FBR to issue notices afresh to potential taxpayers

KARACHI: The Federal Board of Revenue (FBR) would issue notices afresh to potential taxpayers, who were identified under broadening of tax base (BTB), as all proceedings have been stopped due to the ongoing lockdown, sources said on Wednesday.

Sources in Regional Tax Office (RTO)-II Karachi said that prior to lockdown hundreds of notices were sent to potential taxpayers under BTB exercise. “However, legal proceedings in such cases were halted after the lockdown was imposed owing to the outbreak of coronavirus,” an official said.

The coronavirus pandemic has also affected the country and in order to prevent the spread, the authorities resorted to lockdown across the country.

The Sindh government was first to impose lockdown from March 23, 2020 which resulted in partial halt of trade and commercial activities. Working hours have been slashed in both government and private offices, while staff strength has also been reduced to half.

On the other hand the persons who received the notices were unable to make compliance due to difficulties to reach tax offices, the official added.

The RTO-II Karachi issued a large number of notices to individuals engaged in certain sectors, who have taxable income but were not on the tax net. Since the notices issued had been time barred therefore fresh notices would be issued without imposing any fine or penalty on potential taxpayers for non-compliance.

Sources said the tax office early in March issued notices to leading hospitals for obtaining records of doctors and medical practitioners.

The tax office had sought information regarding Computerized National Identity Cards (CNICs) of doctors employed or providing consultancy services.

Officials said RTO-II Karachi had launched drive a year ago against professionals who were making huge money but remained outside the tax net.

The hospitals are withholding agents, and under Section 165 of Income Tax Ordinance 2001 these health centres were required to provide details of tax deductions and information of persons including name, CNIC, addresses etc.

Besides, the tax authorities also issued notices to doctors running their private clinics and earning huge amount.

The RTO-II Karachi identified a large number of doctors who had travelled abroad, had bank accounts, purchased motor vehicles, and owned immovable properties, but were not filing their annual income tax returns.

Sources said the tax office also issued notices to such medical practitioners running private clinics for concealment of income and tax evasion.

They said that the tax office also issued notices to persons engaged in business of personal care, beauty parlour, educational institutions, and other professions.