
FBR Clarifies the False News That the Finance Bill allowed non-filers to purchase immovable property | Budget 2019-2020 ||
Federal Board of Revenue (FBR) has strongly refused the false news that the new Finance Bill has allowed the non-filers persons to purchase immovable property or vehicles of every capacity.
In a clarification by FBR, it said that the whole mechanism of recognizing a non-filer has been given away with in the new Amended finance bill provisions.
Now under the Income Tax Ordinance 2001, every citizen having taxable income will submit his annual Income Tax Returns and, in case of failure of submission of Returns if it will be involved in material transactions, they will have to pay 100% excess tax at withholding stage and will also be assessed to tax and his income will be treated as concealment of income and it will be liable to penalties and further prosecution.
complete mechanism is further reproduced here as under,
“SPECIAL PROVISIONS FOR PERSONS NOT APPEARING ON ACTIVE TAXPAYERS LIST Through Finance Act, 2014, a concept of ‘filer’ and ‘non-filer’ was introduced whereby a list of ‘filers’ was issued by the Federal Board of Revenue (FBR) from time to time to include such taxpayers who have filed their returns for latest tax year. Enhanced withholding tax rates were prescribed for ‘non-filers’ besides certain special withholding tax provisions which were only applicable on ‘non-filers’. The Finance Bill proposes to do away with the concept of ‘filer’ and ‘non-filer’ and instead introduces provisions to deal with such persons whose names do not appear on Active Taxpayers List (ATL). As a result of such special provisions, the effect shall be as under: a)The rate of withholding tax for certainprovisions, which currently prescribe anincreased rate for non-filers, is proposed tobe enhanced by 100% for persons notappearing on ATL with procedure forprovisional assessment and penaltyproceedings if such persons fail to filereturn of income for respective tax year. Onfiling of returns, the taxpayers are entitledto claim refund of withholding tax inexcess of their tax liability. These provisionsare contained in the Tenth Schedule.b)Following tax withholding provisions remainoutside the ambit of Tenth Schedule havingbeen already applicable on persons notappearing in ATL (currently termed as non-filers):”
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