FBR empowered to take harsh action against non-filers

KARACHI: The federal government has legislated to empower the Federal Board of Revenue (FBR) to take harsh action against persons who are required to file income tax returns but remain non-compliant.

The FBR on Friday uploaded Tax Laws (Third Amendment) Ordinance, 2021. Through the latest legislation, the government introduced certain amendments to the Income Tax Ordinance, 2001.

A new section 114B has been inserted to the Income Tax Ordinance, 2001 to empower the tax authorities enforce filing of tax returns.

According to the section, the revenue board has been empowered to issue an income tax general order, which will contain names of those persons, who are not appearing on the Active Taxpayers List (ATL) but are liable to file returns.

The income tax general order may entail any or all of the following consequences for the persons, including disabling of mobile phones or mobile phone SIMS; discontinuation of electricity and gas connections.

The tax authorities will only allow restoration of mobile phones, mobile phone SIMS and connections of electricity and gas in case where the person has complied with the conditions, including the return has been filed; or the person was not liable to file return under the provisions of the Income Tax Ordinance, 2001.