FBR proposes rules for Active Taxpayer list

The Federal Board of Revenue (FBR) has published a draft of proposed rules for the Active Taxpayer List (ATL), which outlines the criteria for inclusion in the list. According to the rules, individuals who file their tax returns after the due date will only be included in the ATL if they pay a surcharge as specified in the Income Tax Ordinance.

The Statutory Regulatory Order (SRO) 1448(I)/2024, issued by the FBR, invites public feedback on the proposed amendments to the Income Tax Rules, 2002. The proposed changes aim to clarify the rules for inclusion in the ATL, which is a list of taxpayers who have filed their tax returns on time and are considered ‘active’ taxpayers.

The proposed changes are as follows.

Sub-rule (1) has been revised to replace the phrase “clauses (23A) and (35C) of section 2 and section 181A” with “publishing active taxpayers’ list, hereinafter referred to as ATL, under Section 181A of the Ordinance”.

Sub-rule (2) has been revised to specify that a person’s name will be included in the ATL if they file their tax return by the due date specified in Section 118 or by an extended due date as specified in Section 119 or Section 214A.

A new sub-rule (2A) has been added, which states that if a person files their tax return after the due date or extended due date, their name will be included in the ATL if they pay a surcharge as specified in proviso to clause (a) of sub-section (1) of Section 182A of the Ordinance.

 A new sub-rule (5) has been added, which states that a company or association of persons whose return is not due to be filed because of incorporation or formation after June 30th relevant to the latest tax year will be included in the ATL.

A new sub-rule (9) has been added, which states that a person’s name will be included in the ATL if they have filed their return with the Azad Jammu and Kashmir Central Board of Revenue or Gilgit-Baltistan Council Board of Revenue and their temporary and permanent addresses are in Azad Jammu and Kashmir or Gilgit.

The tax authority has invited public feedback on these proposed amendments and has requested that objections or suggestions be submitted within seven days of publication.