INTRODUCTION OF NOTICE FROM FBR
Today, our topic is to discuss “Notice From FBR” and why taxpayers receive notices from the Federal Board of Revenue and how they need to respond to them on time.
The following are the most common notices that are frequently received by Tax Payers.
- 176(1) Notice to obtain information or evidence. (Notice to call for information/documents of submitted financials).
- 161(1) Notice to obtain pay tax deducted / Collected. (Notice to monitor improper and inaccurate deduction of withholding tax on the payments)
- 44(4) of the Income Tax Rules. (Notice to monitor non-compliance of withholding tax).
Based on the following reasons through which cases are selected by FBR for examination and audit.
- Balloting is a random selection of tax return filling.
- Parameters due to the analysis of data submitted, trends and financial ratios, etc.
- Commissioner is of the view that financials submitted by the taxpayer is inaccurate or misrepresented, therefore the commissioner independently issues audit notices to call for record/documents for examination and analysis.
- The Board of Revenue is also of the right that the comprehensive audit is conducted of tax activities of particular cases.
- By non-filling of returns by taxpayers.
- Any discrepancies found in the submitted data or high differences in Prior data by comparative analysis.
Although the notices specifically mention how the data is to be presented to FBR officials or commissioner for review, examination, analysis, and audit the most common detailed information required is as follows
- A Comprehensive file along with hard copies or soft copies via USB or CD to be prepared with supporting based on financial data already submitted in the complete period to which the notice relates.
- Copies of all bank statements for the complete year.
- Copies of invoices and vouchers that confirm and verify the parties to whom the payments are made.
- Copies of paid challan and Cash Payment Receipt Number (CPR).
- Detailed Payroll sheet confirming that tax deduction and payment were made as per section 149 (threshold) along with EOBI and SESSI Contributions.
- Copies of sale and purchases Invoices are to be provided for the complete year.
- Copies of expenses charged during the year as per Profit & Loss Account.
- Detail of Fixed Asset at Balance Sheet along with the depreciation charged as expenses.
- Copies of detailed comparative liabilities and payments made thereon for the year.
- Detail of Exemptions if applied in case of invoicing and non-deduction of tax at the time of payments.
- Copies of audited or unaudited financial accounts duly signed with a stamp by authorized persons.
The following powers vested with the board or commissioners may ensure:
- The physical presence of a taxpayer whose case is under examination and scrutiny.
- Calling for records or documents from you in transactions with other parties.
- Detail information of any financials till 6 years.
- Commission or board having rights as civil courts.
CONCLUSION OF NOTICE FROM FBR
In the Conclusion of the notice from FBR, responses to notices on IRIS Application and physical data submitted to FBR Concerned officer should be made timely. Delay in providing information or replying to notice may cause disreputation, penalty, changing tax active status to inactive, and issuance of 138 ( 1 ) recovery notice where the taxpayer will be liable to pay tax amount mentioned in the notice by the way of the attachment of sale of moveable or immovable property, any authorized person appointed from FBR to recover the amount or debit blocked in all bank accounts till the tax amount recovery. If you have still any confusion related to the notice from FBR then hire a tax consultant now.
We provide valuable tax services to our clients to manage their stress by replying to notices on time that they receive during the normal course of business from FBR or any regulatory bodies. If you want any professional tax services like Income tax services, sale tax services, NTN registration services, Financial Services, Intellectual property rights, and other consultancy services then contact us.
