Taxpayers advised updating profile to avoid the penalty, exclusion from ATL
KARACHI: Taxpayers are suggested to update their profile by March thirty-one, 2021 to avoid penalty and exclusion from Active Taxpayers List (ATL).
Sources within the Federal Board of Revenue (FBR) aforesaid that the last date for the change in the profile was day, 2020. However, this date was extended by the FBR up to March thirty-one, 2021 considering the issues round-faced by the taxpayers.
Through the Finance Act, 2020 a locality 114A was inserted to revenue enhancement Ordinance, 2001 concerning taxpayer’s profile.
As per the supply, following person ar needed to update their profile on IRIS – the official internet portal of the FBR:
a. one and all applying for registration underneath Section 181;
b. one and all derivation financial gain guilty to tax underneath the pinnacle ‘income from business’;
c. one and all whose financial gain is subject to final taxation;
d. any non-profit organization as outlined in clause (36) of Section 2;
e. any trust or welfare institution; or
f. the other person prescribed by the FBR.
Following details are needed to change the taxpayer’s profile:
i. bank accounts;
ii. utility connections;
iii. business premises, as well as all producing, storage or stores, operated or hired by the taxpayer;
iv. kinds of businesses; and
v. such alternative info as could also be prescribed.
The FBR issued a close clarification on the problem stating that complexness of coming back forms is AN embodiment of the complexness of jurisprudence. “Nevertheless, there's a dire ought to modify come back forms while not compromising on the knowledge needed to verify the accuracy of the declared version.”
The FBR aforesaid that rather than endeavouring to get all the relevant info within the revenue enhancement come back, a replacement section has been added whereby payers’ profile could also be prescribed to capture knowledge relevant to the taxpayer.
“Person United Nations agency is already registered before Sept thirty, 2020 and ar derivation business financial gain or financial gain subject to final taxation, trust, welfare establishments, non-profit organizations and such alternative persons prescribed by the board ar projected to file a profile on or before the day, 2020 (this has been extended up to March thirty-one, 2021).”
The FBR additional aforesaid that persons United Nations agency get their registration when Sept thirty, 2020 are projected to furnish such a profile inside ninety days of registration. just in case of any modification in particulars of knowledge, such persons shall update their profile inside ninety days of the modification in particulars.
“The profile contains info relevant to financial gain concerning bank accounts, utility connections, business premises as well as all producing, storage or stores operated or hired by the payer, kinds of businesses and such alternative info as could also be prescribed by the board.”
The FBR said: “If someone fails to furnish or update a taxpayer’s profile inside the maturity date or period of time as extended by the FBR underneath Section 214A of the Ordinance, such person shall not be enclosed within the active taxpayers’ list for the newest tax year ending before the aforementioned maturity date or extended date.”
However, upon filing or change the profile, such persons shall be allowed to be placed on the ATL upon payment of a surcharge that is projected to be Rs20,000 within the case of an organization, Rs10,000 within the case of AN association of persons (AOPs) and Rs1,000 within the case of a person.
“Further, a penalty for non-filing or not change of profile is additionally projected at the speed of Rs2,500 for every day of default subject to a minimum penalty of Rs10,000,” the FBR additional.
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