The Federal Board of Revenue (FBR) is responsible for collecting taxes and ensuring compliance with tax laws in Pakistan. One of its key functions is to issue notices to individuals and businesses who are required to file tax returns or provide other information. Notices from the FBR can be confusing and intimidating for many taxpayers, particularly those who are unfamiliar with the tax system. In this article, we will discuss some of the common types of notices served by the FBR and what they mean for taxpayers in Pakistan.
Types of Notices Served by Federal Board of Revenue:
- Notice to Submit Income Tax Return for a Period of Less than One Year:
The FBR may require a person or their representative to furnish a return of income for a period of less than twelve months through a notice in writing. This notice can be issued in several situations, such as when the person has died, become bankrupt or gone into liquidation, or is about to leave Pakistan permanently. The Commissioner may also consider it appropriate to require such a return to be furnished.
- Notice to Submit Income Tax Return for a Period of 5 to 6 Years:
If a person is required to file a return of income under section 114 but has failed to do so, the FBR may issue a notice requiring them to furnish a return of income for that year. The Commissioner can specify the period within which the return must be submitted, which is usually thirty days from the date of service of the notice. The Commissioner may allow a longer or shorter period depending on the circumstances.
- Notice to Submit Statement of Income Subject to Final Tax for any of the Previous 5 Years:
The FBR may require a person who is required to file a prescribed statement under section 115(4) but has failed to do so, to furnish a prescribed statement for that year. The notice specifies the period within which the statement must be submitted, which is usually thirty days from the date of service of the notice. The Commissioner may allow a longer or shorter period depending on the circumstances.
- Notice to Submit Wealth Statement:
The FBR may require an individual to furnish a wealth statement on the date specified in the notice. The statement must be in the prescribed form and verified in the prescribed manner, and must provide details of the person’s total assets and liabilities, as well as those of their spouse, minor children, and other dependents. The statement must also include details of any assets transferred by the person to any other person during the specified period, the consideration for the transfer, and the total expenditures incurred by the person and their family during that period.
In conclusion, the FBR issues various types of notices to taxpayers in Pakistan, and it is important to understand what these notices mean and how to respond to them. Failure to respond to notices in a timely and accurate manner can result in penalties and legal action, so it is important to seek professional advice if you are unsure about your obligations. We hope this article has provided some clarity on the types of notices served by the FBR.