KARACHI: The Karachi Tax Bar Association (KTBA) has formally brought to the attention of the Federal Board of Revenue (FBR) a series of significant functional and procedural issues within the IRIS online portal.
The association emphasizes that these anomalies are creating substantial hurdles for taxpayers and tax professionals, impeding their ability to comply with tax regulations and contradicting the FBR’s stated goals of digitization and ease of doing business.
In a detailed letter sent to the FBR, the KTBA highlighted several specific areas requiring urgent attention and corrective action.
Absence of Application Option for Benevolent and Group Insurance Funds
A major concern raised by the KTBA is the lack of a designated application option within the IRIS portal for funds seeking approval under Clause (57)(3)(iii) of the Second Schedule to the Income Tax Ordinance, 2001. The KTBA pointed out that SRO 212(I)/2005 empowers Commissioners to approve benevolent and group insurance funds, but the IRIS system currently has no section to facilitate such applications.
The association proposed the creation of a dedicated tab under the registration section specifically for these funds, similar to the existing options for Provident, Superannuation, and Gratuity Funds.
The KTBA noted that manual submissions are currently being rejected by Commissioners, leaving applicants in a difficult position without a clear digital pathway.
Inability to Amend Non-Editable Fields in Form 181
Another procedural issue highlighted is the inability of taxpayers to request amendments to non-editable fields within Form 181. While Rule 82(2) of the Income Tax Rules permits Commissioners to approve such changes, the IRIS portal lacks the necessary functionality to accommodate these requests. The KTBA recommended integrating an application mechanism within the registration tab to align the digital system with existing legal provisions and allow for legitimate amendments.
Operational Inefficiencies for Withholding Agents
The KTBA also drew attention to operational inefficiencies faced by withholding agents when generating Payment Slip IDs (PSIDs). The current system does not display detailed particulars, such as names, CNICs, and tax values, for each individual taxpayer linked to a PSID. This lack of transparency complicates the verification process and leads to an increased administrative burden on the Commissioner’s office for rectifying Computerized Payment Receipts (CPRs). The association suggested that IRIS should be updated to provide a comprehensive list of taxpayers associated with each PSID to streamline verification and reduce the need for manual CPR corrections.
Limitations in E-Payment Service for Tax Shortfalls
Limitations in the e-payment service were also flagged, specifically concerning the inability to easily pay tax shortfalls when the original payment amount changes due to revised tax rates. The KTBA proposed the introduction of a “short tax” payment option within the IRIS interface, allowing withholding agents to manually enter the relevant tax section, revenue code, and the specific shortfall amount.
Critical Bug in CPR Download Functionality
Finally, the KTBA reported a critical technical issue affecting both the IRIS and e-FBR systems. Taxpayers are unable to download CPRs for taxes paid under Sections 236C, 236K, and 7E, despite successful bank payments and the CPR numbers being verifiable online. The association urged the FBR to prioritize resolving this technical flaw to ensure taxpayers can access their payment records.
The Karachi Tax Bar Association reaffirmed its support for the FBR’s ongoing digitization efforts but stressed that resolving these functional and procedural anomalies in the IRIS portal is crucial for enhancing transparency, reducing compliance costs for taxpayers, and fostering greater voluntary tax compliance.
