The Income Tax Ordinance 2001 empowers the Federal Board of Revenue (FBR) to enforce the filing of income tax returns. This authority is particularly relevant to individuals who are not on the active taxpayers’ list but are still obligated to file returns.
Key Provisions and Implications of Section 114B:
Under Section 114B of the Ordinance, the FBR can issue income tax general orders to individuals who are delinquent in their return filing. These orders can have significant consequences, including:
- Disabling of mobile phones or mobile phone SIMs: This measure is intended to restrict communication and potentially limit business activities.
- Discontinuance of electricity connection: This can severely disrupt daily life and business operations.
- Discontinuance of gas connection: Similar to the discontinuance of electricity, this can impact both personal and business activities.
- Restriction on foreign travel: In certain cases, the FBR can restrict foreign travel for individuals who have not filed their returns.
Conditions for Issuing General Orders by FBR:
Before issuing a general order, the FBR must ensure that the following conditions are met:
- Notice issuance: A notice under Section 114(4) must have been issued to the individual.
- Compliance deadline: The deadline for complying with the notice must have passed.
- Non-filing: The individual must have failed to file the required return.
Restoration of Services blocked by FBR:
The FBR can order the restoration of mobile phone services, electricity, and gas connections if:
- The individual has filed the required return.
- The individual was not obligated to file a return under the provisions of the Ordinance.
Also Read: Consequences of Not Filing Tax Returns in Pakistan: What You Need to Know
Conclusion
The Income Tax Ordinance 2001 provides the FBR with robust powers to enforce compliance with income tax return filing requirements. Individuals who fail to meet their obligations may face significant consequences, including restrictions on communication, utilities, and foreign travel. It is essential to understand these provisions and comply with the law to avoid penalties and disruptions.
