KARACHI, Sept 11: The Central Board of Revenue (CBR) expects to receive around 1.5 million tax returns this year from 2.2 million registered taxpayers holding National Tax Number (NTN). Last year the board received 1.2 million returns from 1.8 million registered taxpayers.

This was stated by Member Direct Taxes (CBR) Salman Nabi at a seminar on "New Income Tax Returns and Income Tax Ordinance 2001," Organized by the Income Tax Bar Association Karachi (ITBAK) on Saturday, at the Conference Hall of Income Tax Building.

He said that last year when the board received 1.2 million returns the remaining 0.6 million taxpayers became infructous on account of different reasons which may be death of a taxpayer, closure of business concern or even retirement of an employee.

Similarly, he said this year the CBR expected that out of 2.2 million registered taxpayers around 1.5 million would be filing their tax returns and the balance of 0.7 million would become infructous. Consequently, he said this would mean that around 0.3 million more returns would be collected this year.

Citing an example, he said that a person may get himself registered and get an NTN but this would not necessarily mean that he would also be filing a tax return because this may have been done by him just to meet the legal condition for purchasing a vehicle.

Member Taxpayers Education and Facilitation Habib Fakhruddin speaking on the occasion said that the other reason for lower collection of returns was that those who pay presumptive tax also stay out of it. However, he sought the help of the ITBA for receiving higher number of tax returns.

He said under given resources all-out efforts were being made to collect taxpayers data and up to July this year 0.5 million new taxpayers were netted which helped to bring the total to 2.2 million of NTN holders. Mr Fakhruddin admitted that incomplete information at national level was another factor for restricting the number of taxpayers.

He said that taxpayers should be asked to give complete data and information to facilitate proper working of the revenue collectors. Tax returns collected under Universal Self Assessment Scheme (USAS) only 24,000 had been selected for total audit.

Responding to a question, he said trust bodies would have to submit their tax on the returns meant for companies and hoped that this year assessment of returns would be faster and quicker as the National Bank of Pakistan was likely to provide online verification facilities. He further pointed out that paying 20 per cent higher tax for availing USAS was taxpayers' choice and not of the tax department.

However, the seminar witnessed some sharp and meaningful questions raised by a larger number of tax consultants with regard to new tax forms. A tax practitioner Jani Alam raised some objections with regard to Form 2-C (28 section) and said that it was against business and depreciation laws and that he may not use it. Another questioner said that Form 2-A did not cover certain points.

On this Salman Nabi said that one should know that a law never gives 100 per cent cover and the tax consultants know this fact, therefore, they have the capacity to know the crux of the fact. Above all, he said if all matters are given in the return forms it would have required larger space.

After receiving may other objections and queries from the participants, he said, "I give a policy statement that the forms made to facilitate and they may not necessarily meet all the situations or give cover to each and every point."

The member direct taxes further said that any circular or official document could be the best provided it covers all situations but then it would become cumbersome for a user.