450 Lahoreites assessed for Rs 225 million tax

Directorate General of Intelligence and Investigation, Inland Revenue has made over 450 provisional assessments of wealthy Lahoreites, raising income tax demand of over Rs 225 million, which reflects stern action against un-documented persons has been initiated.
Sources told Business Recorder here on Tuesday that the Regional Tax Office Lahore has reported to the Shahid Hussain Asad Director General, Directorate of Intelligence and Investigation, IR about the latest action taken in Lahore against the un-documented persons. Thousands of provisional assessments would be completed in May 2011 against wealthy persons operating in the un-documented regime.
Tax authorities in Lahore have passed provisional assessment orders against over 450 documented-persons including owners of new cars, property, frequent travellers abroad and bank account holders. These persons have not filed their income tax returns in response to notices under section 114 of the Income Tax Ordinance 2001. After providing them ample opportunity to file returns, the department has served notices to the non-compliant wealthy persons under section 122 (c) of the Ordinance 2001.
Moreover, the FBR has provided them 60 more days to respond to notices for filing of returns under section 122 (c) of the Ordinance 2001. After no-reply from these non-compliant persons, the tax department has passed provisional assessment orders against these persons after completion of legal formalities. In more than 450 cases, the directorate has raised income tax demand of more than Rs 225 million.
The provisional assessment made in Lahore is just an example of large-scale action against the wealthy persons and thousands of more orders are expected in current month in other cities of the country. The action taken by the directorate clearly reflects that un-documented persons have wrongly assumed that the tax department has no authentic information about their business activities.
However, completion of provisional assessments in 450 big cases of Lahore clearly reflects that the department has finalise assessments on the basis of authentic evidence of vehicles, properties, bank accounts and frequent travellers to abroad. According to sources, the directorate would made provisional assessments against thousands of cases in May 2011 where wealthy persons would fail to disclose their income and file the due income tax returns and wealth statements.
The FBR has made it clear to the un-documented persons that it is the right time to file their returns or their names would be included in the list of tax evaders and tax dodgers and they would face serious embarrassment in the public. If such wealthy persons continued to assume that the tax department is still not aware of details of their assets and income, it is a total misconception. Such persons would not only face strict legal action, but the department would also impose maximum penalty on such persons. The tax evaders may also go to jail in case of major evasion or concealment of taxes, sources said.
The directorate is in the process of finalisation of list of more non-complaint persons and provisional assessments of these un-documented persons would also be finalised under section 122 (c) of the Ordinance 2001. It is expected that the number of provisional assessments against the tax dodgers would suddenly rise in May-June and their names would be declared as tax evaders. It is advised that the wealthy persons, who have yet not file their returns, must immediately file the returns or face legal action, sources added.