Daily Times

KARACHI: Despite malfunctioning of the system of IRIS, various field officers are still issuing notices to taxpayers (withholding agents) in respect with late/non-filing of withholding statements, the Karachi Tax Bar Association (KTBA) said.

The KTBA has raised an issue relating to difficulties faced by taxpayers with the Federal Board of Revenue (FBR) chairman, seeking resolution of the same.

KTBA states in a letter to the FBR chairman, “At various occasions, the bar has highlighted the issues relating to difficulties being faced by the taxpayers in e-filing of monthly statements through its numerous letters, which are on record.”

The matter has also been taken up with the FBR IR Policy member at the meeting held with him firstly at KTBA office and subsequently at the FBR as well in which it was unanimously agreed that the penalties should not be imposed due to the malfunctioning of the system of IRIS, which is causing undue harassment and mistrust between the taxpayers and tax collectors,
it added.

Unfortunately, however, it has been observed that various field officers are still issuing notices in respect with late/non-filing of withholding statements, indiscriminately, by completely ignoring the fact that the root cause of late filings actually lies in none other than the varied and multiples issues in the IRIS itself and not due to any fault of the genuine taxpayers, KTBA said.

“We, therefore, earnestly request your honor to kindly issue the necessary direction to the field officers restraining them from issuing penalty notices which is not only oppressive in nature but actually causing serious harassment amongst the taxpayers,” the letter added.

It would not be out of context to place a suggestion towards the resolution of this chaotic situation that the board may choose to resort to either of the following options; the board may extend the due date of filing the eight monthlies for the months of July 2015 to Feb 2016 for up to Mar 31, 2016.