Daily Archives: May 28, 2012
Karachi: The Federal Board of Revenue (FBR) has intensified its efforts to generate taxes in order to meet its annual revenue collection targets as it moved aggressively against the defaulters in all potential sectors for immediate recovery of unpaid taxes.
The authority froze accounts of public sector entities and multinational companies recently such as APP and Mobilink on the one hand, while it has identified as many as 119,870 non-filer salaried persons, drawing annual salary of more than Rs 0.5 million for tax recovery, that is, in fact, a huge area where the taxes can be generated within the current financial year and in the future as well.
All these tax evaders were required to file their Returns of Income for tax year 2011 on e-portal of FBR but they did not discharge their legal obligation on this count and committed crime in the eyes of law.
Such non-filers are liable to pay penalty that is equal to 0.1% of the tax payable for each day of default subject to a minimum penalty of Rs. 5000 and maximum penalty of Rs. 25% of tax payable and default surcharge under section 205 of the Income Tax Ordinance, 2001.
The FBR has also intensified its efforts to recover withholding tax under section 153 of the Income Tax Ordinance, 2001 from cotton ginners that are required to withhold tax on the sale of cotton bales but they did not deposit the withholding tax amounting to Rs 2.597 billion.
Out of this Rs 1.881 billion have been recovered up to April, 2012 whereas four field Units of FBR where majority of the cotton ginners are located, are involved in this monitoring exercise. RTO, Multan has made further recovery of Rs. 104 million in May, 2012 and Rs. 250 million on the account are expected to be recovered by 15th of June, 2012.
The recovery of another 360 million is expected to be made by RTOs Hyderabad, Bahawalpur and Sukkur by 30th June 2012. Similar defaults have been unearthed in certain other areas also that include the banking sector.
The information regarding these non-filers has been disseminated by the Withholding Wing of FBR to its field formations for enforcing returns from them. The officers claimed that hectic efforts are being made to realize the defaulted amount of Withholding Taxes during current financial year.