In a major move to facilitate compliant taxpayers, the Federal Board of Revenue (FBR) has decided that all income tax returns filed electronically for the Tax Year 2016 would be made part of the updated Active Taxpayers List (ATL) from March 1, 2017.
Dr Muhammad Iqbal, FBR Senior Member Tax Policy and spokesperson informedBusiness Recorder here on Saturday that the active taxpayers who filed returns for Tax Year 2015 but did not file returns for Tax Year 2016, would not be part of the new ATL from March 1, 2017. Therefore, taxpayers who filed returns for tax year 2015 but did not file returns for the tax year 2016, would not be included in the ATL from March 1, 2017.
It has been advised to the persons whose names have been included in the current version of the ATL to ensure return filing electronically for the tax year 2016 to continue to operate as active taxpayers under ATL to be updated on March 1, 2017. The taxpayers, who have not filed the returns for the tax year 2016, would be excluded from the updated ATL from March 1, 2017 as per relevant rules. All such non-filers for the tax year 2016 would be subjected to higher rates of withholding tax from March 1, 2017 and will also be subjected to withholding tax on banking transactions under section 236P of the Income Tax Ordinance, Dr Iqbal said.
He explained that the names of those taxpayers who had filed their returns in tax year 2015 but failed to file tax returns for the tax year 2016 would not be included in the ATL for tax year 2016, and they would be treated as non-filers required to pay income tax as per enhanced withholding tax rates on the pattern of non-filers as per various provisions of law, the FBR Member added.
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