Non-compliance of Tax Registration Enforcement Initiative: FBR seeks powers of Parliament to block CNICs
The Federal Board of Revenue (FBR) has decided to amend the provisional assessment procedure under section 122C of the Income Tax Ordinance 2001 for suspension of the computerised national identity card numbers (CNICs) of potential individuals, who would not avail the Tax Registration Enforcement Initiative-2012.
Sources told Business Recorder here on Monday that the Board has sought powers of Parliament to block CNICs of the potential individuals against whom provisional assessment under section 122C of the Income Tax Ordinance 2001 would be started after expiry of the Tax Registration Enforcement Initiative-2012.
The section 122C of the Ordinance 2001 is related to the provisional assessment of the tax dodgers and tax evaders, who failed to reply to the return filing notices of the Board. Under the registration scheme to be announced by the FBR, any person who does not pay the Registration Tax required to be paid under the scheme shall be liable to finalisation of provisional assessment under Section 122C of the Income Tax Ordinance 2001 and all the provisions of the Income Tax Ordinance 2001, shall apply accordingly. During the pendency of proceedings under Section 122C and the resultant recovery proceedings, the person shall be liable to suspension of his or her CNIC, placement of his or her name on the Exit Control List (ICL), freezing of his or her bank accounts and blocking of his or her mobile phone SIMs, after being provided an opportunity of hearing within a reasonable time.
In this regard, the FBR has proposed to introduce a new ‘120B Registration Tax’ after section 120A of the Income Tax Ordinance 2001. At present, the tax department issue notices to the non-filers of income tax returns under section 114 of the Income Tax Ordinance 2001. After providing them ample opportunity to file returns, the department serves notices to the non-compliant wealthy persons under section 122 (c) of the Ordinance 2001. Moreover, the FBR has provided 60 days period to respond to notices for filing of returns under section 122 (c) of the Ordinance 2001. After no-reply from these non-compliant persons, the tax department can pass provisional assessment orders against non-compliant persons after completion of legal formalities, they added.
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