It may be implemented from 2009-10, with ample legal backing for implementation. In the first phase, the FBR may only include sales tax filers and corporate income tax filers as part of the 'White Taxpayers' list, which would be subjected to removal. Anyone who would be placed on the 'Black List of Taxpayers' would be removed from the 'White Taxpayers' list.
There is a possibility that FBR may not remove e-filing taxpayers from the 'White Taxpayers List' due to quality of data. As the e-filing population would increase, the 'White Taxpayers' program would be systematically expanded. In the first phase, an automated link between the 'White List of Taxpayers' and the Customs and Sales Tax systems will be required.
The "White List of Taxpayers" can prevent the operational systems from accepting transactions from taxpayers who are not on the "White List". The "White List of Taxpayers" will become an integrated part of the operational systems-not an informational check only. The decision to manually override the "White List" must be checked by the audit system to be reviewed by a group of tax officials.
Sources said that the FBR would conduct consultations with taxpayers and their representatives such as business organisations, trade bodies, etc, for proper use and implementation of white list by FBR. The board would also take input of business community to access the "White List", keeping in view their business needs.
Another proposal is the "Creation of a White List Directorate". The FBR is examining whether there is need for creation of a new permanent organisation within the FBR, or a specialised team could undertake the project. During the implementation of the "White List" scheme, the board would ensure that the taxpayers in the list must be those actually required to register, file, and pay taxes. For this purpose, the information system should accurately reflect taxpayers' situation.
The FBR would also devise a policy to handle different situations of taxpayers during their business transactions. For example, if there is a timing difference between when a sales tax return is processed and when the payment is processed, a taxpayer may be removed from the 'white list' for a period of time until the transactions synchronise. In addition, the infrastructure to support the white list would need to be fully available to support taxpayers' queries, sources added.