September 07, 2006	Thursday	Sha'aban 13, 1427

KARACHI, Sept 6: The Central Board of Revenue has made it mandatory for taxpayers to submit copy of their Computerized National Identity Cards (CNIC) along with tax returns for the tax year 2006. The last date for filing of tax returns is September 30.

Although tax bars of the country have shown some reservation about the condition of CNIC and felt that this would create problem for the taxpayers, the CBR did not oblige their demand on the ground that already a lot many deficiencies and short-documents are witnessed in tax returns.

These views were also upheld by Habib Fakhruddin, member, Facilitation and Taxpayers Education of the CBR, during a recent discussion on filing of tax returns for 2006 with the Income Tax Bar Association Karachi (ITBAK). Several issues related to format of tax returns were also raised by ITBAK president Ali Rahim and other senior members of the bar.

The CBR member categorically rejected the demand by saying that there had been many other deficiencies and short-documents faced by the board in the tax returns filled by individuals as well as tax consultants.

He said in case taxpayers did not submit copy of CNIC along with tax return a temporary receipt would be issued and a three-day period would be given for complying with the condition.

Mr Habib complained that even National Tax Numbers (NTNs) are not correctly filled in the tax forms and this was all because of last minute haste.

Around 60 per cent of the tax returns annually filed by the taxpayers are normally invalid for one reason or the other and it is a normal practice of writing incorrect NTN, CNIC and sales tax registration numbers, he adds.

“So much so even addresses, residential or business, are not correctly written in the returns and the state of affair is so poor that even nature of business or employer’s addresses are not correct. This makes the situation all together very difficult for the CBR to issue assessment orders for such cases,” Mr Habib maintained.

He disclosed that even computation as well as total and sub-total of amounts did not telly and were commonly found in most of the tax returns. However, he said this could not be allowed to continue because automation and filing of returns through email would not be possible if such deficiencies were not removed.

He said that a lot had to be done to check such shortfalls and ensure that correct information and details were given in the tax returns.

The member said the Universal Self-Assessment Scheme (USAS) was a cornerstone of CBR’s reforms agenda in all categories of tax, including customs, income tax and sales tax. However, he said the taxpayers had forgotten that under the USAS audit was part and parcel of the scheme.

Mr Habib lamented that CBR’s voluntary compliance scheme was being widely misused. Consequently, it was being greatly felt that some deterrence should be used and detailed audit of cases was the only way out to check this menace. He also explained in details about the software and said that income tax assistant 2006 CD was also available. This could also help the taxpayers file their returns electronically, he added.