FBR has started an intensive effort to Broaden the Tax Base through using the National Data Warehouse and has finalized a detailed implementation plan in this regard.
The most important step in this direction has been the decision to use the National Data Warehouse (NDW) for identification of new taxpayers who can be brought into the tax net. The NDW would be used in various ways for this purpose including its usage for acquisition of data through profiling loading and Data mining & usage. Once this is done, respective RTOs would be sent the details and electronic profiles of these potential taxpayers so that BTB notifications are issued by the concerned tax commissioners. All the monitoring and control of the process would be automated and system based. FBR has also upgraded its call centre facility for the facilitation of the taxpayers. Linkages with 3rd party sources, including provincial revenue authorities have also been established for effective implementation and monitoring.
To strengthen the enforcement mechanism for the BTB plan, various decisions have been made by FBR which includes initiation of statutory proceedings against persons who fail to respond to Outreach notifications through issuance of notices under section 114 of the Income Tax Ordinance, 2001. In case of taxpayer’s persistence on non-compliance, provisional assessment would be finalized and the taxpayer would still have the option to file a return accompanied by a wealth statement and reconciliation of wealth statement within the period of sixty days whereby the provisional assessment order will be automatically vitiated. If the taxpayer does not file the return and required documents within sixty days, the tax liability raised as per the provisional assessment order would become final and will be recoverable and, if necessary, penal and prosecution proceedings, which may culminate in imprisonment and imposition of fine, will also be initiated in selected cases for creating a credible deterrence.
Riffat Shaheen Qazi
Member FATE/ Official Spokesperson FBR