Over 1.2 million people have filed their income tax returns for the Tax Year 2016. Out of these companies, most of non-filers employees belong to Karachi, Lahore and Islamabad. As per an estimate, over 200,900 employees of 50-60 corporate entities have not filed their returns for the Tax Year 2016. The return filers of these companies were over and above 53,000 during the said period. A top tax official was of the view that the quoted figure is too high and it is not possible that such a high number of employees are non-filers of returns in big companies of the country.
According to the sources, under the law, return filing is the sole responsibility of individuals working in the multinational companies and other corporate entities. It is not the responsibility of companies to file returns on the behalf of their employees. However, the tax department can ask the employers to assist the department in filing of returns. Using the withholding tax statements filed by the employers, the tax department or the Regional Tax Offices (RTOs) can see the list of employees whose tax has been deducted but returns have not been field by them. Based on the withholding tax statements filed by the employers, notices could be served by the RTOs and penalties could be imposed on the employees.
At the same time, a company can tell its employees to file returns, but it is the individual's own will whether or not to file return under the tax laws, sources said. The companies would not pay penalty for non-compliance by their employees as far as non-filing of returns by employees is concerned, sources clarified.
If the RTOs are not utilizing the withholding tax deduction statements filed by the employers of big corporate entities, it is an enforcement failure of the field formations or the RTOs, sources said. Sources added that the Directorate General of Broadening the Tax Base is working on a new system for expanding the tax base and bringing unregistered persons into the tax net.
It is important to mention here that the tax directory issued recently by Federal Board of Revenue for tax year 2016 revealed names of top corporate tax payers including Habib Bank Limited with tax payment of Rs 16,472,959,641 and Muslim Commercial Bank Limited tax of Rs 16,167,692,367. Among other top tax payers Askari Bank Limited paid tax of Rs 2,506,734,555; Bank Alfalah Limited, Rs 4,171,355,730; Bank Al-Habib Limited, Rs 4,808,736,856; and Citi Bank NA paid tax of Rs 1,445,692,689, tax directory said.
The list of tax directory for tax year 2016 also revealed that Allied Bank of Pakistan Limited paid tax of Rs 8,878,598,356; Zarai Taraqiati Bank Limited Rs 3,246,228,837; Habib Metropolitan Bank Limited, Rs 4,973,665,581; Askari Bank Limited - Rs 2,506,734,555; Meezan Bank Limited - Rs 1,664,172,843; National Bank of Pakistan - Rs 7,050,267,633 and Standard Chartered Bank (Pakistan) Limited - Rs 4,253,341,125.
Other banks tax payments for tax year 2016 revealed that Faysal Bank Limited paid Rs 1,689,827,066; Sindh Bank Limited Rs 1,798,378,146; Soneri Bank Limited Rs 1,556,220,853 and Bank of Khyber paid tax of Rs 1,100,112,382, list of tax directory for tax year 2016 added.
Copyright Business Recorder, 2017