It is reliably learnt that FBR's electronic system "IRIS" https://iris.fbr.gov.pk is unable to cater/accept the refunds applications from the taxpayers who had duly filed their income tax returns since August 2016 and clearly refundable income tax has been denied by the IRIS with the following message "Transaction not allowed, as there is no refundable amount".
When contacted tax lawyer Waheed Shahzad Butt told this correspondent that FBR's electronic system IRIS https://iris.fbr.gov.pk has completely failed to accept / process the refund applications for the Tax Year 2016 and despite repeated attempts by the taxpayers following categorical message has been appeared on the IRIS screen "Transaction not allowed, as there is no refundable amount". Earlier the electronic system reflects following message "Transaction not allowed, as Workflow Rule has failed".
Tax lawyer further added that quite surprisingly all income tax returns duly submitted through IRIS electronically on FBR's official webportal https://iris.fbr.gov.pk remained placed on the folder classified by the IRIS as "Outbox" on the official webpage, which ultimately means that income tax return/data has not been processed/forwarded by the IRIS to the FBR's data bank for computing the quantum of refunds claimed by the taxpayers for the Tax Year 2016 since the filing of first tax return for the Tax Year 2016. While in exercise of powers conferred under Section 214A of the Income Tax Ordinance, 2001 FBR has already extended date of filing of return firstly through Circular 09 of 2016 and secondly through Circular 11 of 2016 and now the last date to file the tax return is October 31, 2016.
There is a need to conduct an audit of tax receipts and refunds due in order to arrive at the exact figure of refunds. The Federal Tax Ombudsman had also constituted a committee to determine the exact tax refund claims and recommend a future course of action, lawyer added.
The tax department is bound to issue/process the tax refund within 60 days after the claim date. As per law, taxpayers, who pay adjustable withholding income tax at various payments, have right to claim refunds. Refunds can only be claimed when a taxpayer files income tax return with the FBR. A taxpayer can claim refunds on withholding tax deducted on cellular/landline phone, electricity bill payments, cash withdrawal, school fee and functions etc.
Refund is repayment of taxes, already collected on goods/services etc while FBR holds that refund due to failure on the part of IRIS system. Federal Tax Ombudsman office too is seized of refund issues. It has pointed out 90 percent complaints it handles is on account of delays in refund, lawyer added.