FBR requires taxpayers to fulfill 14-point checklist

Pakistan, September 20, 2024: The Federal Board of Revenue (FBR) implemented a time limit condonation checklist for taxpayers who wanted to apply for the Sales Tax Act of 1990, as news by September 19 brought to light. 

Also read: FBR Reports 71% Increase in Tax Filers: FY24 Deadline Approaches

According to the details, the taxpayer must fulfill 14 of the 14-point checklist. The guidelines indicate a new way for taxpayers to delay under section 74 of the Sales Tax Act.

• A taxpayer facing delay should apply to the Inland Revenue (IR) Commissioner and mention the reason for the delay.
• In case of delay for more than 3 years, the commissioner will review the case and send recommendations to the board in a specific format.
• In addition, the commissioner will send the recommendations to the board in fifteen working days. In exceptions like more details required, more days could be needed.
• The board will review the recommendations and reject or accept the extension request. Moreover, the board will inform them of the taxpayer and commissioner’s decision.

The taxpayer must comply with the following 14 checklist points;

1. Ensuring that the taxpayer is properly registered with FBR.
2. Verifying a valid TIN or National Tax Number (NTN).
3. Maintaining detailed financial records, invoices, and documentation.
4. Submission of income, sales, or withholding tax returns on time.
5. Ensuring all due taxes are paid before the deadline.
6.  Next, proper reconciliation of sales tax declarations with records.
7. Deduction and deposit of withholding taxes where applicable.
8. Responding to FBR audit notices within the given timeframe.
9. Issuing sales and purchase invoices as per FBR regulations.
10. Providing annual statements or reports as required.
11. Timely rectification of any discrepancies in tax filings.
12. Declaration of relevant customs and excise details.
13. Compliance with all relevant tax laws and FBR circulars.
14. Keeping financial records for the required period for verification.

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