Amnesty from income tax audit: late filers to avail audit closure opportunity

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Amnesty from income tax audit: late filers to avail audit closure opportunity

November 19, 2018

Karachi, November 19, 2018 (PPI-OT): Addressing a seminar on the scope of Section 214E of Income Tax Ord. 2001 at Karachi, Member FBR Taxpayers’ Audit Ms Nausheen Javaid Amjad informed that FBR has taken AN unprecedented facilitation step for taxpayers who filed their returns of income for Tax Years 2015, 2016 and 2017 after closing dates. She noted that first Section 214D : automatic selection for audit for late-filers was omitted/withdrawn from ITO 2001 through Finance Act, 2018 and subsequently Section 214E : Closure of Audit was inserted via Supplementary Finance Act, 2018.

She added that three different modes for payment of tax or penalty HAVE been provided UNDER Section 214E(iii) and now it is upto late-filers to comply the provisions applicable to them and avail the opportunity to close their compulsory audit proceeding provided that amendment of assessment proceeding u/s 122 has not been initiated by the Department. She added that explanatory IT Circular No.6 of 2018 has also been issued by the Board in this course.

She underscored that whole of the scheme is integrated and automated where no human intervention is required which is unprecedented in the history of Pakistan. The Member however stressed that proceedings of Sections 177(1) and 214C are independent of Section 214E. Upon questions from participants that payment of tax or penalty is unjustified she hastened to add that the opportunity is optional else late-filers may go with the alternative of audit proceeding.

To another question about thousands of notices sent by FBR to taxpayers over the last weekend, the Member highlighted that they were purposely sent to abreast the taxpayers that their case qualifies for easy-exit from compulsory audit. Meanwhile representative from PRAL Soomro demonstrated how to practically avail the facility on IRIS. He pointed out that a separate icon is also added on IRIS as well as to create PSID for the purpose.

Mr Abdul Qadir Memon President PTBA in his concluding address gave the insight and philosophy of the insertion of Section 214E in ITO 2001. He added that FBR has earmarked over 1.2 m cases of late-filers for compulsory audit u/s 214D which otherwise was not humanly possible to accomplish. He however lauded the cooperation and efforts extended by Member Taxpayers Audit to realize the issue and devise a solution which is practically agreeable to masses. He finally reminded the participants of the cut-off date to avail the opportunity by 31/12/2018.

President KTBA Mr Khalid Mehmood in his welcome note thanked the Member FBR to grace the event. Commenting on the scheme he remarked that this is high time for taxpayers to put their house in order. He hoped that whole process is likely to be culminated in facilitation mode by the FBR.

The responsibilities of Moderator were shared by PTBA Secretary Mr Zubair Ahmad and KTBA Secretary Mr Zafar Ahmad. The seminar was jointly organized by PTBA and KTBA and was attended by large number of tax officials, tax consultants and Tax Bar members.

For more information, contact:
Karachi Tax Bar Association (KTBA)
Bar Chambers, New Income Tax Building,
Shahra-e-Kamal Ataturk, Karachi
Tel: +92-21-99211792

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