The Federal Board of Revenue (FBR) has just cleared a confusion after yesterday’s budget. The media had reported that the newly announced finance bill would allow non-tax filers to purchase vehicles and immovable property.
But the FBR gave an official statement that contradicted these statements by the media. The board said that individuals who have never filed their annual income or wealth statement will not be able to buy either. The official statement read –
The actual position is that the whole system of recognizing a non-filer as a legal entity has been done away with in the new finance bill,
The board further explained that the Income Tax Ordinance requires every individual that is earning a taxable income to file their income tax returns. For this, a mechanism has been introduced too for any person who engages in big transactions but fails to show the source or file their return.
Any person who fails to file tax returns will actually have to pay 100% more tax at the withholding stage which is applicable at many points. The person will also be automatically assessed for any taxation and any income that is not properly shown will be treated as concealed income which is subject to penalties and prosecution.