ISLAMABAD, May 14: As many as 3,174 corporate taxpayers out of total 9,962 have filed nil returns with the income tax department, showing no income in their businesses during the current tax year. Official data available with Dawn show that only 3,202 corporate taxpayers have shown income in their returns filed with the income tax department during the period under review.
Further analysis confirmed that out of 9,962 corporate taxpayers, around 3,586 have shown loss in their businesses in the returns filed this year. The statistics revealed that only 3,202 corporate taxpayers were contributing a major portion of income tax to the national kitty out of total 45,000 companies registered with the Security and Exchange Commission of Pakistan (SECP).
The analysis was carried out at a centralized data captured centre established last year by the CBR as part of the reforms process. Out of 3,202 corporate taxpayers, only two have shown their income beyond Rs10 billion; two corporate taxpayers in the range of Rs5 billion to Rs10 billion; two in the range of Rs3 billion to Rs5 billion; six in the range of Rs2 billion to Rs3 billion; and 14 in the range of Rs1 billion to Rs2 billion in their returns filed this year.
Around 1,196 corporate taxpayers out of 3,202 have shown their income in the range of Rs1 million to Rs500 million. Of these, 294 corporate taxpayers have shown income in the range of Rs1 million to Rs2 million; 170 in the range of Rs2 million to Rs3 million; 150 in the range of Rs3 million to Rs5 million; 200 in the range of Rs5 million to Rs10 million; and 116 in the range of Rs10 million to Rs20 million.
The statistics reveal 29.04 per cent of the total corporate taxpayers have declared their income in the range of Rs1 million to Rs20 million in the returns. The data show that 1,980 corporate taxpayers out of 3,202 have shown their income in the range of Rs100,000 to Rs1,000,000.
This shows that 61.84 per cent corporate taxpayers have declared their income below Rs1 million in the returns filed this year, which means that they have mostly understated their income.
Of these 1,980 corporate taxpayers, 786 have declared their income up to Rs100,000; 332 in the range of Rs100,000 to Rs200,000; 215 in the range of Rs200,001 to Rs300,000; 291 in the range of Rs300,001 to Rs500,000; and 356 in the range of Rs500,001 to Rs1,000,000.
Similarly, out of 3,586 corporate taxpayers who have shown loss in their returns, around 1,830 were in the range of Rs100,000 to Rs1,000,000. Of 3,586 corporate taxpayers, around 1,732 have declared loss in their businesses during the year under review. There were only 24 corporate taxpayers who have declared loss in their returns, which stood in the range of Rs1 billion to over Rs10 billion.
