The level of non-compliance is evident from the fact that only 34,155 Associations of Persons (AOPs) filed income tax returns during 2010-11 against 135,292 registered AOPs, reflecting serious problems in documentation of economy. Sources told Business Recorder here on Wednesday that the documentation exercise of the FBR would also face an uphill task to enforce the filing of returns by the already registered persons.
The FBR is facing two major challenges in documentation of economy to discover new taxpayers and enforce filing of returns by a majority of already registered non-compliant business units. In case of AOPs, the FBR has decided to enforce filing of returns by 101,137 non-filers by May 2011. Beside, documentation of new persons, the non-filing of returns by registered persons including AOPs and companies etc has to be ensured by the tax department.
Out of 44,794 registered corporate entities, 18,098 filed their due income tax returns, showing an alarming situation within the corporate sector. The FBR has set a deadline of May 30, 2011 to ensure filing of income tax returns by the companies having valid National Tax Number (NTN).
The FBR has set deadline of April 15, 2011 to enforce filing of sales tax returns by top 1000 non-filer companies for the period July-December 2010. Similarly, the FBR has to enforce sales tax return filing by top 1000 short-filer companies pertaining to period of July-December 2010.