The Federal Board of Revenue (FBR) on Friday extended the deadline for updating taxpayer information until June 30, 2021.
FBR issued Circular No. 14 of 2021 March 26, 2021, to extend the date of renewal of the taxpayer profile from March 31, 2021 to June 30, 2021.
The date has been extended with a request for tax restrictions that coronavirus cases were on the rise and most offices were operating at 50% capacity.
Updating the profile of all taxpayers registered under Section 181 of the Income Tax Ordinance, 2001 and other conditions specified by the Federal Board of Revenue (FBR) is a required requirement under Section 114A of the Ordinance.
In Finance Act, 2020, Section 114A is introduced to make the review profile binding to the following persons:
(a) every person applying for registration under section 181;
(b) every person who earns less than the head tax, “business income”;
(c) everyone whose income is less than the final tax;
(d) any non-profit organization as defined in subsection (36) of section 2;
(e) any trust or welfare fund; or
(f) any other person determined by the Board.
The FBR described a recently introduced section: “The complexity of return forms is an example of the complexity of tax law. However, there is a great need to simplify the return forms without compromising on the details required to ensure the accuracy of the published version. ”
The FBR said that instead of trying to get all the right information on tax returns, a new section could be set up where taxpayer information could be stored so that the taxpayer could take the correct information.
It states that persons who have registered before September 30, 2020, and receive business or income through the final tax, trusts, welfare organizations, non-profit organizations, and other persons defined by FBR are required to submit a profile on or before December 31, 2020, which has not been extended until -March 31, 2021.
Persons who receive their registration after September 30, 2020, are advised to submit that profile within 90 days of registration. In the event that there is a change in the details, those people will update their profile within 90 days of the change of details. The profile contains information relating to revenue in respect of bank accounts, communications used, business premises including all production, storage, or retail outlets operated or leased by the taxpayer, the types of businesses, and other information that may be provided by FBR.
FBR stated that if a person fails to provide or renew a taxpayer profile within a reasonable time or period extended by FBR under Section 214A, that person will not be included in the active taxpayer list for the last tax year ending before the date specified above or the date extended.
However, when filing or updating the profile, such persons will be allowed to be included in the list of active taxpayers in the case of a tax liability of Rs20,000 in the case of a company, Rs10,000 in the case of a corporation and Rs1,000 in the case of an individual.
In addition, the fine for non-filing or non-renewal of the profile is also increased at a rate of Rs2,500 per day non-payment of less than the minimum fine of Rs10,000.
Source: PkRevenue