The Federal Board of Revenue (FBR) has refuted media reports that the recently introduced finance bill allows non-tax filers to purchase cars or immovable property.
FBR has clarified that individuals who have not filed their annual income or wealth statement cannot purchase any immovable property or car. “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,” says FBR.
The board has explained that the Income Tax Ordinance requires every person earning taxable income to file their income tax returns. In fact, a whole mechanism has been introduced in the 10th schedule for the person who engages in significant monetary transactions but fails to file their returns.
Such a person will have to pay 100 percent more tax at the withholding stage. He/she will be automatically assessed for taxation and their imputable income will be treated as concealed income, which is subjected to prosecution and penalties.