Taxpayers Need to Update their profile to remain as Filer!
According to Profit.PkistanToday, taxpayers need to update their details by March 31, 2021, to avoid penalties and to be removed from the Active Taxpayers (ATL) list.
The last day to renew the profile was December 31, 2020, extended by the Federal Board of Revenue (FBR) until March 31, 2021, in view of the problems faced by taxpayers.
In terms of the Finance Act, 2020, Section 114A was included in the Income Tax Ordinance, 2001, regarding the taxpayer’s profile. According to the provision, the following persons are required to update their details on the IRIS: every person who applies for registration under Section 181; everyone earning taxable income under the head ‘money from business’; everyone whose income is taxed is the last; any non-profit organization as defined in subsection (36) of Section 2; any trustworthy or welfare organization; and any other person determined by FBR.
Details required to update the taxpayer profile are included: bank accounts; help communication; business premises, including all production, storage, or sales facilities operated or leased by a taxpayer; types of businesses; and other details that may be provided.
The FBR has issued a detailed statement on the matter stating that the difficulty of return forms is an example of the complexity of tax law. “However, there is a great need to simplify return forms without compromising on the details required to ensure that the translation is accurate.”
The FBR said that instead of trying to get all the right information on tax refunds, a new section could be set up where taxpayer details could be identified so that the taxpayer could take the correct information.
“A person who is already registered before September 30, 2020, and who receives business income or income through taxation, trust, welfare organizations, non-profit organizations, and other persons appointed by the board is required to submit a profile on or before December 31, 2020 (extended until March 31, 2021). ”
The FBR further stated that persons who received their registration after September 30, 2020 were proposed to submit the issue within 90 days of registration. In the event of a change in the details, those persons will update their details within 90 days of the change.
“The profile contains information relating to income in respect of bank accounts, communications, business premises including all production, storage or sales facilities operated or leased by the taxpayer, types of businesses and other information as determined by the board.”
FBR stated: “If a person fails to provide or update taxpayer details within a specified date or time as extended by FBR under Section 214A of the Ordinance, that person will not be included in the current active taxpayer list for the tax year ending before the due date or extended date.”
However, when filing or updating the profile, such persons will be allowed to be placed in the ATL upon payment of the other proposed tax of Rs20,000 in the case of a company, Rs10,000 in the case of a corporation (AOPs) and Rs1,000 in the case of a corporation of the individual.
“In addition, a fine of non-renewal or non-renewable profile of Rs2,500 per day for non-payment is subject to a minimum penalty of Rs10,000,” FBR said.
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