Exclusion from ATL: registration of taxpayers will be suspended

The Federal Board of Revenue (FBR) will suspend income tax and sales tax registration of the non-compliant companies, associations of persons (AOPs) and other categories of taxpayers whose names would be excluded from the ''Active Taxpayer List'' (ATL).
The FBR on Saturday issued SRO 09 (I)/2011 to propose amendments in the Income Tax Rules 2002 to obtain legal backing for enforcement of the measure. The new rules would enable the Board to treat the non-compliant persons as suspended till they become compliant as far as filing of returns and payment of taxes is concerned.
According to the new rule (81B Active Taxpayers List), the registration of the taxpayer removed from the ATL will be treated as suspended for the period of his removal and shall not be treated as a registered person during the suspension period unless regularised through an order by the respective Commissioner (Enforcement).
The entire suspension period of registration will automatically be regularised immediately upon compliance by the defaulter. The procedure shows that the non-compliant taxpayers will be removed from the Active Taxpayers List through the automated system.
In case of persons required to file the declarations electronically, upon expiry of the due date, the computer system will send an e-intimation at the registered e-mail address of the taxpayer informing him about his default and advising him to make the compliance within 7 days'' time, failing which the name shall be removed from the ''Active Taxpayers List''.
After completion of 7 days'' compliance time after issuance of the e-intimation sent through the computer system referred above, the computer system will remove automatically the name of the non-compliant taxpayer from the Active Taxpayers List. In case of persons not required to file the declarations electronically, upon expiry of the due date and feeding of all the returns in the computer system, the respective Commissioner (Enforcement) shall initiate the ATL process through the computer system whereby the computer system will print ''Intimation Letter'' to the non-compliant taxpayer informing him about his default, advising him to show the compliance within ten days, failing which his name will be removed from the Active Taxpayers List.
Upon receipt of the return, the respective Commissioner (Enforcement) shall arrange to feed the return to the computer within a week. After completion of a period of ten (10) days of the intimation issued by the computer system referred above, the computer system will remove the names of the non-compliant taxpayers from the Active Taxpayers List. The computer system will execute the ATL procedure every night at 2400 hrs and bring the compliant taxpayers back to the ATL.
Under the new rules, the Board shall publish Active Taxpayers List referred to as ATL henceforth, comprising persons complying with the following within due date: Filing the return of income/statement u/s 114 & 115, filing the wealth statement u/s 116, filing of return u/s 143 & 144, filing the statement of tax deduction u/s 165, deducting the tax at source and depositing it, paying the advance tax, responding to the notice issued by the commissioner of Inland Revenue and any other statement prescribed by the Board.
The rule further said that initially all the compliant taxpayers meeting the following criteria will be included in the Active Taxpayers List (ATL): E-filers of return of income/statement u/s 114/115 for Tax Year 2009, e-Filers of Quarterly Employer Statements on deductions made u/s 149 of the Income Tax Ordinance 2001, for tax years 2009, onwards, e-Filers of Quarterly Withholding Tax Statement u/s 165 of the Income Tax Ordinance 2001, for tax years 2009, onwards, employees whose annual income is Rs 500,000 and above (as reported by their employers) and e-filed their income tax returns for TY-2009, onwards and meet the criteria laid under Sales Tax, Federal Excise and Customs for including the taxpayers in the Active Taxpayers List.
Following actions will be taken in advance for informing the taxpayers regarding their non-compliance: a) Provisional Active Taxpayers List will be made available on the FBR''s web portal (15) days prior to its finalisation. b) Access to the ATL will be on cases to case basis through the NTN or CNIC of the taxpayer. c) e-intimations will be sent to the e-enrolled persons not qualifying the criteria referred above and thirty days'' time shall be allowed to ensure compliance.
The initial criteria and any change in such criteria shall also be publicised for education and awareness of the taxpayers. The taxpayer registered under section 181 of the Income Tax Ordinance 2001, shall automatically be placed in the Active Taxpayers List, on the day of its registration subject to the following conditions that: No return/statement due on the date of registration is pending to be filed and the compliance wherever due, has been made, FBR rules added.