The filing of the declaration must be made compulsory for account holders
KARACHI: The Federal Board of Revenue (FBR) has been asked to make filing of tax return mandatory for account holders with turnover of Rs 2 million or more in a year.
The Foreign Investors Chamber of Commerce and Industry (OICCI), in its recommendations for the 2022/2023 budget, advised RBF and State Bank of Pakistan (SBP) to devise a framework to ensure all customers of financial institutions whose account has a turnover of more than 2 million rupees or more during the year, have filed a declaration of income and a statement of assets.
READ MORE: Unwarranted audit opinions annoy taxpayers
“This could be done by financial institutions by simply notifying the names/CNIC numbers of these customers to FBR without giving access to bank accounts,” he added.
The OICCI, in its tax base broadening proposals, stated that tax authorities should use technology, data analytics, including artificial intelligence tools, and make better/efficient use of the NADRA database and other documented sources to ensure that all employees are NTN holders and “registrants”. », with submission of annual income/asset declarations and asset reconciliation statements.
READ MORE: Foreign investors demand tax refund adjustment
Art showrooms, hospitals where doctors practice, hotels and other public places holding large receptions for fashion houses and designers, sale of designer/branded dresses, airlines, agencies travel, etc. must provide the names and addresses of the respective persons involved in these activities. activities at RBF on a quarterly basis.
Once the FBR receives the above information, it should be proactive and pursue potential taxpayers by sending them tax return forms requiring them to file tax returns – rather than waiting for the tax returns to be filed. produced.
READ MORE: OICCI presents recommendations to eliminate illicit trade
OICCI strongly recommended eliminating the culture of amnesty programs as it discourages honest taxpayers.
As Pakistan is a signatory to the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, which became operational from September 2018, regular coordination should be carried out with the competent authorities of the countries, considered like tax havens to hide illegal wealth, to get information. sharing, and proven cases of tax evasion shared publicly.
READ MORE: OICCI urges harmonization of sales tax rates
Appropriate laws should be enacted to enable the government to seize local assets, in equivalent value, or levy appropriate taxes, if a person holds any kind of assets outside the country for which the source of income does not exist. could not be established.