Documenting 700,896 rich persons: FBR ready to launch ''Tax Recovery Program''

The Federal Board of Revenue (FBR) is ready to launch ''Tax Recovery Program'' on national level to document 700,896 richest persons including owners of commercial and residential properties across the country. Sources told Business Recorder here on Tuesday that the FBR has finalised the plan to document 700,896 persons into the tax net.
The step-wise FBR''s ''Tax Recovery Program'' covers five major steps to be launched in the coming few days. The whole process of documentation would be completed in four months'' period. The FBR will shortly launch a country-wide massive campaign to give message to the elite class that it is time to come into the tax net, or face legal proceedings.
Under the first step, the FBR is assessing 700,896 potential taxpayers identified by the Nadra, for which data acquisition is under way. Secondly, the FBR will initially issue notices to the potential taxpayers to file their income tax returns based on assets data etc from Nadra. The FBR will convey the message that "we know you own a house, commercial property, or travelled abroad. Kindly file the return, or face action of provisional assessment by the tax department".
The FBR will give a period of 30 days to the rich people to file their due income tax returns. Thirdly, the FBR will start process of provisional assessment under section 122 (c ) of the Income Tax Ordinance 2001 against the non-compliant persons. In case of no response, the FBR will give 60 days period to the concerned person to file his income tax return. If the person fails to respond to notices within 60 days period, the FBR would complete provisional assessment against the person.
Fourthly, the FBR will also initiate recovery proceedings against the rich people under the relevant provisions of the Income Tax Ordinance 2001. Fifthly, the FBR will raise tax demands against the concerned persons taking into account data available with the Nadra.
According to the FBR plan, the whole process of broadening the tax base is expected to be completed in four months'' period. At the same time, the FBR has initiated focus on rental income earners, vehicles owners and electricity consumers. The potential persons would be brought into the tax net by April 30, 2011.