IT returns, WHT statements filing: FBR to implement enforcement plan

The Federal Board of Revenue (FBR) has to implement a national enforcement plan (2012) to enforce filing of income tax returns and withholding tax statements for the tax year 2011 by the non-filers and defaulted units, including companies, business units, associations of persons, and individuals during January 2011.
Sources told Business Recorder here on Friday that the action plan would be implemented at the level of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) for immediate compliance. The national enforcement plan (2012) would shortly be issued to the field formations to deal with the non-filers and defaulters on the direct taxes side.
It is expected that over 48 percent of persons, who have been e-enrolled with the tax department and not filed returns electronically would be served notices under Income Tax Ordinance 2001. The FBR has also decided to take action against non-filer government employees in BS-19 and above in the public sector, who are deriving income above Rs 500,000. These employees of BS-19 and above in public sector stood at around 13,654 and department would check whether they are filing returns or not. Similar exercise would be done for employees working in private sector having annual income above Rs 500,000.
The following Enforcement Action Plan (2012) is contemplated to address non-filing of returns and withholding tax statements: Firstly, the FBR will identify non-filers, individuals and the AOPs, liable to e-file the returns of income. Last date for filing of returns for taxpayers including corporate entities has lapsed. Data of persons liable to e-file returns of income shows that almost 48 percent of persons e-enrolled have not yet filed their returns of income, as is evident from the database.
According to data made available by Pakistan Revenue Automation Limited (PRAL) at tax system, total 410,390 taxpayers have been e-enrolled. Returns had been e-filed by 215,605 persons by December 21, 2011 as per data available at tax system. The number of defaulters notified by Pakistan Revenue Automation Limited (PRAL) at tax system by December 21, 2011 stood at 194,785.
It is pertinent to mention that although PRAL has available with it the data of persons e-enrolled, yet the data of persons actually liable to e-file returns of income are thus obliged to get e-enrolled and resultantly liable to e-file returns of income is not readily available, FBR plan said. The FBR has devised an action plan for the e-enrolled persons liable to file returns electronically category is suggested. As per action plan (2012), the FBR will send e-intimation to all identified defaulters by PRAL by January 15, 2012, if not done already done. The Large Taxpayer Units and Regional Tax Offices would issue statutory notices to the defaulters under section 114(4) by January 31, 2012.
The LTUs/RTOs would identify persons actually liable to e-file returns of income ie having income exceeding Rs 500,000 through information from Project Director, Project to Improve Financial Reporting and Auditing (PIFRA) regarding payments of salaries, for contracts of goods and services and hiring of office/residential property by the government and other potential sources like banks, multinationals and major local companies, etc, in respect of pay and other perquisite in cash or otherwise to salaried persons and resultant action against them, sources said.
The FBR action plan (2012) said that the information obtained from PIFRA shows that the number of employees in BS-19 and above in the public sector alone is 13,654 ie who must be deriving income in excess of Rs 500,000. Private sector employees' number is still larger, and majority of them is neither e-enrolled nor is filing returns of income, sources added.