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RCITs told to issue notices to 8,000 corporate non-filers

ISLAMABAD (May 24 2004): The Central Board of Revenue (CBR) has directed Regional Commissioners of Income Tax (RCITs) including Director General Large Taxpayer Unit (LTU), Karachi to issue notices to over 8,000 corporate non-filers of income tax returns for the tax year 2003.

A total of 19689 companies have obtained National Tax Number (NTN), while 11000 companies have filed returns in 2003. This shows that around 8689 companies have not filed return in tax year 2003.

Sources told Business Recorder here on Sunday that the CBR has issued instructions to RCITs to ensure that decency and politeness be maintained at all levels while issuing notices to them under Section 114(4) of the Income Tax Ordinance 2001.

Under Section 114(4), the Commissioner is empowered to direct any person, who is required to file a return of income but failed to do so, to furnish a return within 30 days from the date of serving notice or as commissioner may allow.

The CBR is also obtaining the addresses of the directors of these non-filers companies from the Pakistan Revenue Automation Limited (PRAL) so that the department could contact the companies' directors in case of no response of notices at the companies' addresses.

The CBR has informed RCITs that the number of corporate entities in the country is very limited, Board, therefore, expects a similar exercise against corporate non-filers which was undertaken against the non-corporate entities for not filing their income tax returns.

Sources said that the number of 8689 corporate non-filers might not be as large as it appears because a number of companies may be either dormant or they might not have gone into operation.

Moreover, these could be many companies who might have gone in operation but could not have commenced their commercial production.

The CBR would carry out a countrywide exercise to ascertain the causes of non-filing of returns by these companies keeping in view these ground realities u/s 114(4) of the Ordinance 2001.

The CBR has asked RCITs to submit the progress by 10th of every month, sources added.

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