Tax authorities empowered to enforce tax returns of past years

Shahnawaz AkhterWeb Editor

02nd Jul, 2021. 07:24 pm
FBR

KARACHI: The Federal Board of Revenue (FBR) on Friday said that the tax authorities have been empowered to enforce income tax returns of any past year in cases where foreign income or assets are not disclosed.

The revenue board said, under the law, the tax authorities are empowered to enforce annual returns of income for the past five years. However, this limitation is 10 years in case a person is a non-filer.

A circular issued by the FBR said through the Finance Act, 2021, a major amendment has been introduced in Section 114 of the Income Tax Ordinance, 2001.

“Now it has been provided that this time [the] limitation shall not be applicable to a person who has foreign income or foreign assets,” the FBR added.

Necessary changes have been introduced by adding proviso to sub section sub section (5) of section 114 of the ordinance.
The revenue board also said the Section 114 enumerates persons who are required to file returns under law.

“Now, the FBR with the approval of the minister in-charge has been empowered to notify persons or classes of persons who are required to file the return of income,” it added.

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