ISLAMABAD: To detect billions of rupees black money invested in real estate sector, the Federal Board of Revenue (FBR) has ordered its all 18 regional tax offices for mapping of newly constructed and under construction commercial buildings in the entire country to bring their owners into the tax net.
Member Inland Revenues Shahid Hussain Asad informed the National Assembly Standing Committee on Finance which met at Parliament House on Friday with Fauzia Wahab MNA in the chair here that field formations have been instructed to hold visit of each area of their jurisdiction and compile the list of commercial buildings recently constructed or under construction, number of shops have been constructed and how many have been rented out, who are running what kind of business in these shops and buildings and buildings under construction with construction plan along with the names of the owners of these commercial buildings
He explained to the committee that people are more interested in making investment in those areas, which are still enjoying tax relaxation, and real estate is one of the major areas where majority of the investment is going as the investors strongly feel that their investment is safer.
He further informed that this task of mapping of the commercial buildings would greatly help hunt new taxpayers as huge investment is taking place in these commercial buildings.
He said that inland revenue officers have also been instructed to visit each business premise and just examine that business owners have displayed their national tax numbers at their entrance gates or not. “The staff would ensure that those who don’t have NTN, must get their NTNs—those having NTNs but have not filed their income tax returns and file their mandatory tax return. Notices are being issued to get NTN numbers or NTN holders to file their tax returns with 30 days time,” he added.
He was of the view that now tax authorities would reach the doorsteps of each business establishment for ensuring filing of their mandatory tax return.
He further informed that National Database Registration Authority (NADRA) provides data or not FBR authorities through their own data would reach new taxpayers through investments being made in real estate sector or other expenditures being incurred by the rich without paying due tax.
FBR Chairman Salman Siddique present in the meeting informed that consultation is underway with NADRA for reaching an agreement on data usage by the FBR and it is expected that within one week agreement would be finalised.
He explained to the committee that under the agreement FBR would pay NADRA data usage charges and use this data for broadening of tax base as many institutions are using this data and paying charges to NADRA.
He further informed that out of potential 700,000 rich who have been identified for registration as taxpayers, examination of the data of 42,000 have been examined, data of other 100,000 would be examined within the next week and further examination of data of 100,000 rich to be completed by week ending after next week. FBR, after examining the potential of income and expenditures of the rich, would forward cases of 60,000 rich to file formations each month to register them in the tax net and ask them to file income tax returns with payment of due tax.
Courtesy- dailytimes.com.pk