WITH the government trying to collect taxation revenue, it should also pay attention to the woes of law-abiding taxpayers who are struggling to deal with the flawed Integrated Risk Information System (Iris) of the Federal Board of Revenue(FBR). There are issues within the system that require urgent attention to facilitate a smooth experience for the taxpayers.
Recently, I encountered certain clients who faced difficulties in filing returns and declaring assets. Upon attempting to register them, I discovered they were already registered, but the mobile phone numbers and emails associated with their accounts were inaccessible. Someone had registered them without their knowledge, using a new mobile number and email not in access of my clients to exploit the lower tax rate for filers in contrast to non-filers, thereby pocketing the tax savings.
This incident highlights a critical flaw: registration can be completed with just a CNIC, allowing anyone to register others by using their own contact information. And we know how easy it is to access and know others’ CNIC numbers in a country where its photocopy is required for one reason or another.
Although it is mandatory that the registration number be associated with the same CNIC, this rule is not effectively enforced. Consequently, many people find themselves registered with incorrect data. In my clients’ case, their Iris account showed zero income and assets declared for several years.
To rectify the records, I had to write an application to the relevant Regional Tax Office (RTO) as required by Section 114(6)(ba) of the Income Tax Ordinance. After approval, I could amend the returns. This issue affects thousands of individuals, demonstrating a significant oversight by the FBR’s information technology (IT) team. Ensuring that the verification number is registered to the person’s CNIC will prevent such problems.
Moving on, another issue is the process of password recovery. One can see FBR offices swamped with applicants as well as lawyers seeking to recover their clients’ credentials. My clients from Rahim Yar Khan had never registered with their respective numbers or emails, so the data was inaccessible, necessitating a recovery process.
The only way out was to submit an affidavit on a stamped paper of Rs300 to the relevant official sitting in Bahawalpur to recover the credentials. This process, naturally, is burdensome for thousands of people, especially those not residing within the ‘tax region’, resulting in significant travel costs or attorney fees.
Transitioning to an IT-based solution, such as one-time password (OTP)-based data recovery with a mobile number registered against the filer’s CNIC, will streamline the whole process, eliminating the need for travel and paperwork.
The relevant FBR authorities should help the taxpayers have a smooth experience while filing their returns.
Ahmad Kamal Mazari
Rahim Yar Khan
Published in Dawn, July 28th, 2024