KARACHI: The Pakistan Tax Bar Association (PTBA) has recommended introducing an online jurisdiction transfer system within the FBR’s IRIS portal. This comes in light of ongoing issues with incorrect tax jurisdiction assignments causing difficulties for taxpayers.

In a letter sent to the chairman FBR, the PTBA acknowledged FBR’s previous efforts to rectify improper jurisdiction allocations for builders, contractors, and companies registered in Karachi, Lahore and Islamabad. However, the process of transferring jurisdictions needs to be faster and more convenient.

“We recommend that the Jurisdiction Tab in the IRIS portal for transfer of jurisdiction be developed so that the taxpayer can file the transfer application online with complete details and reason,” the PTBA said.

The proposed online system would allow taxpayers to submit jurisdiction transfer requests and supporting documents digitally. The Chief Commissioners from the current and correct tax jurisdictions would have 15 days to review and approve the transfer.

If no action is taken within 15 days, the application will automatically be escalated to Member Operations, FBR, for a final decision within another 15 days.

The PTBA stressed that determining the correct tax jurisdiction is an essential right of taxpayers under Article 10A of the Constitution. Without properly established jurisdiction, any proceedings against taxpayers would be considered “null and void.”

An automated and transparent jurisdiction transfer process would ease difficulties for compliant taxpayers, reduce litigation, and improve efficiency according to FBR mandates, per the PTBA.

The tax body urged the FBR to promptly institute the “Jurisdiction Tab” on the IRIS portal, stating it would benefit taxpayers, avoid revenue leakage and uphold FBR’s responsibility towards facilitation.

Copyright Business Recorder, 2024