FBR avoids audits of 640,000 taxpayers by extending return filing date

FBR avoids audits of 640,000 taxpayers by extending return filing date

ISLAMABAD: Federal Board of Revenue (FBR) has avoided conducting around 640,000 audit cases by extending last date for filing income tax return for further 15 days.

FBR sources said that under Section 214D of Income Tax Ordinance, 2001 explains about automatic selection of audit.
According to the section: “(1) A person shall be automatically selected for audit of its income tax affairs for a tax year, if—
(a) the return is not filed within the date it is required to be filed as specified in section 118, or, as the case may be, not filed within the time extended by the Board [FBR] under section 214A or further extended for a period not exceeding thirty days by the Commissioner under section 119; or
(b) the tax payable under sub-section (1) of section 137 has not been paid.”
According to an official statement the FBR had received 608,587 returns for tax year 2017. There around 50,000 corporate returns that will be due by December 31, 2017 for tax year 2017. Whereas, the income tax returns filed for tax year 2016 are around 1.3 million so far, which means, excluding corporate returns, 641,341 non-filers, and fall under automatic selection of audit. This would be additional cases to those pending and FBR machinery is endeavoring to clear the backlog.
The FBR extended the last date for filing
In the statement issued a day earlier, the FBR dispelled the impression created by some reports appearing in sections of the press that the number of the returns received for the tax year 2017 has declined as compared to returns received for tax year 2016.
This impression is grossly misleading as only 352,022 returns were received upto November 1, 2016, whereas 608,587 returns have been received till November 1, 2017. This shows a substantial increase of 72 percent in the number of returns received during the same period of previous fiscal year.

Source: pkrevenue

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