Risk Management System: non-risky taxpayers to be paid ST refund

The Federal Board of Revenue (FBR) will electronically pay sales tax refund to the taxpayers (non-risky) under the Risk Management System (RMS) of the Expeditious Refund System without processing through the Sales Tax Automated Refund Repository System (STARR).
Sources told Business Recorder here on Friday that the FBR has finalised details of two categories of taxpayers--green and risky taxpayers--for the purpose of sales tax refund. The risky taxpayers have been identified by the FBR based on their tax profiles. The sales tax refund would not be issued to those taxpayers where cases would be rejected by the RMS of the Expeditious Refund System.
The cases cleared by the RMS would be processed for immediate payment of refund under green channel facility. However, cases of risky taxpayers would be subjected to detailed scrutiny under the normal system of verification through STARR. The Risk Management System has compiled data on the basis of e-filing returns of the taxpayers.
The FBR has identified those risky taxpayers who would not be eligible for obtaining refunds under the Expeditious Refund System. The difference between the risky or non-risky has been made on the basis of history of the taxpayers, sales/purchase data, behaviour of the suppliers and parameters devised by the FBR for declaring someone risky or not. In many cases, taxpayers are filing returns, but persistently declaring losses or not showing any profit. In other cases, sales tax registration has been obtained, but the taxpayer is not showing any business activity.
In the first phase, electronic payment of refund would be made only to those manufacturers-cum-exporters which would be declared as 'Active Taxpayers' by the board. The refund would be allowed to the registered manufacturers-cum-exporters of Regional Tax Office (RTO), Lahore from tax period April, 2010. From tax period July, 2010 all registered manufacturers-cum-exporters of Large Taxpayer Units (LTUs) and RTOs would be allowed under the Expeditious Refund System.
The refunds would be allowed to the registered manufacturers-cum-exporters of RTO, Lahore, from tax period April, 2010. All registered manufacturer-cum-exporters of other RTOs/LTUs will be allowed refund under this rule from tax period July, 2010.
The refunds shall be allowed to the 'Active Taxpayers' at the time of processing by the IT System of FBR, as per Active Taxpayers List displayed at FBR website. The registered persons claiming refund under this rule will electronically submit refund claim in requisite data in 'RCPS format' through FBR Web-Portal by using the User-ID, password and pin code allotted to them at the time of e-Enrolment.
The registered person claiming refund shall maintain and keep all paper documents relating to the refund claim, such as invoices, credit notes, debit notes, goods declarations, bank credit advice, etc, in his office instead of submitting to the concerned Regional Tax Office or Large Taxpayers Unit.