The Federal Board of Revenue has not decided yet to issue the provisional list of all compliant and non-compliant taxpayers on its website to meet the criteria set by the Board for becoming eligible for inclusion in "Active Taxpayer List" for carrying out business activities smoothly.
Sources told Business Recorder here on Monday that the FBR had amended Income Tax Rules, 2002 through an SRO.328(I)/2011 to notify procedure of the "Active Taxpayer List" for business community in April 2011. Despite passage of three months, the FBR has not notified the list, which is a major step to distinguish between the compliant and non-compliant taxpayers and also to check the phenomenon of fake and flying invoices.
The FBR can suspend the income tax and sales tax registrations of the non-filers of returns and statements under the "Active Taxpayer List", but provisional list is not available on the FBR website despite legal amendment in the Income Tax Rules, 2002. The FBR was in the process of obtaining input from the business and trade on the "Active Taxpayer List," but the final list has not been notified.
Sources said the FBR will make the provisional list public, containing all compliant and non-compliant taxpayers on its website. The non-compliant persons would be given reason for declaring them as non-compliant and they would be provided an opportunity to improve their status for becoming compliant. The system will tell the registered persons about the reasons for non-compliance and action required to operate as a compliant taxpayers.
The FBR will take no action against the non-compliant persons for at least 30 days and later the FBR will notify the final "Active Taxpayer List" for taking action against non-filers of income tax returns and statements and other violations of the tax laws.
In case of persistent non-compliance, the FBR has obtained the legal backing to suspend the income tax and sales tax registrations of the non-filers of returns and statements under the "Active Taxpayer List".
According to the procedure, the ATL shall be updated to include the compliant and exclude the non-compliant taxpayers, as soon as the legal requirements are met. The registration of the taxpayer removed from the ATL shall be treated as suspended lot for the period of his removal from ATL and such taxpayer shall not be treated as a registered person during the suspension period unless regularised through an order by the respective Commissioner Upon compliance by the defaulter and restoration in the "ATL".
The FBR shall publish Active Taxpayers list, referred to as ATL henceforth, comprising the persons complying with the filing the return of income or statement u/s 114 and 115; filing the wealth statement u/s 116; filing of return u/s 143 and 144; filing the statement of tax deduction u/s 165; deducting the tax at source and depositing it; paying the advance tax; responding to the notice issued by the Commissioner Inland Revenue; any other statement due under the law; and meet the criteria, if any, laid down under the Sales Tax, Federal Excise and Customs for including the taxpayers in the Active Taxpayer's list.
Initially all the compliant taxpayers meeting the following criteria will be included in the ATL: E-filers of return of income or statement u/s 114 and 115 for tax year 2010; e-filers of Quarterly Employer Statements on deductions made u/s 149 of the Ordinance, for the tax year 2010; e-filers of Quarterly Withholding Tax Statement u/s 165 of the Ordinance, for tax year 2010 and meet the criteria laid under Sates Tax, Federal Excise and Customs for including the taxpayers in the Active Taxpayers' List.
Following actions will be taken in advance for informing the taxpayers regarding their non-compliance, namely:- The provisional ATL shall be made available on the FBR web portal 30 days prior to its finalisation. Access to the ATL shall be on case to case basis through the NTN or CNIC of the taxpayer. E-intimations will be sent to the e-Enrolled persons not qualifying the criteria referred to above and 15 days time shall be allowed to ensure compliance and the initial criteria given above, and any change in such criteria shall also be publicised for education and awareness of the taxpayers.
A new taxpayer registered under section 181 of the Ordinance, shall automatically be placed in the ATL, on the day of his registration subject to the condition that no return or statement due on the date of registration is pending to be filed and the compliance as per sub-rule (3), wherever due, has been made.
The non-compliant taxpayers shall be removed from the ATL through the automated System as per following procedure: In case of persons required to file the declarations electronically upon expiry of the due date, the computer system shall send an e-Intimation at the registered e-mail address of the taxpayer informing him about his default and advising him to make the compliance within 15 days time, failing which his name shall be removed from the ATL. After completion of 15 days compliance time and after issuance of the e-Intimation sent through the computer system referred to above, the computer system shall, in case of non-compliance, remove automatically the name of the non-compliant taxpayer from the ATL and in case of compliance after the due date, concurrence of respective Commissioner shall have to be obtained before reinstating the name of the taxpayer in the ATL subject to payment of all outstanding dues.
The non-compliant taxpayers shall be removed from the ATL through the automated system. In case of persons not required to file the declarations electronically, upon expiry of the due date for filing, of returns/statements or any other action due under the taw, the respective Commissioner shall initiate the ATL process through the computer system whereby the computer system shall print Intimation Letter to the non-compliant taxpayer informing him about his default and advising him to show compliance within 15 days, failing which his name shall be removed from the ATL. In case of compliance, the respective Commissioner shall also arrange to feed the return into the computer within seven days and in case of non-compliance and after completion of a period of 15 days of the intimation issued by the computer system referred to above, the respective Commissioner shall arrange to remove the names of the non-compliant taxpayer from the ATL.