FBR issues action plan against 'high-risk cases'

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has declared stop-filers of income tax returns as 'high-risk cases' for 2011-12 where registered persons have shown high turnover/income for initiation of penal proceedings under Income Tax Ordinance 2001.

Sources told Business Recorder here on Friday that the FBR has initiated action against 'high-risk cases', particularly non-filers and stop-filers of tax returns, for completion of legal proceedings against them during 2011-12. In this connection, the FBR has estimated that thousands of non-filers and stop-filers of returns would soon face legal action. The registered persons, who have stopped filing returns, have been divided into four categories, on the basis of declared turnover/income for identification of 'high-risk cases'. The action, including penal action and recovery proceedings against the 'high-risk cases', would be completed during 2011-12, the FBR said.

According to the action-plan against the registered non-filers and stop-filers, the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) would maintain complete lists of registered non-filers and stop-filers supplied by Pakistan Revenue Automation (PRAL), and issue statutory notices, to be served through due process of law, for filing of tax returns.

It has also been advised that 'Registered Stop Filers' may be bifurcated into at least four categories, on the basis of turnover/income declared in the past. The stop filers who had been declaring high turn over/income may be marked as high risk cases and taken up first on priority basis for enforcement of returns/monthly returns and for recovery of tax payable by them, the FBR said.

It said that where returns have been received in response to notices, information shall be compiled in terms of total number of returns filed and total amount of tax paid with the returns.

Where returns have not been filed, after service of statutory notices, best judgment assessments or provisional assessments (as the case may be) shall be made and demand notices along with orders issued to the defaulting taxpayers. Information shall be compiled with reference to the number of best judgment assessments made and amount of tax charged, FBR's instructions maintained.

The FBR further said that penal proceedings shall be completed in cases where best judgment assessments or provisional assessments (as the case may be) have been made and penal orders shall be issued to the taxpayers. The information shall be compiled with reference to penal orders completed and amount of penalty levied.

The recovery measures shall be initiated under the law and the recovery rules to recover the payable tax and penalty. The information shall be compiled with reference to amount of tax and penalty recovered, the FBR's directive added.