The Federal Board of Revenue (FBR) will likely issue intimation letters to around 10,000 unregistered companies and corporate entities, whose electronic data has been obtained from the Securities and Exchange Commission of Pakistan (SECP). Sources told Business Recorder on Monday that the FBR has completed reconciliation of companies data with the SECP.
The data of around 42,000 companies is available in the "NTN Master index of FBR", whereas number of active companies as per SECP record is around 52,000. There is a huge gap of 10,000 companies between the data maintained by the FBR as well as SECP. These companies are registered with the SECP, but their record is not available with the tax department.
The FBR would approach these companies through Regional Tax Offices (RTOs) for allocation of NTNs to them, brining them into the tax net. Once NTNs were allocated to un-registered corporate entities, they would be asked to file income tax returns as per law. According to sources, the board would try to trace these 10,000 companies, as their record is not available with the tax department.
The board is determined to ensure maximum compliance of the corporate sector through electronic filing of income tax and sales tax returns and statements. As a result of e-filing campaign, the electronic filing of income tax returns has now crossed 17,500 returns, which is a historic land mark. In the previous tax years filing of corporate returns stood at around 10,000 to 12,000 in the corresponding periods. Around 22,500 corporate taxpayers have been enrolled with the FBR Web Portal and likely to file the returns in coming weeks.
Presently, around 42,000 companies are on the tax roll and their data is available in the NTN Master index. On the other hand, active companies record of 52,000 companies is available with the SECP. The board would bridge this gap by incorporating data of all active companies in the Master Index. For this purpose, FBR has obtained electronic data from SECP for bring them on the NTN master Index. The board would continue to make systematic efforts for registration of another 10,000 companies with the tax department.
Although the last date of filing the corporate returns has already been expired, but due to electronic filing facility and lenient view of FBR a large number of taxpayers are still filing the corporate returns electronically.
Taxpayers and their tax consultants have found the FBR's e-Filing System at e-FBR Portal as user friendly and convenient tool for discharging their responsibilities of declaration submission. The business community has highly appreciated the 24-Hrs e-Filing facility and Call Centre support provided by FBR to the taxpayers, sources added.