The federal government has offered a chance to individual taxpayers to abolish tax audit cases against them in return for 25% additional tax.
Under this unannounced amnesty scheme, hundreds of thousands of salaried persons who the government had selected for tax audit, got their cases settled without paying any additional taxes, according to the tax authorities.
The government has also extended the date for submission of revised tax returns till the end of this year.
The notification informs that the PTI-led government has amended the Income Tax Ordinance 2001 to increase tax returns from the salaried class.
With this, a new clause 214E has been added under which the scheme will now apply to the taxpayers selected for audit under clause 214D of the Income Tax Ordinance 2001. This section was previously removed from the ordinance. Moreover, those taxpayers who have not been issued notices under section 122 of the law will also come under the new tax ordinance.
As per the notification, the taxpayers under the scheme will now submit an additional 25 per cent of the tax on top of the last tax paid.
Non-filers will have to pay a sum equal to two per cent of their total turnover. Those who have not declared their turnover will need to pay an additional Rs 20,000 as a fine.
The clause 214D (previously removed from ordinance) was introduced in 2015. The clause was added to select late filers for an audit, and according to a senior official of the Federal Board Revenue (FBR), 1.22 million individual taxpayers were selected for review for the next three years under this clause.
The official revealed that hundreds of thousands of audit cases were pending with FBR and thus the PML-N government, in its last budget for FY2018-19, removed section 214D from the income tax ordinance. However, the impending audit cases were still a problem for the revenue department.