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  • Sep 15th, 2017
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Federal Board of Revenue (FBR) is likely to remain unable to dispose of pending audit cases by December 31, 2017 unless the section 214D of the Income Tax Ordinance 2001, was skipped, said President of the Karachi Tax Bar Association (KTBA).

In an exclusive chat with Business Recorder at a lunch ceremony at the KTBA office, Abdul Aziz Tayabani, the KTBA president said that the section 214D of Income Tax Ordinance, 2001 was not only causing pending of audit cases but also discouraging taxpayers for e-filing of income tax returns as the cases were selected, automatically over late e-filing of returns under the aforesaid section.

"FBR is incapable to settle the myriad quantity of audit cases reached over 0.2 million till the deadline and the audit cases are continuously being piled up as long as the section 214D of Income Tax Ordinance, 2001 is not removed," he said.

Replying to a question, Tayabani said that FBR had not notified wealth statement since long but declared its submission mandatory with income tax returns, which he believed was an illegal practice as far as law is concerned.

Moreover, he said that FBR through Short Messaging Service (SMS) was encouraging taxpayers to e-file income tax returns as soon as possible to avoid any difficulty due to excessive burden on system during the last days of September. He said that the board, instead of advising taxpayers to e-file returns instantaneously, should improve its bandwidth to resolve link-down issue during last days of e-filing of returns.

Meanwhile, the KTBA has also written a letter to the FBR chairman, requesting him to notify the form of wealth statement and reconciliation statement for e-filers and forms of return of income/ statement of final taxation, wealth statement and reconciliation statement on excel sheet for manual filers.

Syed Rehan Jafferi, Chairman Advisory Committee of the KTBA also said that FBR had to simplify the form for income tax returns and urged the revenue collection authority to ensure maximum facilitation for taxpayers instead of creating difficulties.

On the other hand, in view of pending of around 0.2 million cases, the board had directed all field formation during recent Chief Commissioners Conference in Islamabad to dispose of at least 50 percent or 100, 000 pending audit cases in their respective jurisdiction by the end of current calendar year. These cases were selected for audit under sections 177, 214C, 216D and clause 72 and 94 for tax years 2014, 15 and 16.



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