This blog is written by Mr. M. Kaleem Majeed, Manager Taxation Advisory Services. Please read this blog and provide your valued comments.

Common Type of Notices Sent by FBR (Phase-II)

“It takes less time to do things right than to explain why you did it wrong”

NOTICE TO SUBMIT FOREIGN ASSETS DECLARATION U/S 116A (2) OF ITO, 2001

The Commissioner may by a notice in writing require any person being an individual who, in the opinion of the Commissioner on the basis of reasons to be recorded in writing, was required to furnish a foreign income and assets statement under sub-section (1) of 116A of ITO, 2001 but who has failed to do so to furnish the foreign income and assets statement on the date specified in the notice.

CONDITIONS FOR FILING:

  1. Foreign Income equal to or more than 10,000 USD or
  2. Foreign Assets equal to or more than 100,000 USD

CONSEQUENCES OF NON-COMPLIANCE

Show cause notice for imposition of penalty u/s 182(1AAA) of ITO, 2001

Such person shall pay a penalty of 2% of the foreign income or value of the foreign assets for each year of default.

Show cause for unexplained income and assets u/s 111(1) of ITO, 2001

NOTICE TO SUBMIT RETURN OF INCOME FOR LESS THAN ONE YEAR U/S 114(3) OF ITO, 2001

The Commissioner may, by notice in writing, require a person, or a person’s representative, as the case may be, to furnish a return of income by the date specified in the notice for a period of less than twelve months, where –

  1. the person has died;
  2. the person has become bankrupt or gone into liquidation;
  3. the person is about to leave Pakistan permanently;
  4. omitted
  5. the Commissioner otherwise considers it appropriate to require such a return to be furnished.

CONSEQUENCES OF NON-COMPLIANCE

Show cause notice for Imposition of penalty under section 182(1) of ITO, 2001

Such person shall pay a penalty equal to 0.1% of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than twenty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of twenty thousand rupees.

Show cause notice under section 121(1)(ab)/(d) of ITO, 2001

 Kaleem Majeed