A legal question has been raised whether Federal Board of Revenue (FBR) is timely placing names of taxpayers/traders on Active Taxpayer List (ATL) where acknowledgement of the returns filed under Voluntary Tax Compliance Scheme (VTCS) has been received.
Tax experts told Business Recorder here on Friday that the government had committed that the names of the traders, who would avail the scheme, would be place within 24 hours of the filing of returns. Through income tax circular, the FBR had specified that the acknowledgement of the returns filed under Voluntary Tax Compliance Scheme (VTCS) would automatically place new taxpayers/traders on Active Taxpayer List (ATL) within seven days after filing of return.
The question arises that whether all traders, who have availed the scheme, are now active taxpayers and their names are reflected on the ATL or not. If the names of compliant traders are not available on the ATL, then the Board should immediately remove the flaw in the scheme, tax experts said.
After receiving acknowledgement of the income tax returns filed under VTCS whether FBR is timely placing names of such traders on Active Taxpayer List (ATL), a legal proposition has been raised for clarification at FBR's end. The FBR circular said that the new taxpayer trader for tax year 2015 shall pay one percent tax only on the declared working capital, which shall not exceed Rs 50 million, and furnish a simplified one page income tax return supported by proof of tax payment and copy of CNIC at the facilitation desk of concerned Regional Tax Office. Acknowledgement of the return would automatically place new taxpayer trader on ATL within seven days after filing of return.
For tax year 2016, the trader shall declare at least three times of turnover on working capital declared in tax year 20 I5 and pay turnover tax as per rule 4 of Part I of the Ninth Schedule. Trader shall furnish on or before due date, a simplified one page return supported by proof of lax payment and copy of CNIC at the facilitation desk of concerned Regional Tax Office. Acknowledgement of the return would automatically place new taxpayer trader on ATL within seven days after filing of return.
For the tax year 201 7 the new taxpayer trader shall pay 25% tax over and above the tax paid in tax year 2016. Trader shall furnish on or before due date a simplified one page return supported by proof of tax payment and copy of CNIC at the facilitation desk of concerned Regional Tax Office Acknowledgement of the return would automatically place new taxpayer trader on ATL within seven days after filing of return, it said.
For the tax year 2018 the new taxpayer trader shall pay 25% tax over and above the tax paid in tax year 2017. Trader shall furnish on or before due date a simplified one page return supported by proof of tax payment and copy of CNIC at the facilitation desk of concerned Regional Tax Office. Acknowledgement of the return would automatically place new taxpayer trader on ATL within seven days after filing of return, FBR added.