Documentation drive: mapping of all commercial markets directed

In a major step for documentation of economy at national level, the Federal Board of Revenue on Friday directed mapping of newly-constructed and under-construction commercial buildings, big shop/outlets in all shopping malls, departmental stores and business establishments across the country.
FBR Member Inland Revenue Shahid Hussain Asad informed the National Assembly Standing Committee on Finance which met at Parliament House on Friday with Fouzia Wahab MNA in the chair here on Friday that all Regional Tax Offices'' field formations have been instructed to visit each area in their jurisdiction and compile the list of commercial buildings recently constructed or are under construction, number of shops constructed and how many have been rented out recently, who are running what kind of business in these shops and buildings and those under construction with building plan and the names of the owners.
In this connection, the FBR has issued instructions to the Regional Tax Offices here on Friday for mapping of commercial markets on national level. Shahid Hussain Asad explained the committee that people are more interested in making investment in those areas, which are still enjoying tax relaxation, and real estate is one of the major areas where majority of the investment is going as the investors strongly feels that their investment is more safe. FBR Member IR further informed that the task of mapping of the commercial buildings would greatly help in tracing new taxpayers as huge investment is taking place in these commercial buildings.
He said that inland revenue officers have also been instructed to visit each business premises and just examine that business owners have displayed their national tax numbers at their out gates or not. The staff would ensure that those who don''t have NTN must get their NTNs, those having NTNs but have not filed their income tax returns must file their mandatory tax return. Notices are being issued to get NTN numbers or NTN holders to file their tax returns within 30 days.
If all the big shops in all shopping malls and renowned departmental stores started prominently displaying their NTNs at their shops, tax department can easily identify the NTN holders for verification of their return filing for documentation purposes, he added. He was of the view that now tax authorities would reach at the doorsteps of each business establishment for ensuring filing of their mandatory tax return.
He further informed that the data of National Database Registration Authority (Nadra) as well as FBR''s own database would help in reaching new taxpayers through investment being made in real estate sector or other expenditures being incurred by the rich without paying due tax. During the meeting, FBR Chairman fully endorsed the appointment of Shahid Hussain Asad as new FBR Member Inland Revenue and said that it is the best choice to have Shahid as Member IR for continuation of reforms and broadening the tax base. FBR Chairman Salman Siddiq present in the meeting informed that consultation is underway with Nadra for reaching an agreement on data usage by the FBR and it is expected that within one week agreement would be finalised.
He explained the committee that under the agreement FBR would pay Nadra data usage charges and use this data for broadening the tax base as many institutions are using this data and paying charges to Nadra. He further informed that out of potential 700,000 rich who have been identified for registration as taxpayers, examination of the data of 42,000 have been examined, data of other 100,000 would be examined within next week. Similarly, the securitisation of data of another 100,000 rich persons would be completed by week ending after next week. The FBR after examining the potential of income and expenditures of the rich would forward cases of 60,000 rich persons to filed formations each month to registered them and ask them file income tax returns with payment of due tax.