Federal Board of Revenue Pakistan (FBR) has been advised by the Federal Tax Ombudsman (FTO) in its annual report that a penalty shall be imposed on late filing of income tax returns instead of making an extension in the last date.
The late filing shall be allowed with a certain penalty per month or any part of it, as it would be a more revenue-pro measure.
It has been further added in the recommendations of FTO that for the purpose of encouraging the increase in increase in the filing of Returns by employees of government and autonomous bodies, FBR shall approach the concerned Authorities/Establishment Division to issue instructions to heads of government Departments, autonomous bodies and large scale public sector organizations for obtaining a certificate of filing of Returns by their employees falling in the tax net, at the end of the last date of filing of Returns, and link their promotions/increments to the filing of Returns.
FTO also suggested devising a mechanism in consultation with the Securities and Exchange Commission of Pakistan (SECP), so that the regular filing of income tax returns by the SECP registered non-filers business entities could be ensured.
Proper assistance to the Return filers shall be provided through the establishment of facilitation centers at convenient places, as per the recommendations of FTO.