Thursday , November 21 2019
Breaking News
Home / Chambers & Associations / FEBR urges taxpayers to file returns to avoid penalties
FEBR urges taxpayers to file returns to avoid penalties

FEBR urges taxpayers to file returns to avoid penalties

LAHORE: Friends of Economic & Business Reforms (FEBR) has urged taxpayers to file tax returns as per schedule.

A notification issued in this regard read “it is mandatory for every person registered in Punjab Revenue Authority (PRA) to file monthly sales tax return. In case of NO tax liability, nill return should be submitted. Otherwise as per law, if a registered person fails to file a return, his minimum tax liability will be determined as:

  1. The minimum tax liability of the registered person shall not be less than the highest amount of tax paid by the registered person in any of the previous twelve months.
  2. In case tax paid in the previous twelve months is nil, the minimum tax liability shall be calculated on the basis of monthly average of the sales declared by the registered person return of income filed under the Income Tax Ordinance, 2001 for the last tax year.
  3. In case minimum tax liability cannot be determined in the manner given above, it should be determined taking into account three or more of the following factors.

a        location of business

b        type of business (composite or stand-alone);

c        nature and market value of services provided;

d       nature of person employed

e       capital employed in the business

f        amount of utility bills i-e- phones, electricity, gas and water;

g       estimation on the basis of sales ascertained through monitoring of business premises and including electronic monitoring;

h             business turnover reflected in business bank account.