04 June 2004	Friday	15 Rabi-us-Saani 1425

KARACHI, June 3: The Central Board of Revenue has asked tax officials not to issue notices to taxpayers seeking further information or documents with regard to returns filed under the Universal Self Assessment Scheme (USAS) for the tax year 2003.

In a letter addressed to all the regional commissioners of income tax, the CBR took serious note of the fact that tax officials have issued letters to taxpayers asking for removal of deficiencies and filing of short documents for the tax year 2003.

"This is a clear violation of the policy decision of the CBR because it was decided that no correspondence would be made by the department with the taxpayers with regard to short documents for the tax year 2003," the CBR letter maintained.

The CBR warned the officials that in case of violation, strict action would be taken. With regard to notices already issued, the CBR directed that the matter should not be pursued or pressed further.

When contacted, some senior officers of the tax department expressed their surprise over the issuance of these directives. They said it would result in an incomplete data of an assessee.

These officials, on the condition of anonymity, said that in Karachi, around 40 to 50 per cent returns of the non-companies sector normally remained incomplete, and in Punjab the same went up to 70 per cent.

"If this is the case scenario, then as to how the tax officials will be in a position to collect due revenue, and under what yardstick the assessment could be made" However, some tax advisors welcoming the decision said this would help build confidence between the tax collectors and the taxpayers.

They said that it was an accepted theory all over the world that tax collection was the most difficult job and always required some awareness in a society. "It will be interesting to witness the outcome of such a sweeping policy change in the CBR's history, which hitherto has been based on a theory of using pressure tactics," they added.