FBR starts targeting High Net Worth Individuals, Notices to be sent to 135,000 person

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FBR starts targeting High Net Worth Individuals, Notices to be sent to 135,000 person

The Federal Board of Revenue (FBR) has decided to issue as many as 134,848 notices to high net-worth individuals throughout the country in order to convince them to electronic-filing of an income tax return for 2019.

FBR issued these notices to unregistered individuals according to their respective dedicated zones of the Broadening of Tax Base (BTB) created at Regional Tax Office (RTO) Islamabad, RTO Faisalabad, RTO Rawalpindi, RTO-II and RTO-III Karachi and RTO-II Lahore.

In addition to these zones, the FBR has also created a range of Broadening of Tax Bases (BTBs) in the closing thirteen RTOs to circulate notices to the unregistered individuals. The BTB is especially designed to carry unregistered individuals into the tax net.

The government authority has been successful in expanding the tax base during its first twelve months, as this information confirmed that around 783,039 new taxpayers filed returns with the tax dept as a result of a number of schemes, including tax amnesty.

FBR has circulated the maximum number of notices in Lahore. The RTO Lahore issued 37,083 notices to unregistered individuals. However, the FBR has no longer compiled statistics on the compliance resulting from the issuance of these circulars.

The Regional Tax Office Rawalpindi has circulated the second maximum number of notices throughout the period underneath review. The BTB dept at RTO Rawalpindi circulated 21,248 notices so far. Opposite to this, the BTB dept in RTO Islamabad has circulated 4,600 notices so far which is so much below the proper potential.

The BTB workplace in Peshawar has circulated 15,800 notices to unregistered individuals to convince them to pay the tax. After Lahore, Sargodha is the place where 15,560 notices had been issued to unregistered individuals.

The RTO has issued and circulated notices to 10,467 unregistered individuals in Karachi. Further information showed that RTO Abbottabad has circulated 8,160 notices to unregistered individuals. This is the maximum number when considered the measurement of the RTO and its jurisdiction.

A senior tax reliable said the FBR is compiling records to examine the compliance of these notices with respective RTOs. “The respective RTOs are working to discover how many of them get registered in the wake of notices,” he said.

More records and information show that RTO Hyderabad circulated 5,198 notices to unregistered individuals, observed as 5,795 notices in Sukkur city. As part of the broadening of the tax database, the BTO workplaces circulated 1,422 notices in Bahawalpur, 363 notices in Faisalabad, 476 notices in Gujranwala, 2327 notices in Multan, 2,820 notices in Quetta, 1,777 notices in Sialkot and 1,752 notices in Sahiwal, respectively.

The total count of Tax Return filers in the last year reached 2.561 million as compared to 1.514 million over the previous year, indicating an increase of 69%.

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