Tax authorities asked to improve 'Nexus'

The income tax department has asked the tax authorities to improve the computer programme "Nexus" for searching the new taxpayers and broadening the tax base in 2005-2006. The CBR has termed "Nexus" as a major tool for brining the prospective taxpayers within the tax-net using data from various sources including cars manufacturers and securities and exchange commission of Pakistan (SECP).
Sources told this correspondent on Tuesday that the income tax department has given some viable suggestions for updating the new system to increase the number of taxpayers.
The preliminary analysis of the system showed that the "Nexus" does not contain updated database required for broadening of the tax-base. Latest data of income tax returns for the 'tax year 2004' is still not updated on "Nexus". Income tax department has provided the data of infraction cases to the Pakistan Automation Revenue Limited (PARL), but it has not been updated on the database.
"Nexus" does not provide any assistance in determining the non-filers of income tax returns and monitoring required at various stages by the commissioners of income tax.
The income tax department has provided latest data on vehicles, mobile phones, Pakistan telecommunication company limited (PTCL), SECP, Sui Gas, Wapda, KESC, data from banks regarding profits of account holders and data of buyers of new cars from the manufacturers of vehicles to the PARL. But this data is not available on the "Nexus" system.
The department further pointed out that all the features of integrated tax information tracker system have not been incorporated in "Nexus".
The customs import data available with the "Nexus" does not seem to be reliable because in case of import of an item the duties and taxes collected were many times more than the import value of goods.
"Nexus" need to be user-friendly so that all available data in the system should be transformed into information for use of tax authorities, by clicking on the keyboard through automatic internal cross reference based on the available identification, income tax department maintained. It seems that the existing status of "Nexus" will not serve the purpose of the income tax department to broaden the tax-base. For this purpose, the data available with PARL should be made compatible with the "Nexus".