Trial Registration Numbers: senior tax officials to conduct assessments

The Federal Board of Revenue has decided to empower the senior income tax officials to conduct assessments on the basis of Trial Registration Numbers (TRNs) being allocated to the compulsorily registered new taxpayers. The TR Numbers would be issued to those persons, who would fail to respond to the notices of the income tax department for registration purposes.
The FBR has proposed amendment in the Income Tax Rules through an SRO issued here on Wednesday. According to the proposed amendment, the Commissioner having jurisdiction over a case may register a person as a taxpayer where he is satisfied that the income of the person is taxable and is required to file a return of income under section 114 of the Income Tax Ordinance 2001.
The Commissioner shall issue a letter to the taxpayer under subsection(2) of section 181 to submit an application for registration prescribed under rule 80 along with documents specified therein within a reasonable time given in the said letter. In case of compliance NTN certificate shall be issued accordingly.
In case of failure of the taxpayer to comply with the letter issued under sub-section (2) of section 181, the Commissioner shall register the taxpayer on a TR Number for which a serially numbered Trial Register shall be maintained by the Commissioner.
The Trial Register shall contain the basic information of the taxpayer like name of the person or business, available address, CNIC, nature of income generating activity and any other information regarded useful by the Commissioner.
In such case, statutory notices shall be issued for assessment of income or other legal obligation of the taxpayer under the Ordinance on TR Number. Provided that before allotment of Trial Registration Number the Commissioner shall verify and match the particulars of the taxpayer from the NTN Master Index to avoid duplication of registration, proposed rules added.
Tax experts told Business Recorder on Wednesday that the concept of TR Numbers is not new in the income tax law. The trial numbers had been issued in the past under old income tax laws and the General Registration Entry (GRE) numbers were issued to the taxpayers under the repealed income tax law of 1979.
Later, under the old Income Tax Act of 1992, there was a provision for the income tax officers to issue the trial numbers to the new taxpayers for assessment purposes. On the basis of these trial numbers, income tax assessments were completed in the past.Now, it seemed that the old provision of the income tax law has been restored for allocation of TR Numbers to the non-compliant taxpayers. The NTN is necessary for carrying out income tax assessment of the registered units. The issuance of TR numbers would enable the department to conduct such assessments.