Federal Board of Revenue (FBR) is all set to assess banking information of potential taxpayers under section 165-A of Income Tax Ordinance, 2001 by October, 2013; it is learnt here on Monday. According to sources, the board is going to kick off the assessment of banking information by October, 2013, despite having strong resentment from business fraternity. They dispelled the impression of assessment of every bank account, saying that "This is wrong perception that every bank account to be monitored; we will only assess bank accounts of chronic defaulters, non-filers, tax evaders and tax dodgers." Replying to a question, they said that the deadline for filing of income tax returns was September 30th and individual, AOPs, who failed to file their income tax returns before it would be fallen under the ambit of section 165-A of Income Tax Ordinance, 2001. Moreover, the sources said that they had 0.493 million industrial and commercial electricity connections in Karachi but only 80000 persons filed returns. They further said that this provision aimed at targeting potential taxpayers and the persons, who filed returns regularly, were beyond the limit of this provision. Answering to another question, they said, "Section 165-A of the Ordinance must be enforced across the board and if the authority dragged big fishes out of this newly inserted section, this effort would be a complete failure." Meanwhile, business fraternity termed this move as harsh measure, requesting the authority to withdraw it. They said this provision would escalate the level of harassment in tax departments as it was impossible that section 165A providing access to banks would only be used by Chairman and Member FBR. The businessmen were of the view that the government move would not only encourage depositors to withdraw capital from banks but also blemish all efforts being done for documented economy. Similarly, banks have expressed strong resentments and passed resolution against this provision. The banks are of the view that section 165-A of Income Tax Ordinance, 2001 is against the Constitution of Pakistan as no section can supersede the Constitution but section 165-A of the of Income Tax Ordinance, 2001 is against section 199 of the Constitution.
Posted on: Tue, 20 Aug 2013 17:06:49 +0000
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