According to sources, everybody should know the names of persons who are liable to file returns but are not filing the same. Tax directory of non-filers would disclose names of all such persons. Tax directory would include names of holders of National Tax Number (NTN) who are not filing returns. The NTN holders are liable to file returns. All those non-filer NTN holders would be made part of the tax directory.
When asked how the FBR will compile names of all non-filers, sources said that the exercise is underway to collect data of non-filers by May 2017. It is a cumbersome exercise to compile such directory of non-filers and make it public, sources said. Tax directory of non-filers would also cover individuals, salaried persons, professionals, armed forces personnel, professionals and all others, who are liable to file returns but are not filing their income tax returns.
A number of non-filers are regularly carrying out banking transactions involving huge amounts and paying withholding tax of non-filers. The persons engaged in banking transactions of huge amounts and liable to file returns would be included in the tax directory of non-filers.
The persons liable to file returns included NTN holders; persons having taxable income; every company; any non-profit organisation; any welfare institution; person who owns immovable property with a specified land area; owner of motor vehicle (engine capacity above 1000 CC); holder of commercial/industrial connection of electricity; resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body and any other liable to file return under the law.
On the pattern of tax directory for filers, the FBR will also disclose the computerised national identity card (CNICs) numbers of the non-filers, whose names would be published in the tax directory. Sources said that the FBR will publish tax directory on the basis of its own database, third-party information such as buyers and sellers of immovable properties, banking transactions, purchasers of vehicles and other sources of information available with the FBR. The data would be used to ensure filing of returns by these persons and brining them into the tax net.
Copyright Business Recorder, 2017