Tuesday, 28 May 2024

Taxpayers to update profile to avoid penalty, and exclusion from ATL

FBR advised to Taxpayers to update their profile by March 31, 2021 to avoid any penalty and further exclusion of there name from Active Taxpayers List (ATL).

According to Federal Board of Revenue (FBR) last date for updating the profile was December 31, 2020. However, this date was then extended by the FBR up to March 31, 2021. Date was extended for assistance of the of taxpayers to avoid the penalty and exclusion of name from the ATL list.

Through the Finance Act, 2020 amendment was made in law and a Section 114A was inserted to Income Tax Ordinance, 2001 regarding updation of taxpayer’s profile. According to provisions of the income tax ordinance 2001, the following taxpayers are required to update their profile on IRIS, which is the official web portal of the Federal Board of Revenue (FBR):

List of taxpayers who are required to update their profile

a. every person applying for registration under Section 181;

b. every person deriving income chargeable to tax under the head ‘income from business’;

c. every person whose income is subject to final taxation;

d. any non-profit organization as defined in clause (36) of Section 2;

e. any trust or welfare institution; or

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f. any other person prescribed by the FBR.

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Following details and information are required for updating the taxpayer’s profile:

i. bank accounts;

ii. utility connections;

iii. business premises, including all manufacturing, storage or retail outlets operated or leased by the taxpayer;

iv. types of businesses; and

v. such other information which prescribed.

According to FBR, instead of requesting all the relevant information in the income tax return, a new section has been inserted for the purpose.

Registration before 30th September 2020

“Person who already registered before September 30, 2020 and are deriving business income or income subject to final taxation, trust, welfare institutions, non-profit organizations and such other persons prescribed by the board proposed to file a profile on or before December 31, 2020 (this extended up to March 31, 2021).”

Federal Board of Revenue |

Registration After 30th September 2020

The FBR further said that persons who obtain their registration after September 30, 2020. They need to furnish such a profile within 90 days of registration. In case of any change in particulars of information, such persons shall update their profile within 90 days of the change in particulars.

Profile contains information

“The profile contains information relevant to income regarding bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer, types of businesses and such other information as may be prescribed by the board.”

Federal Board of Revenue |

Circumstances of failure to update the profile

The FBR said: “If a person fails to furnish or update a taxpayer’s profile within the due date or time period as extended by the FBR under Section 214A of the Ordinance, such person will not include in the active taxpayers’ list for the latest tax year ending prior to the aforesaid due date or extended date.”

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Payment of Surcharge / Penalty

However, name inclusion in ATL depends upon filing or updating the profile. And upon payment of surcharge amounting to Rs20,000 in the case of a company. Rs10,000 in the case of an association of persons (AOPs) and Rs1,000 in the case of an individual. “Further, a penalty for non-filing or not updating of profile also proposed at the rate of Rs2,500 for each day of default subject to minimum penalty of Rs10,000,” the FBR added.

FBR | Federal Board of Revenue | Penalty | Surcharge | Active Taxpayer List | Profile | Income Tax Ordinance 2001 | Section 114A |



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