FBR to Remove Taxpayers from ATL for Failure to Update Taxpayer Profiles

While taking a step that may contract the tax base, the Federal Board of Revenue (FBR) has decided to remove the names of thousands of taxpayers from the Active Taxpayers List (ATL) for their failure to either submit or update their taxpayer profiles by 31 March 2021 under Section 114 A of the Income Tax Ordinance, 2001.

Officials from the FBR told Propakistani that it may remove the names of the taxpayers who have not updated their profiles, and will ask them to submit the prescribed penalty, and that that it had extended the deadline for the submission of the Taxpayer’s Profile to 31 March.


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The withdrawal of the names of taxpayers from the ATL may affect a large number of taxpayers who will not be able to either file or upgrade their taxpayers’ profiles by 31 March.

The FBR has linked the re-inclusion of taxpayers in the ATL on the condition of their payments of the prescribed penalty in the law. It has already clarified that salaried individuals are not required to update their tax profiles but every person applying for registration under Section 181 of the Income Tax Ordinance, 2001, including salaried individuals, is required to update their tax profile.

It explained that a taxpayer’s profile contains information about their income regarding bank accounts, utility connections, business premises including all manufacturing, storage, or retail outlets operated or leased by the taxpayer, types of businesses, and other such information that it may prescribe.

For now, if a person fails to furnish or update their taxpayer’s profile by either the due date or the extended deadline under Section 214 A, they shall not be included in the ATL for the latest tax year ending prior to the due date or the extended deadline.


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The condition for the submission of the taxpayer’s profile covers certain categories of taxpayers like persons applying for registration, persons deriving an income chargeable to tax under the head, an income from a business, or an income subject to final taxation, non-profit organizations, and any trust or welfare institution.

Those who had registered before 30 September 2020 and have a business income or income subject to final taxation, trusts, welfare institutions, and non-profit organizations are required to file taxpayers’ profiles.

The taxpayer’s profile will be filed electronically in the prescribed format provided on the IRIS Web Portal.

However, the FBR officials added that upon the filing or updating of the profile, such persons will be allowed to be placed on the active taxpayers’ list upon the payment of a surcharge of Rs. 20,000 in the case of a company, Rs. 10,000 in the case of an association of persons, and Rs. 1,000 in the case of an individual.