Documenting big retail stores: on-the-spot notices to non-filers of income tax returns

An effective way to document the big retail outlets, business centres in famous markets and renowned departmental stores is issuing on-the-spot notices to non-filers of income tax returns, specifically in cases where the units fail to prominently display their National Tax Numbers (NTNs) at the shops/stores premises.
Sources told Business Recorder here on Tuesday that the on-the-spot notices to the shopkeepers and big retail outlets would act as an effective means to enforce filing of returns by the famous departmental stores where NTNs have not been displayed outside the business premises. The non-compliant persons should be issued NTNs on the spot along with notice for filing of returns at the earliest.
Presently, it takes several months to trace a unit for verification of the NTN at the business premises as NTN certificates have not been displayed by the units at the place of doing business. It is a requirement under the law to prominently display the NTN at the business outlets. However, due to non-compliance, it is very difficult for the tax department to ensure that the business unit has obtained NTN or not. In many cases, the NTN did not represent the business name, which creates problems for the tax department to verify the tax status of owner of a departmental store or shopping malls.
The FBR has observed that in most cases, NTN certificates have not been displayed by the taxpayers at their place of business. Hence, it cannot readily be ascertained by the department whether a particular person, who is doing business is a taxpayer or not. At times, a considerable time and effort is wasted to verify this.
In order to properly implement the relevant provision of law and to broaden the tax base, it is suggested that the provision of displaying NTN certificates at business place be widely publicised through print/electronic media, advising the taxpayers to display their NTN certificates at conspicuous place of their business within fifteen days (or any cut off date) of publication of advertisement by FBR. It may also be publicised, that after lapse of fifteen days (or any cut off date), physical survey would be conducted by FBR teams to monitor/enforce the compliance of relevant provisions of law/rule.
After lapse of given time, a team of three officials, headed by an officer may be constituted to visit (in first phase) the famous markets, renowned departmental stores. If NTN certificates have not been displayed, the team would be authorised to register the cases on spot, and issue notices u/s 114 of the Ordinance by allocating tax registration (TR) numbers. The FBR will implement the said strategy after approval of the tax authorities in due course of time.