FBR sends notices to 223 MPs for not filing returns

ISLAMABAD: In a major development, the Federal Board of Revenue (FBR) has sent tax notices to 223 parliamentarians for non-filing their income tax returns in 2018 and asked them to file their returns within 30 days.

“Yes, we have issued tax notices to 56 parliamentarians for tax year 2017 and 223 for tax year 2018 for non-filing of their tax returns under section 114 of Income Tax Ordinance 2001,” top FBR official confirmed to The News here on Thursday night.

The official said that the non-filers list included members of National Assembly, Senate and four provincial assemblies. Under the law, the parliamentarians were asked to file their returns in 30 days. Now the FBR is empowered to impose penalty and in case of non-filing after two notices, ex-party assessment could be done to generate tax demand and recover due amount through attachment of bank accounts.

According to the Income Tax Ordinance 2001 under section 114, the following persons are required to furnish income return for a tax year, namely:– 1 [(a) every company;] 2 [(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year; 3 [or]] 4 [(ac) any non-profit organisation as defined in clause (36) of section 2; 5 [ ] ] 6 [(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;] 7 [(b) any person not covered by clause 8 [(a), (ab), (ac) or (ad)] who,— has been charged to tax in respect of any of the two preceding tax years; (ii) claims a loss carried forward under this Ordinance for a tax year; (iii) owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory1 2 [(iv) owns immovable property with a land area of five hundred square yards or more located in a rating area;] 3 [(v) owns a flat having covered area of two thousand square feet or more located in a rating area;] 4 [(vi) owns a motor vehicle having engine capacity above 1000cc; 5 [(vii) has obtained National Tax Number [ or] ] [(viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees [five hundred thousand] 10[; 11[ ] ] 12[(ix) is 13[a resident person] registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan 1 [; or] 2 [(x) every resident person being an individual required to file foreign income and assets statement under section 116A.]

(1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees 4 [four hundred thousand] in a tax year is also required to furnish return of income from the tax year.] [(2) A return of income - (a) shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed; (b) shall fully state all the relevant particulars or information as specified in the form of return, including a declaration of the records kept by the taxpayer; 6 [ ] (c) shall be signed by the person, being an individual, or the person’s representative where section 172 applies (8 [(d) shall be accompanied with evidence of payment of due tax as per return of income; 9 [ ] 10[(e) shall be accompanied with a wealth statement as required under section 116 and shall be accompanied with a foreign income and assets statement as required under section 116A.