ISLAMABAD: Securities and Exchange Commission of Pakistan revealed that more than 4600 companies have not filed income tax report while they are still doing business. By avoiding the procedure of filing income tax returns they are cheating the tax authorities.
SECP highlights the need to strengthen the enforcement wing of FBR to counter these cheating cases and catch these tax evaders. SCEP official told Customs today that out of 7444 companies whose record was checked, 4641 filed their annual returns with SECP but did not filed their income tax returns with FBR till 5 January. Their filing with SECP shows that these companies are still doing business.
The SECP conducted the exercise in response to a query of the FBR. The tax authorities had apprised the SECP about the companies that had satisfied compliance requirements but had not filed tax returns with the FBR. The FBR wanted to confirm their filing status with the SECP for 2014.
The FBR had shared a list of 9,721 companies with the SECP on January 5. These companies did not e-file income tax returns as of January 5, 2015, but had filed tax returns for the tax year 2013. The SECP carried out a comprehensive exercise to check the status of these companies through its online database. It has so far examined the status of 7,444 companies from the provided list.
It emerged that about 62% of companies, out of 7,444 companies, have filed their annual returns with the SECP in 2014. The lists of 4,641 compliant and 2,803 non-compliant companies have been shared with the FBR, said the SECP.
It added the status of the remaining 2,277 companies is being checked manually as these companies might not have filed their returns by using the online facility or might not be registered as companies with the SECP.
While talking to Customs Today FBR Chairman Tariq Bajwa said that the tax machinery has already initiated action against these companies. He said notices are being served to non-filer companies and their owners will be taken to task. Bajwa said that as a punitive measure, the FBR would withdraw their sales tax registration, which will make it difficult for these companies to do business.
In order to catch tax evaders, the government also wants to include tax evasion as a money-laundering crime but it is facing resistance from parliamentarians.
