ISLAMABAD: The Federal Board of Revenue (FBR) has proposed harsh enforcement measures against the existing filers of income tax returns to impose penalty of Rs 1,000,000 and freeze bank accounts of filers, who would file incorrect or incomplete returns this year.
Sources told Business Recorder that the FBR has proposed extreme measures against the existing filers to restrain filers (incorrect or incomplete returns) from purchasing immovable properties or vehicles and disconnecting their utilities and impose heavy fines to meet tax collection target of September 2024. The measures have yet to be approved by the competent authorities, sources added.
Leading tax advisers have seriously questioned whether such harsh measures would not be misused and punish compliant taxpayers, who would inadvertently commit mistakes in filing of returns?
Failure to block SIMs of non-filers: Cellular cos face the prospect of heavy penalties
When contacted, leading tax expert Dr Ikram ul Haq said that the said policy measures are good, as people have been abusing the law by filing “Nil” returns and also showing “Nil” assets just to avoid higher rates of withholding tax as non-filers. Just to become filer, they are filing such returns which constitute perjury i.e. wrong statement under oath.
It is alarming that the number of nil filers is increasing due to heavy rates of withholding taxes for non-filers of income tax returns.
Besides, action under section 114(A) of the Income Tax Ordinance, the department can also prosecute such wrong declarants under section 192 of the Income Tax Ordinance the as well, Dr Ikram ul Haq added.
It is learnt that the policy measures have been proposed by FBR Member Inland Revenue (Operations) to strengthen enforcement and address tax non-compliance.
Copyright Business Recorder, 2024
Comments
Comments are closed.