Non-Filers to get disconnected

By Published On: December 20, 20221.8 min readViews: 766

Non-Filers to get disconnected

By Published On: December 20, 20221.8 min readViews: 766
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Federal Board of Revenue (FBR) is identifying persons, who are liable to file annual income tax returns but failed to discharge liability, for disabling their mobile phones and utility connections.

The deadline for filing income tax returns for the tax year 2022 has expired on December 15, 2022, which was extended three times from actual deadline.

The actual deadline for filing returns was September 30, 2022 for taxpayers including salaried persons, business individuals, association of persons (AOPs) and corporate entities having special financial year.

However, corporate entities having financial year up to June 30 are required to file their returns for tax year 2022 up to December 31, 2022.

It is pertinent to mention here that through Finance Act, 2022 a section 114B was inserted to Income Tax Ordinance, 2001, which empowered the tax authorities to enforce filing of returns.

Following is the text of Section 114B of Income Tax Ordinance, 2001:

Section 114B. Powers to enforce filing of returns.

(1) Notwithstanding anything contained in any other law for the time being in force, the Board shall have the powers to issue income tax general order in respect of persons who are not appearing on active taxpayers’ list but are liable to file return under the provisions of the Ordinance.

(2) The income tax general order issued under sub-section (1) may entail any or all of the following consequences for the persons mentioned therein, namely:–

(a) disabling of mobile phones or mobile phone SIMS;

(b) discontinuance of electricity connection; or

(c) discontinuance of gas connection.

(3) The Board or the Commissioner having jurisdiction over the person mentioned in the income tax general order may order restoration of mobile phones, mobile phone SIMS and connections of electricity and gas, in cases where he is satisfied that —

(a) the return has been filed; or

(b) person was not liable to file return under the provisions of the Ordinance.

(4) No person shall be included in the general order under sub-section (1) unless following conditions have been met with, namely:–

(a) notice under sub-section (4) of section 114 has been issued;

(b) date of compliance of the notice under sub-section (4) of section 114 has elapsed; and

(c) the person has not filed the return.

(5) The action under this section shall not preclude any other action provided under the provisions of the Ordinance.

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Rida Malik

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