Deadline for filing of tax returns: Tax experts question wisdom of FBR authorities

ISLAMABAD: Quoting the example of neighbouring India's tax collecting authorities that have extended the deadline for the filing of tax returns due to the raging second wave of the Covid pandemic, Pakistan's most-respected tax advisors association has questioned the wisdom of the Federal Board of Revenue (FBR) authorities for their apparent reluctance to facilitate citizens in a similar manner, and dilly-dallying over the clamouring call.

In a communication to Prime Minister Imran Khan, Pakistan Tax Advisers Association (PTAA) Chairman and Advocate Supreme Court Javed Iqbal Qazi stated that the last date of e-filing of tax returns has been fixed by the FBR, as December 8th, 2020.

In this respect, it is submitted that the format of tax return for retailers was inserted in the IRIS System at the end of October, 2020, while for small manufacturers it is due on the IRIS System, as notification for submission of objections was introduced on 26 November 2020.

He said that due to the second wave of the Covid-19, the business class as well as the general public had been affected adversely financially, as well as health wise, therefore, the taxpayers were not visiting/contacting their tax consultants/advisers for the submissions of tax returns, while tax consultants/tax advisors were busy in the preparation of tax returns/wealth statements and issuance of tax challans, and were playing their national role as usual.

On the other hand, the FBR has issued a notification bearing CNo 6(2)S(IR-Ops/2020(Pt) dated 4th December 2020 to demonstrate its strict jurisdiction and control over the taxpayers by not extending the date of tax returns, which is 08 December 2020.

Instead of facilitating the affected nation the FBR is insisting for the submission of returns by the due date that is 8th December 2020.

He said that the mere fact that some office bearers of tax bars agreed to an allowance of 90 days time to submit the tax returns from the date of introduction/notifying the tax return form should not be considered as a final verdict as the existing conditions were changing for the worse.

For the tax year 2019 the FBR itself extended the last date for more than 90 days that is till 28 February 2020.

The FBR now expects to achieve the target/goal for tax year 2020 by 8th December 2020, which is not possible in any case.

Similar extensions have been granted by the neighbouring countries to facilitate their taxpayers who are also affected by the Covid-19, the chairman PTAA stated.

In view of the above, it is requested that the chairman FBR be directed to show grace towards the noble national cause, and date of e-filing of tax returns be extended to 31 January 2021 to meet the numerical; financial, targets set by the revenue authorities.

This letter has been addressed to the prime minister in the extreme interest of the country which is adversely facing the second phase of Covid-19, Iqbal Qazi added.

Copyright Business Recorder, 2020