ISLAMABAD: In a bid to achieve overall objectives of broadening the tax base, the Tax Reforms Commission (TRC) has proposed ‘spot assessment’ of unregistered or new taxpayers to bring them into tax net.
The idea of “spot assessment” was discussed during the last meeting of TRC, which was held by the Federal Board of Revenue (FBR) . TRIC discussed idea of “spot assessment” of unregistered or new taxpayers with right to file an appeal after payment of 50 percent of the tax demand raised against them by the FBR.
The FBR Member (Legal) argued that negligible tax returns were filed in response to FBR notices, which necessitate that the provision of “spot assessment” should be undertaken with right to file an appeal after payment of 50 percent of the tax demand. Tax authorities argued that capturing and utilization of data related to property could prove to be of great benefit.
The FBR has also started a new exercise in Karachi to register potential taxpayers on the basis of TR (Temporary Registration) numbers for which legal cover has been provided under the law. In Karachi an initiative was made to book new taxpayers on the basis of TR (Temporary Registration) number and necessary amendment in the relevant rule was also made by the policy wing of FBR to provide legal cover to this exercise.
