FBR urged to fix flaws in its automated income tax-issuance system.

The Pakistan Tax Bar Association penned a letter to Amjad Zubair Tiwana, Chairman of the Federal Board of Revenue (FBR). It expressed worry about an ongoing issue with the automated system. This problem involves the system mistakenly sending income tax notices to deceased individuals and businesses that have ceased operations. Also, they raised their concern in an article on December 28.

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Despite previous notifications to the FBR about business closures or the passing of individuals, the automated system persists in sending out these notices. PTBA President Anwar Kashif Mumtaz urged the FBR to update its automated system. To ease the challenges faced by the deceased’s relatives and companies that have concluded their operations.

The association proposed improvements to the system. They suggested that if a notice under Section 117 of the Ordinance, along with the tax return, has already been submitted. In cases of an Association of Persons (AOP) dissolution, company winding up, or an individual’s passing. No further notice should be issued for filing tax returns. MorePTBA recommended that if the department needs additional information related to the disclosure under Section 117, they can issue a notice under Section 117 as necessary.

Moreover, the letter emphasized the importance of considering this recommendation to reduce hardships. And to save the time and efforts of field officers from repetitive tasks. PTBA also referred to Section 114 in the Ordinance, which gives the commissioner the power to send notices to individuals. Who haven’t filed their income tax returns for the present or past tax years.

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Furthermore, the association pointed out that despite complying with the Ordinance by submitting notices under Section 117 and filing tax returns. Moreover, the system, post the implementation of IRIS, continued to generate notices for future tax years even for taxpayers who had already fulfilled their obligations.

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