Karachi Tax Bar Association (KTBA) has requested the Federal Bureau of Revenue (FBR) to extend the date of filing of returns till December 31, 2015 to facilitate taxpayers at maximum level. Highlighting the problems being faced by taxpayers in filing returns, the KTBA in its letter sent to the FBR chairman, stated that the enrolment of non-resident Pakistanis could not be done as they did not have registered local mobile numbers.
Although income tax returns, as per law, could be revised within 60 days of filing without seeking approval from the commissioner, the system did not allow for revision of Income Tax Return under section 114(6) of the Income Tax Ordinance 2001, creating immense difficulties for the taxpayers, it added. The KTBA also pointed out that the 'Forget Password' option in the IRIS system was not working properly as it neither allowed enrolment nor retrieved the password.
Besides, the system does not accept change in name and in some cases, name in CNIC and NTN does not match and taxpayers cannot correct the name as per CNIC and thus face problems in customs and other relevant departments. It further stated: "AOP and company - password/login issue is cumbersome and problematic and the system was running at a snail's pace for last couple of days during filing of returns. All the returns, irrespective of limit of income, are required to file wealth statement and every taxpayer showing business income from any source, irrespective of quantum of income, are required to prepare balance sheet.
This is the first tax year in which all the taxpayers, who have not filed wealth statement and balance sheet in the past, are required to file wealth statement and balance sheet and without these documents, the returns of business income cases cannot be filed.
Collecting information, details and documents for preparing wealth statement of a taxpayer, who has not filed wealth statement and balance sheet in the past, is not only a cumbersome exercise but also consumes much time of a tax practitioner. Moreover, all the tax practitioners were busy in filing withholding tax statements as it could not be e-filed due to technical problems and for which FBR had extended the date thrice. Apart from routine proceeding, tax practitioners were also preoccupied with the work required for conducting audit proceedings of the cases, selected for audit of income tax, sales tax and FED, the KTBA's letter added.