FBR blamed for delaying annual return filing

KARACHI: Tax experts on Monday attributed the delay in returns filing from taxpayers to the issuance of return and wealth statement forms by the Federal Board of Revenue (FBR) on the verge of deadline.

Tax experts said the FBR finalised the return form on August 17, which was to be issued on July 1. “Many people are performing Hajj and there are Eid holidays. So it will be impossible for them to file returns by August 31,” said Ali Rahim, ex-President of Karachi Tax Bar Association.

Under the income tax law, the last date for filing annual tax returns by salaried individuals is August 31 and September 30 for business individuals.

The FBR issued draft of return form on July 13 and after taking inputs from stakeholders it was finalised by August 17 leaving only 14 days for salaried individuals to file their returns and wealth statements.

“There is need of two months for filing of returns by salaried persons and three months for business individuals,” Muhammad Zubair, general secretary of Pakistan Tax Bar Association said.

Zubair said incompetence of the FBR caused the delayed issuance of return forms, which would lead to extension in time limit. If it is assumed that salaried individuals are half of the total filers of 1.5 million. “Then, it is very difficult even for FBR’s online service to take around 0.75 million returns in just 4-5 days,” he added. Considering the delayed issuance, the last date for salaried individuals should be November 17.

The tax practitioners and experts said return filing for the tax year 2018 will be higher than the past years due to several conditions imposed in the last budget and determination of the new government to broaden the tax base.

Rehmatullah Khan Wazir, ex-FBR Member Inland Revenue said as the new government assured protection to tax money and also showed determination of broadening tax base the filing of returns would be higher than the past years.

Rahim said the FBR should focus on hassle free online service considering the rise in returns filing. He said the FBR should remove conditions for returns filing such as late filers would not find place in active taxpayers list. Mohammad Zubair said around 50,000 individuals, who availed amnesty, would file their annual returns for tax year 2018. Zubair urged the FBR to reasonably extend time for return filing instead of creating panic on the last day.