Pakistan Tax crackdown bring the high and mighty into the net Only 26.17pc filed tax returns in ’12
- 11 years ago
A total of 2,499,038 taxpayers did not file their returns for the tax year 2012, official figures revealed.
According to Federal Board of Revenue figures, only 26.17pc or 885,999 taxpayers filed their income tax returns as against 3,385,038 NTN holders.
A total of 665,896 taxpayers from Karachi and 491,932 from Lahore did not file returns.Of the 1,604 companies registered with three large taxpayers units (LTUs) of the country, 192 avoided filing returns.
The minimum penalty for not filing returns/statements/wealth statements starts from Rs5,000 and can be as high as 25 per cent of the tax payable in a year. The non-filer would either declare his total income for assessment of tax in a year or tax official would declare it ex-parte.
This revelation is the outcome of an internal investigation and analysis of tax returns filed in 2012.
The drop in filling of returns shows a whooping dip in tax compliance in the poor tax system of the country.
In contrast to increase in perks and privileges of the officials, the tax compliance level has fallen to 26.17pc in 2012 from previous years 47. 3pc. The tax-compliance in the tax year 2010 was 65pc.
The total number of NTN holders in 2012 stood 3,385,038 as against 3,168,310 in 2011, showing an increase of 6.84 per cent. These also include dormant and dead cases.
In comparison to last year, filing of returns fell to 885,999 in 2012 from 1,501,630 in tax year 2011, showing a drastic decline of 40.99 per cent in filing of tax returns.
This means that as many as 615,631 avoided filing of returns in comparison to last year.
Senior Member Inland Revenue Service Israr Rauf confirmed drastic drop in filing of returns in tax year 2012.
He said that the FBR has identified non-filers and sent the data to 18 regional tax offices (RTOs) and three LTUs.
The details have been sent to concerned offices for issuance of notices to non-filers.
“We don’t need to wait for approval of tax amnesty schemes or approval by the parliament,” Mr Rauf said.
All officers have been asked to launch crackdown against tax-evaders. He said it would improve tax compliance.
Data shows that 103 big companies in Karachi did not file returns, followed by 58 in LTU Islamabad and 31 in Lahore.
The total registered taxpayers with the LTU Karachi are 848; LTU Lahore 353 and LTU Islamabad 403.
The city emerged a major city where the number of non-files stood at 665,896 in tax year 2012. Of these, 330,635 taxpayers fall in the jurisdiction in RTO-I; 42,010 RTO-II and 293,251 in RTO-III, respectively.
In Lahore, 224,383 taxpayers who did not file tax returns fall in RTO-I and 267,549 RTO-II, respectively.
The city-wise break up showed that 270,006 taxpayers did not file tax returns in Rawalpindi; 186,136 in Faisalabad; 168,008 in Multan; 145,598 in Peshawar; 75,846 in Gujranwala and 41, 085 in Quetta.
In Quetta, only 9,940 tax-payers, out of 50,179, filed returns.
According to Federal Board of Revenue figures, only 26.17pc or 885,999 taxpayers filed their income tax returns as against 3,385,038 NTN holders.
A total of 665,896 taxpayers from Karachi and 491,932 from Lahore did not file returns.Of the 1,604 companies registered with three large taxpayers units (LTUs) of the country, 192 avoided filing returns.
The minimum penalty for not filing returns/statements/wealth statements starts from Rs5,000 and can be as high as 25 per cent of the tax payable in a year. The non-filer would either declare his total income for assessment of tax in a year or tax official would declare it ex-parte.
This revelation is the outcome of an internal investigation and analysis of tax returns filed in 2012.
The drop in filling of returns shows a whooping dip in tax compliance in the poor tax system of the country.
In contrast to increase in perks and privileges of the officials, the tax compliance level has fallen to 26.17pc in 2012 from previous years 47. 3pc. The tax-compliance in the tax year 2010 was 65pc.
The total number of NTN holders in 2012 stood 3,385,038 as against 3,168,310 in 2011, showing an increase of 6.84 per cent. These also include dormant and dead cases.
In comparison to last year, filing of returns fell to 885,999 in 2012 from 1,501,630 in tax year 2011, showing a drastic decline of 40.99 per cent in filing of tax returns.
This means that as many as 615,631 avoided filing of returns in comparison to last year.
Senior Member Inland Revenue Service Israr Rauf confirmed drastic drop in filing of returns in tax year 2012.
He said that the FBR has identified non-filers and sent the data to 18 regional tax offices (RTOs) and three LTUs.
The details have been sent to concerned offices for issuance of notices to non-filers.
“We don’t need to wait for approval of tax amnesty schemes or approval by the parliament,” Mr Rauf said.
All officers have been asked to launch crackdown against tax-evaders. He said it would improve tax compliance.
Data shows that 103 big companies in Karachi did not file returns, followed by 58 in LTU Islamabad and 31 in Lahore.
The total registered taxpayers with the LTU Karachi are 848; LTU Lahore 353 and LTU Islamabad 403.
The city emerged a major city where the number of non-files stood at 665,896 in tax year 2012. Of these, 330,635 taxpayers fall in the jurisdiction in RTO-I; 42,010 RTO-II and 293,251 in RTO-III, respectively.
In Lahore, 224,383 taxpayers who did not file tax returns fall in RTO-I and 267,549 RTO-II, respectively.
The city-wise break up showed that 270,006 taxpayers did not file tax returns in Rawalpindi; 186,136 in Faisalabad; 168,008 in Multan; 145,598 in Peshawar; 75,846 in Gujranwala and 41, 085 in Quetta.
In Quetta, only 9,940 tax-payers, out of 50,179, filed returns.