FBR collecting data of non-filers: de-registration of non-operational business houses in view

The Federal Board of Revenue (FBR) is collecting data of non-operational companies and business establishments for their de-registrations with the Sales Tax Department. Sources told Business Recorder on Monday that the FBR had chalked out an effective strategy to de-register non-operational units in all major cities.
The FBR asked all collectors of sales tax that the data of consecutive non-filers be examined to identify the closed business units for de-registration. Secondly, the collectors would advise the registered persons to prefer the electronic filing of returns and the taxpayers should be facilitated. Thirdly, the collectors would also take prompt legal action against the non-filers where revenue stakes are high.
Fourthly, the collectors would get the data of consecutive non-filers sifted by November 15, 2008 for further actions of de-registration under the law. Fifthly, the collectors of sales tax would also block sales tax invoices of non-filers of sales tax returns.
Sources said that the board had decided to de-register chronic non-filers of sales tax returns, who were not carrying out any business transactions. These businessmen are not carrying out any kind of business activity, but still registered with the department. If the registered person has not committed tax fraud or claimed adjustments against sales tax invoices, such non-filers would be eligible for de-registration.
However, the status of non-filers of sales tax returns would be checked from their declarations made with the Income Tax Department. It would ascertain whether the non-filers of sales tax returns have filed income tax returns. The exercise would be instrumental in detection of any kind of discrepancy in the data available with the sales tax/income tax departments.
Presently, a registered person not filing sales tax returns for the last six months is liable to be de-registration, but the law is not being practically enforced. Now, the sales tax law would be enforced to ensure de-registration of all non-filers.