Certain individual taxpayers: IRIS portal creating difficulties: KCCI

KARACHI: President Karachi Chamber of Commerce & Industry (KCCI), Talat Mahmood has urged the Federal Board of Revenue (FBR) to address a technical restriction in the IRIS portal that is creating difficulties for certain individual taxpayers who have resumed their tax residency in Pakistan after a period of non-residence.

In a letter addressed to Zubair Bilal, Member (Inland Revenue–Operations) FBR, President KCCI has called for a targeted modification of the Wealth Reconciliation module for Tax Year 2026, enabling eligible taxpayers to enter the appropriate opening wealth balance where no Wealth Statements were required to be filed during the intervening years.

Talat Mahmood stated that the current IRIS system automatically carries forward the opening wealth balance from the last Wealth Statement filed and does not allow it to be amended. Consequently, individuals who were non-resident during subsequent tax years and were not required to furnish Wealth Statements for those years may face difficulties when they regain resident status and become liable to submit a Wealth Statement under Section 116(2) of the Income Tax Ordinance, 2001.

He explained that, for instance, an individual who filed a Wealth Statement for Tax Year 2023, remained non-resident during Tax Years 2024 and 2025, and subsequently became resident during Tax Year 2026 may be required to furnish a Wealth Statement for the current tax year. However, the system continues to reflect the wealth balance reported for Tax Year 2023, without allowing the individual to enter the appropriate opening balance for Tax Year 2026. This creates an avoidable reconciliation difficulty and may hinder the accurate and timely submission of the tax return.

President KCCI emphasized that the requested facility should be strictly limited to individuals who were not required under the applicable law to file Wealth Statements during the intervening preceding tax years. He clarified that the proposal was not intended to provide a general exemption from wealth declaration requirements or to relax the statutory obligations of taxpayers who were required to submit such statements.

Talat Mahmood urged the FBR to direct its relevant technical team, including Pakistan Revenue Automation (Pvt.) Limited (PRAL), to modify the IRIS validation mechanism accordingly. He said the system should facilitate eligible returning residents in entering an appropriate opening wealth balance for the relevant tax year, subject to applicable legal requirements and verification where necessary, without compelling them to reconcile wealth movements for years in which they were not legally required to furnish Wealth Statements.

He maintained that a targeted solution would facilitate compliance with Section 116(2) of the Income Tax Ordinance, 2001, remove an unnecessary technical impediment and enable affected taxpayers to fulfil their current-year filing obligations accurately and efficiently. It would also ensure that the filing system accommodates the circumstances of eligible taxpayers without imposing requirements beyond their applicable statutory obligations.

President KCCI called for the matter to be resolved on a priority basis in view of the ongoing filing requirements for Tax Year 2026, expressing hope that the FBR would take prompt corrective action in the interest of facilitating taxpayers and improving the effectiveness of the online tax filing system.

Copyright Business Recorder, 2026