FBR’s system glitches deny NPO, trust to change status

KARACHI: Errors in the online system of the Federal Board of Revenue (FBR) are denying applications for processing the change of status from the association of persons (AOPs) to non-profit organization (NPO) or a trust.

To resolve the issue, the Pakistan Tax Bar Association (PTBA) wrote a letter on December 3, 2021 to the FBR chairman, seeking instructions to the relevant quarters.

The PTBA, which is the apex tax bar of the country, apprised the FBR chairman that the amendments were made through the Finance Act, 2013 regarding NPOs and trust.

“Earlier to this amendment, such organisations were assigned status of AOPs by the FBR. After the amendment, the status of all such organisations should be changed from the AOP to company.

“But due to systematic error existing in the IRIS; a number of such organisations still have the status of AOP in the system.”

The tax bar also said that a number of such organisations have applied for approval under Section 2 (36) and Section 100 of the Income Tax Ordinance, 2001 but those had not been processed due to the reason that these organisations were not appearing in the folder of the relevant commissioners of the Corporate Tax Offices.

The commissioner Inland Revenue has been empowered to approve or change the status.

The tax bar demanded the FBR chairman to issue instructions to Pakistan Revenue Automation Limited (PRAL) to change the status of all such organisations from AOP to company, so that the relevant commissioners can process the applications filed under the relevant provisions of the law.

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