Federal Board of Revenue (FBR) has strongly refuted the news appearing in some sections of the press which states that the new finance bill has allowed the non-filers to purchase immovable property or cars.
“The actual position is that the whole system of recognizing a non-filer as a legal entity has been done away with in the new finance bill.”
FBR has explained that under the Income Tax Ordinance, every person earning taxable income ought to file his income tax return. In case of failure of filing of returns by persons involved in significant monetary transactions, a complete mechanism has been provided in the newly-inserted 10th schedule. Such persons will not only have to pay 100pc more tax at withholding stage but will also be automatically assessed to tax and his/her imputable income will be treated as concealed income liable to penalties and prosecution.