The Federal Board of Revenue has issued 'electronic-warnings' to over and above 100,000 non-filers of income tax returns to delete their names from the "Active Taxpayers List" and they will not be allowed to conduct regular business transactions with the compliant taxpayers.
The FBR on Monday issued stern warning to over 100,000 non-filers including sales tax registered persons, companies, Association of Persons (AOPs), individuals and other categories of taxpayers. The copy of the warnings letters has been communicated to the concerned Large Taxpayer Unit (LTU) and Regional Tax Office (RTO). In most of the cases, warnings have been issued to those National Tax Number (NTN) holders, who failed to file their income tax returns for Tax Year 2012, sources said.
According to the FBR's warning letters to the non-filers, the FBR would not allow them to operate as 'Active Taxpayers' and these non-compliant persons would be declared as 'Inactive' which would stop their whole business transactions for tax purposes. The FBR has also decided to impose heavy penalties as admissible under the law on the non-filers of returns, sources said.
Sources added that under section 181A (Active taxpayers' list) of the Income Tax Ordinance 2001, the Board shall have the power to institute "Active Taxpayers List". The list shall be regulated as may be prescribed, it added. One of the e-warnings issued to the non-filers of returns here on Monday says: the FBR's records indicate that you (NTN holder) have not e-filed your return of Income for Tax Year 2012 which was due on or before October 10, 2012.
As per provisions of section 182 of Income Tax Ordinance 2001, a person not furnishing return of Income on or before due date, exposes himself to penalty under section 182(1)(1) of Income tax Ordinance 2001 which amounts to penalty @ 0.1% of tax payable for each day of default subject to minimum penalty of Rs 5000 and maximum penalty of 25 percent of tax payable. You (non-filer) are also cautioned that Board may delete your name from the active Tax payer as per section 181A of Income Tax ordinance, 2001.
"Tax authorities have also made note of your late/non-filing in FBR's data base. In your own interest, you (non-filer) are requested to immediately file your return of income. In case you (non-filer) have applied for extension of time, on or before the due date, please ignore this letter and file your return of income as soon as possible but not later than extension requested/granted," the FBR added.