KARACHI, June 10: Small traders appear worried over the Income Tax Department's another move. The department has issued notices to traders to submit certain information/documents for conducting audit of income tax for the year 2003.
Taxation officers of Income Tax, who had served notices to small traders, now seek details of opening and closing stocks, sales and purchase, salaries, name and NIC nos. of employees, breakup of capital, document of property, copy of bank statement, sale agreement of property sold out and personal expenditure statement.
Chairman Small Traders' Committee of the KCCI Abdul Majeed Memon and chairman Alliance of Market Association Atiq Mir said that small shopkeepers were still receiving notices from tax officials of Income Tax for conducting audit of income tax, urging taxpayers to submit information/documents for completion of audit of tax year 2003.
Mr Memon said that he had requested a Regional Commissioner of Income Tax on Wednesday to put a temporary hold on issuance of audit notices to the traders or postpone it till the announcement of budget as such notices were causing harassment in the market.
He said the commissioner, however, declined to oblige and said that he could not interfere in the policy matter of the Central Board of Revenue (CBR) as he had not received any intimation or directive from the CBR to stop issuing such audit notices.
Traders were assured through press that the CBR had taken notice of the situation and had directed the tax officials not to issue notices to the taxpayers for seeking further information or documents with regard to income tax return filed under the Universal Self Assessment Scheme (USAS) for the year 2003.
Atiq Mir said that the issue had been taken up with the CBR but the taxation officials were bent upon issuing notices to traders. He said that the Income Tax Department had previously decided to go for physical audit or on spot checking of shops, godowns etc., of traders (taxpayers).
After facing traders resentment they have come out with a new plan to create harassment among business community. "If the CBR had directed the tax officials to avoid issuing notices, it means that these officials are outrightly violating the orders from their high-ups and they still hold discretionary powers to work on their own," he added.
President Anjuman Tajiran Marriott Road Mohammad Rafiq Jadoon said that besides audit notices traders were also receiving reminders from tax officials to bring informations/documents in their offices otherwise legal action would be taken.
He warned that small traders were prepared to opt for extreme action if the tax officials continue to create problems for the small shopkeepers. Angry small shopkeepers from all parts of the city markets had gathered at the KCCI auditorium on Wednesday to inform the KCCI president, Siraj Kassam Teli, about the problems being faced by them relating to issuance of such audit notices.
KCCI president had persuaded small traders not to take any extreme action, as they have refused to entertain any notice for audit. However, the KCCI chief made it clear in the meeting that the chamber would not be responsible for the consequences if the small traders opt for direct action in case the notices were not withdrawn.
Mr Teli feared that if this kind of harassment was not halted the number of returns would go down significantly in future. He urged the CBR chairman to order the Regional Commissioners of Income Tax to withdraw the notices and start dialogue with the representatives of small traders.
He said the selection of assessees for audit under USAS was against all norms of justice and the provisions of Income Tax Ordinance as well in violation of the assurances given by the CBR chairman during his visit to the chamber on March 30, 2004.
"Despite these assurances, notices to almost all taxpayers, particularly small ones, have been issued, requiring plethora of documents and information, which is very difficult for small traders to maintain," he added.