FBR includes AJK and GB taxpayers in Active Taxpayer List

GILGIT: The Federal Board of Revenue (FBR) has announced an important change in its tax regulations, including that individuals who file their tax returns with the Azad Jammu and Kashmir (AJK) Central Board of Revenue or the Gilgit-Baltistan (GB) Council Board of Revenue in the Active Taxpayer List (ATL).

According to the Statutory Regulatory Order (SRO) issued by the Federal Board of Revenue, this change will apply to those individuals whose temporary or permanent addresses are located in AJK or GB.

“A person’s name, where such person has filed returns in the Azad Jammu and Kashmir Central Board of Revenue or Gilgit-Baltistan Council Board of Revenue, shall be included in the active taxpayers’ list if his temporary and permanent addresses are in the Azad Jammu and Kashmir or Gilgit-Baltistan,” the SRO stated.

This change is part of a series of amendments proposed to the Income Tax Rules, 2002, in line with Section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001). The draft amendments have been published for public consultation, and objections or suggestions can be submitted within seven days of the draft’s publication in the official Gazette. The FBR has clarified the procedure for taxpayers to remain or be included in the ATL.

Read more: FBR proposes rules for Active Taxpayer list

As per the proposed amendments, the existing language in sub-rule (1), which previously referred to “clauses (23A) and (35C) of section 2 and section 181A,” will now be substituted with the phrase “publishing active taxpayers’ list, hereinafter referred to as ATL, under section 181A of the Ordinance.”

“A person’s name shall be included in the ATL if he files a return of income tax for the latest tax year, by the due date specified in section 118 or by the due date as extended under section 119 by the Commissioner or by the due date as extended by the Board under section 214A.”

The draft explains that “latest tax year” refers to the most recently completed tax year, including the previous year if the deadline for the current year’s return has not yet expired.

In cases where returns are filed after the due date, taxpayers can still be included in the ATL by paying a surcharge, as specified in the Income Tax Ordinance.

According to the proposed amendments, the ATL will now be updated on a daily basis rather than weekly, which previously occurred every Sunday. Companies or associations of persons that were incorporated after June 30, relevant to the most recent tax year, will also be included in the ATL, even if their returns are not yet due.