Interpretation of Sec 4-A delays forms' issuance: final income tax return forms for cos, AoPs, individual taxpayers

The issues related to interpretation of income tax surcharge introduced through section 4-A of the Income Tax Ordinance 2001, has caused the prolonged delay in issuance of the final income tax return forms for companies, Association of Persons (AOPs) and individuals for the Tax Year 2011. It has been learnt reliably here on Monday that the FBR has yet not issued the final income tax returns form.
The FBR is finalising the new return form, but submission of information about surcharge for certain categories of taxpayers need to be clarified before issuance of final notification on the new income tax return form. The FBR is also examining whether to add a 'separate annex' for surcharge or not. When contacted, a tax lawyer said it has already been clarified by the FBR that 15 percent surcharge on the amount of payable income tax for the period from March 15, 2011 to June 30, 2011 is applicable on all income of taxpayers whether individual, AOPs, or companies but the FBR functionaries have failed to cater the said levy in the proposed tax return.
The FBR position is also quite unclear about this levy for certain categories of taxpayers. All taxpayers whose business year closes on 30th day of September 2010 and 31st day of December 2010 like sugar industries, some permanent establishment (PE) of non-resident or banking companies, will also submit their tax returns for the Tax Year 2011 but the question of levy at the rate of 15 percent on account of surcharge has yet not been answered due to the reason it is chargeable on the amount of payable income tax for the period March 15, 2011 to June 30, 2011.
There is an inadvertent omission regarding levy of surcharge in both tax returns, while earlier statement of FBR is quite self-speaking: "Federal Board of Revenue (FBR) has said the imposition of 15 percent surcharge on the amount of payable income tax for the period from March 15, 2011 to June 30, 2011 is applicable on all income of taxpayers whether individual, Association of Persons (AOPs), or Companies."
In an official statement on FBR website says: "In order to remove any misconception which may have been caused by a press report appearing in a section of the media, the government wishes to clarify that the imposition of 15 percent surcharge on the amount of payable income tax for the period of March 15, 2011 to June 30, 2011 is applicable on all income tax payers whether individual, Association of Persons (AOPs), or Companies. It is an across-the-board surcharge, levied without exception or discrimination, on all categories of income taxpayers. As such, the promulgated law does not envisage any exemption or special treatment to any category of taxpayers."
As per provisions of Income Tax Ordinance, 2001 all taxpayers whose business year closes on 30th day of September 2010 and 31st day of December 2010 like sugar industry, some PE of non-resident or Banking Companies etc, who are interested to fulfil their legal obligation in filing of income tax returns for Tax Year 2011, can not file the same by using e-FBR portal.
FBR/eFBR has not yet notified/uploaded the format of income tax return for Tax Year 2011. Similarly in case of taxpayers having status of Individual/AOP are also obliged to fulfil their obligation to submit return for the financial years closed on June 30, 2011 but return form for such categories of taxpayers is also absent from the FBR web portal.
It is inevitable to point out that as per law FBR has made it mandatory for certain categories/types of taxpayers to fulfil their legal obligation to file their income tax returns electronically, while till date Tax Return for Tax Year 2011 is not available for electronic filing or manual submission, therefore, persons liable to file returns electronically and willing to file the same now, cannot fulfil their obligation due to failure/deficiency on part of FBR/e-FBR/PRAL.