Dated: 10th April, 2015
The Secretary,
Ministry of Finance,
Government of Pakistan,
Islamabad.
Dear Sir,
Please refer to our previous letter No. SCCI/Budget/(15)/0167 dated 10th April, 2015 regarding Federal Budget Proposals 2015-2016. We are giving below few more suggestions for betterment in Inland Revenue Department.
Income taxpayers have been authorized to deduct the tax at source on different financial transactions. The tax so deducted by the authorized person has to be deposited with government treasury within the stipulated time and the photocopies of the paid challans are also given to the person on whose behalf the tax was deducted at source and deposited into government treasury. This procedure has certain anomalies for the persons whose tax has been deducted. The key problems are highlighted as under:
• The paid challans are not given to the tax beneficiary in time as a result of which tax reconciliation and submission of tax returns are unduly delayed without any negligence on the part of the person whose tax has been deducted.
• Sometime tax is not actually deposited into government treasury but the person whose tax has been deducted but not deposited is intimated that amount is deducted and tax paid challan is being sent very soon. But actually the person does not receive the tax paid challan and remains under the impression as if the tax has been paid and he is about to receive the tax paid challan. In such situation the sufferer has no remedy except time and again requesting the tax withholding agent for providing him the tax paid challan. This type of situation is very common in medium and small size businesses and it is pertinent to note that the number of assesses are more in small and medium size business than large scale businesses.
• Sometime unscrupulous tax withholding agent, if sitting at far off place, deduct the tax but actually do not pay into government treasury and enjoy this illegal money. This practice is basically at the weak system of the FBR.
• There are many other techniques which are used by the unscrupulous tax withholding agents who actually deduct the tax but do not pay into government treasury.
REMEDY TO THE ANOMALY.
1. The FBR should evolve a system whereby when the withheld tax is actually paid into government treasury the payment acknowledgment should also be electronically circulated to the e-mails under which the NTN was issued to the taxpayer. This procedure will enable the beneficiary of tax to actually see and verify timely that the tax deducted against his balance has been deposited into government treasury for his credit and he can use the tax paid challan for timely submission of tax return to the authorities. In case tax at source has not been deducted the concerned person can demand the refund of money not deposited into government treasury or can take any other remedial measure.
2. The correction of procedure will save the taxpayer from a big hassle and also collection of tax by FBR will improve a lot.
Assuring you of our best services,
Best Regards,
Manzoor ul Haq Malik
Chairman
Standing Committee for Coordination & Liaison
Former President-SCCI
Cc:
1. The Secretary, Ministry of Commerce, Government of Pakistan, Islamabad.
2. The Chairman, Federal Board of Revenue, Islamabad
3. Mr. Khalid Ansari, Principal Appraiser, Pakistan Custom, Karachi (With reference to your email 7th April, 2015)
