Return filings hit record 1.87mln till March-end

KARACHI: Number of returns filed for the tax year 2018 has exceeded 1.87 million mark as date extension and FBR’s measures are prompting taxpayers to declare assets and incomes ahead of the month-end deadline, officials said on Friday.

The officials of the Federal Board of Revenue (FBR) said actions and date extension resulted in a record number of annual income tax returns till March 30. The FBR is estimating above two million income tax returns for the tax year 2018 till the filing deadline of April 30, 2019. Return filing is expected to go beyond the point as the government is planning a tax amnesty to be introduced in the mid of April.

The officials said the returns filing date would also be extended till the end of amnesty scheme, which may continue for two months. The officials said total number of return filers as shown on the active taxpayers list (ATL) 2018 are 1,871,116. The FBR received 1.84 million income tax returns for the tax year 2017.

The officials attributed the record filing of income tax returns to crackdown initiated by the FBR early this year against tax evaders and non-compliant taxpayers. “FBR rarely took harsh action. It has arrested large number of tax evaders,” an official said, requesting anonymity. The FBR arrested nine people during January to March 2019 for tax evasion besides it also attached 78 properties, 46 motor vehicles and 4,400 bank accounts for taxes recovery. People were later directed to file income tax returns with fine and penalties.

The last date for filing income return for tax year 2018 originally expired on December 15, 2018 for salary individuals and business individuals and December 31, 2018 for companies. Late tax returns filers were disqualified from ATL and availing benefits of reduced rates of withholding taxes. Only 1.59 million income tax returns were filed for the tax year 2018 as per the ATL on March 1, 2019. Stakeholders were eager to have an option to file their returns to avoid exclusion from ATL and avail benefits.

The FBR extended the last date for filing income tax returns up to March 31, which was further extended to April 30, 2019, to facilitate people who want to come into the tax net. Therefore, the FBR received 0.28 million additional returns between March 15 and 30.