The Federal Board of Revenue (FBR) has started action against another 52,000 undocumented persons, including those shareholders of blue chip companies having share holding of over and above Rs 300,000, but are operating out of the tax net.
Sources told Business Recorder here on Saturday that the Directorate General of Directorate of Intelligence and Investigation, Inland Revenue, has obtained data from the Central Depository Company (CDC) about the shareholders of big companies like Pakistan State Oil (PSO), Oil and Gas Development Corporation (OGDC), Pakistan Telecommunication Company Limited (PTCL), Unilever and other big multinational companies, etc.
The directorate has identified a large number of shareholders in such big companies, who have holding of above Rs 0.3 million, but have neither obtained the National Tax Number (NTN), nor are filing their income tax returns. The agency is surprised that a large number of persons in Karachi are holders of shares/stocks of big companies, but the FBR's tax record has no information about them.
During the scrutiny of CDC data, the directorate did not touch small cases where the shareholders have low amount of holding of Rs 50,000 or up to the exemption threshold of Rs 300,000, to focus on wealthy persons. According to sources, the FBR has disseminated the information to the field formations about holders of such stocks and shares for bringing them into the documented regime. The whole exercise has been monitored and supervised by Shahid Hussain Asad, Director General, Directorate of Intelligence and Investigation, Inland Revenue.
Sources said that these shareholders have made huge investment, but are not ready to obtain NTN or file returns. The FBR has initiated enforcement action against such persons, who have made huge investment but are operating out of the documented regime.
In other cases, the directorate has also transmitted information about 6,800 companies to the field formations, which have not obtained NTNs and are also not filing returns with the tax department. This is an ongoing exercise against the companies having no tax record with the FBR. Similarly, latest information about 3,500 more cases has been transmitted to Karachi besides profiles of undocumented persons already dispatched to the Regional Tax Office of Karachi.
The latest data showed that over 200 cases have been framed in Peshawar against undocumented persons and income tax demands of over Rs 300 million have been raised against them.
Sources said that profiles of all such wealthy persons are now being maintained by the FBR and such undocumented persons cannot escape from the tax authorities. If such persons would voluntarily declare their income and file returns, they can easily avoid penalty and prosecution under the enforcement provisions of the law. However, if they continue to resist, the FBR will not only impose maximum penalty, but would also initiate prosecution against them.
Sources categorically said that the wealthy persons might have disguised themselves as honest and good citizens, but undocumented persons would be declared as tax evaders and tax dodgers by the FBR. This would create huge embarrassment for them in the public. Apparently, these rich people might be pretending as very honest persons in the society, but the FBR would invoke all harsh provisions against the tax dodgers who are not ready to even obtain NTN despite living lavishly in the society. The non-compliance of undocumented persons would create embarrassing situation for the wealthy persons who are reluctant to come into the documented regime. It has been advised to all such persons to voluntarily come into the tax net to avoid penalty and attachment of their bank accounts by the tax department.
Apparently, these wealthy persons might be satisfied that no one from the tax department can take action against them due to non-availability of data. However, it is a total misconception that the FBR has no authentic information about such undocumented persons. The FBR has already compiled and dispatched the profiles of the undocumented persons to the heads of the Broadening of Tax Base (BTB) Units for enforcement action.
It has been advised to the wealthy persons to voluntarily come forward and file their returns to avoid punishments and embarrassment in the society, sources added. In order to avoid penalty/prosecution, these persons still have a chance to declare their actual income. Once the department would start prosecution proceedings against them, nobody can stop the tax department from sending such non-complaint persons to jail after completion of legal formalities.
Comments
Comments are closed.