Return filers to submit 'Taxpayer Profile' electronically

ISLAMABAD: The return filers would now be required to submit "Taxpayer Profile" electronically including particulars of bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets etc.

Through Finance Bill 2020, the Federal Board of Revenue (FBR) has introduced section 114 (A) in the Income Tax Ordinance through which in addition to filing of annual tax return. The return filers will be required to submit "Taxpayer Profile" electronically accompanied by such annexures, statements or documents as may be prescribed on the web of FBR (i.e, iris).

During the technical briefing of the FBR on Friday, Dr Hamid Ateeq Sarwar, Member IR Policy said that the condition of the "Taxpayer Profile" would not be applicable to salaried class but only businesses, he added.

He was responding to a query whether such profiles are required to be submitted by the salaried individuals.

The taxpayer will have to disclose each and every bank account, utility connections, business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer and such other information as may be prescribed by FBR in the taxpayer profile. The Taxpayer Profile will required to be filed by the taxpayers on or before 30th December 2020, failing which they will have to pay a penalty @ Rs 2,500/- per day of default subject to a minimum of Rs. 10,000/-.

Apparently, the above provision of electronically filing the "taxpayer profile" seems to be applicable to all taxpayers including Companies, AoPs, Importers, Exporters, Wholesalers, Manufacturers, Retailers, Salaried Persons, etc.; but in response to the question of Business Recorder, during a press briefing by FBR, the FBR clarified that this provision is not applicable to the salaried persons.

Experts are of the view that the inefficiency of the web portal of the FBR, iris system, is not able to bear the load of existing return filers and the FBR has to extend the dates of filing of the tax returns several times. Whereas through the aforementioned provision of filing the taxpayer profile electronically will be another burden on the taxpayers as well on the iris system of FBR/PRAL. Therefore, this additional requirement to become Active Taxpayer will make the life of active taxpayer more cumbersome.

According to the Finance Bill 2002, (21) after section 114, amended as aforesaid, the following new section shall be ? ?added,

namely:- "114A. Taxpayer's profile.- (1) Subject to this Ordinance, the following persons shall furnish a profile,

namely:- (a) every person applying for registration under section 181;

(b) every person deriving income chargeable to tax under the head, "income from business";

(c) every person whose income is subject to final taxation;

(d) any non-profit organization as defined in clause (36) of section 2;

(e) any trust or welfare institution; or

(f) any other person prescribed by the Board.

?

(2) ?A taxpayer's profile-

(a) shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed;

(b) shall fully state, in the specified form and manner, the relevant particulars of-

(i) bank accounts;

(ii) utility connections;

(iii) business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer;

(iv) types of businesses; and

(v) such other information as may be prescribed;

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4A         Any person who is                 Such a person shall pay a penalty          114A

           required to furnish or            of Rs. 2,500 for each day of

           update a taxpayer's               default from the due date subject

           profile but fails to furnish      to a minimum penalty of

           or update within the due          Rs. 10,000.

           date.

4B         Any person who                    Such a person shall pay a penalty       181AA";

           contravenes the provisions        at the rate of Rs. 10,000 for               and

           of section                        each connection provided to an

           181AA.                            unregistered person.

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(c) shall be signed by the person being an individual, or the person's representative where section 172 applies; and

(d) shall be filed electronically on the web as prescribed by the Board.

?(3) ?A taxpayer's profile shall be furnished,-

(a) on or before the 31st day of December, 2020 in case of a person registered under section 181 before the 30thday of September, 2020; and

(b) within ninety days registration in case of a person not registered under section 181 before the 30th day of September, 2020.

(4) A taxpayer's profile shall be updated within ninety days of change in any of the relevant particulars of information as mentioned in clause (b) of subsection (2)."; (22) in section 115, sub-sections (4), (4A), (5) and (6) shall be omitted; (23) in section 116,- (A) ?in sub-section (3),-

(a) after the expression "filing revised wealth statement," the expression" with the prior approval of the Commissioner," shall be inserted; and

(b) for the full stop at the end a colon shall be substituted and thereafter the following new proviso and explanation shall be added, namely:-

"Provided that the Commissioner shall grant approval in case of a bonafide omission or wrong statement.

Explanation.- For the removal of doubt it is clarified that wealth statement cannot be revised after the expiry of five years from the due date of filing of return of income for that tax year."; and

?(B) ?sub-section (4) shall be omitted;

(50) in section 182, in sub-section (1), in the Table, in column (1),-

(A) against S. No. 1A, in column (2) and (4), the figure "115" shall be omitted;

(B) against S. No 1AA, in column (4), the figure "115" shall be omitted;

(C) after S. No. 4, the following new serial numbers and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely:-

(D) against S. No. 10, in column (4), the figure "115" shall be omitted;

(51) in section 182A, after sub-section (1), the following new sub-section shall be added, namely:-

"(2) Where a person fails to furnish or update a taxpayer's profile within the due date or time period specified in sub-section (3) of section 114A or within the date as extended by the Board under section 214A, such person shall not be included in the active taxpayers' list for the latest tax year ending prior to the aforesaid due date or extended date:

Provided that without prejudice to any other liability under this

Ordinance, such person shall be included in the active taxpayers' list upon filing the taxpayer's profile after the due date or extended date, if the person pays surcharge at Rupees-

(a) twenty thousand in case of a company;

(b) ten thousand in case of an association of persons; and

one thousand in case of an individual.";