority (NADRA) regarding persons who had declared themselves as businessmen/traders/ industrialists in column 22 & 23 of CNIC form submitted with NADRA.
The source said that the new policy measures taken through Finance Act, 2014 to broaden the ax base include new regime wherein different rate of adjustable withholding of income Tax for income tax returns fillers and non filers on certain transactions were introduced.
“This included sale and purchase of immoveable property, purchase, registration and transfer of ownership of motor vehicle, cash withdrawal from banks and payments of profit on debt and dividend income,” the source said, adding that higher rate of tax for non filers would not only prod non filers to file returns and declare their income from all sources, but also would provide database to FBR for identification of potential taxpayers to be pursued for broadening of tax base.
