All NTN holders: LTUs, RTOs told to enforce income tax return filing

The Federal Board of Revenue (FBR) has directed the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to immediately enforce filing of income tax returns by each and every National Tax Number (NTN) holder under the plan to increase number of return filers during 2011-12.
In this regard, the FBR issued instructions to the Chief Commissioners of the LTUs and RTOs on Monday. According to the FBR's instructions, priority has been given to the enforcement of return filing by the NTN holders. All LTUs and RTOs would enforce filing of income tax returns by each and every NTN holder, without fail, the FBR directive said.
Sources told Business Recorder here on Monday that there is a huge gap between the NTN holders and actual return filers. This gap needs to be narrowed by increasing the number of income tax return filers. Even if the FBR is able to successfully enforce filing of returns by all NTN holders, the number of return filers would witness a major jump by the end of September 2011.
Under the on-going exercise of documentation of economy, the FBR is identifying taxpayers with the help of third-party information and data collected from various sources. Now, the FBR has also decided to focus on the persons who have obtained the NTN, but failed to file their income tax returns. This is also one of the documentation measures being taken by the FBR to improve compliance by the NTN holders, who are reluctant to file returns. Through this single enforcement measure, the FBR has estimated a visible increase in the number of return filers during current fiscal year.
Under section 114 of the Income Tax Ordinance 2001, different categories of taxpayers are liable to file income tax returns including persons who own immovable property with a land area of 250 square yards or more or own any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory; owns immovable property with a land area of 500 square yards or more located in a rating area; person, who owns a flat having covered area of 2000 square feet or more located in a rating area; owns a motor vehicle having engine capacity above 1000 cc and persons who have obtained National Tax Numbers. Other persons liable to file income tax return under section 114 of the Ordinance 2001 have to file returns.