ISLAMABAD: Sindh High Court (SHC) has directed the Federal Board of Revenue (FBR) to ensure that sales tax returns of companies for September 2024 are filed without submission of affidavits by their chief financial officers.

According to the SHC order issued on Friday, till the next date of the hearing, the respondent (FBR) shall ensure that the sales tax returns of the petitioners for September 2024 are facilitated and filed without the filing of an affidavit in question.

The SHC order stated that in all those petitions the grievance of the petitioners (companies) is that they have been requested to swear and sign an affidavit along with filing of sales tax returns.

Tax returns filed by CFOs: FBR lifts affidavit filing condition

The lawyers on the behalf of petitioners submitted before the court that prescribing such affidavit is beyond the rules and provisions of the Sales Tax Act 1990 whereas petitioners have been asked to affirm and take responsibility of the acts of their suppliers, which at the time of filing of sales tax returns, they cannot do.

However, during the hearing, councils have placed on record a press release issued by the FBR on October 17, 2024 and submit that for the present purposes the FBR has dispensed with filing of affidavit insofar as sales tax returns for September 2024 are concerned.

Let notice be issued to the FBR as well as Deputy Attorney General for November 1, 2024, SHC said.

In its press release, the FBR had said on request of trade bodies and in order to take all stakeholders in confidence, it has been decided that:

a) The filing of affidavit will not be required for return filing for the tax period September, 2024 to be filed in October, 2024.

b) FBR will receive alternative proposals from the stakeholders till 31st of October to curb menace of falsified sales tax return.

c) The Board may modify the particulars of affidavit where valid concerns of stakeholders do exist.

However, it is again emphasized that no new legal obligation arises out of the “affidavit” and that the registered taxpayers should always be cognizant of the fact that declaration of fake or flying invoices and suppression of sale is a cognizable offence under the sales tax law and all registered persons need to exercise extreme caution while filing returns in order to avoid pecuniary and criminal liabilities under section 33 of the Sales Tax Act, 1990, the FBR warned companies.

Copyright Business Recorder, 2024