Inceptive Solutions Pakistan (Outsourced Accounting & Bookkeeping Services)

22/01/2020

File Income Tax Returns-Be an Active Taxpayer. Last Date: 31st January 2020.

31/10/2019

24/01/2019

Mini Budget 2019

Salient features

Tax on income of Banks from loans to SME , agricultural and low cost housing sector to be reduced to 20%.
Rs5 billion revolving fund will be introduced for low cost housing sector

Withholding tax for filers on banking transactions will be eliminated to encourage the culture of paying taxes.

Non-fillers will be able to purchase small and mid-size cars up to 1300CC, but the tax would be increased.

Tax has been decreased to Rs5000 for small wedding halls up to 500 square feet.

Pilot scheme to be introduced in Islamabad to facilitate traders in filing and paying taxes.

Duty on import of newsprint eliminated.

Special economic zones have been formed keeping in mind the interest of CPEC.

In the next 5 years, those working to produce products for renewable energy will be exempt from sales tax and customs duty.

No tax on bids for sports franchises until profitability.

From July 1 super tax will be eliminated for non-banking companies.

Continuation of 1pc per annum reduction in corporate income tax.

Withholding tax on trading in the stock exchange to be removed.

Tax will be increased for vehicles over 1800CC

Tax for low priced phones will be decreased, will remain the same for expensive phones.

Scheme to be introduced of promissory notes for exporters. Any exporter will be able to take loans from banks on these notes.

Duty on diesel engines for agricultural purposes decreased to five per cent.

19/01/2019

PTBA requested Finance Minister Mr. Asad Umar to withdraw Section 182A of Income Tax Ordinance in the forthcoming Supplementary Finance Bill, 2019 to encourage the potential taxpayers to pay due tax and become part of tax net even after the due dates of filing of return.

The tax bar said that on examination of current ATL on the basis of return of income tax filed for the tax year 2017, the total number of active taxpayers is 1,792,630.

It said that the finance minister himself and the government was making all-out effort to encourage bringing every person, who is liable to pay tax into the tax net.

The FBR is also putting time and energy to resolve all long outstanding issues and also amending laws to build confidence of the genuine taxpayers of the country.

The tax bar said that the Finance Act, 2018 assented on May 22, 2018 introduced penal provision of law through Section 182A of the Income Tax Ordinance, 2001 with the object to ensure filing of return of income within the prescribed due date.

However, it is a fact that till due date the total number of returns filed for the tax year 2018 is 1,552,287.

“The provision of law, you would observe that any person, who has or would be filing his return of income in case of individual / AOP after December 17, 2018 and in case of companies after December 31, 2018 would not be included in the ATL for the year for which return was not filed within due date,” the PTBA informed the finance minister.

The tax bar also pointed out penalty under this provision stating that it was very harsh for failure to file return within the due date.

The imposition of penalty under Section 182A of the Ordinance is nothing but levy of double penalty on the existing taxpayers for the same offence.

Article 13 of the Constitution of the Islamic Republic of Pakistan, provides protection against double punishment for the same offence. The superior courts in number of cases held that double jeopardy is unconstitutional, the PTBA said.

It said that the members of PTBA are afraid that in the presence of Section 182A of the Ordinance, we would not be able to persuade any person to file return after the due dates of filing of return, which have already passed.

The tax bar said that the provision of the law instead of encouraging potential taxpayers to become filer; would surely discourage them.

It will be another disaster like the provision of Section 214D of the Ordinance, which created huge pendency of tax audit cases approx. 1.2 million and finally the government created facility for the existing taxpayers by introducing Section 214E of the Ordinance for disposal / closure of such cases in the Finance Supplementary Amendment Act, 2018.

22/11/2018

ISLAMABAD: The Federal Board of Revenue has asked over one million late filers of tax returns to pay penalty or higher tax for automatic closure of audit proceedings.

The late filers of returns for tax years 2015, 2016 and 2017 were selected for audit under Section 214D of the Income Tax Ordinance. The facility for availing automatic closure of audit under Section 214E is available till Dec 31 and approximately 1,022,000 taxpayers will benefit from it.

Moreover, Section 214D under which late filers were automatically selected for audit has been deleted from the Income Tax Ordinance 2001 in the Finance Act 2018 due to undue hardship faced by new taxpayers and to facilitate the process of broadening of tax base.

FBR Member Taxpayers’ Audit Nausheen Javaid Amjad announced in a statement that those taxpayers who were automatically selected for audit under Section 214D due to late filing of returns should now avail the facility by paying penalty or higher tax than previously filed return — whichever is applicable under the law.