The Federal Board of Revenue (FBR) has amended the Income Tax Rules to allow individuals active with the tax authorities of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) to be included in Pakistan’s Active Taxpayer List (ATL).
According to a notification issued on Thursday, the amendments have been made under powers conferred by the Income Tax Ordinance, 2001. Under the revised Rule 81B, individuals appearing on the Active Taxpayer List of the AJK Central Board of Revenue or the Gilgit-Baltistan Council Board of Revenue will be included in the FBR’s ATL, provided their temporary or permanent address is in AJK or GB and their addresses are also recorded in Pakistan.
The procedure requires the Commissioner Inland Revenue, having jurisdiction based on the temporary address listed on the individual’s CNIC, to verify through the IRIS system that the person has no employment or business activity in Pakistan. This verification will be conducted following an inquiry and an undertaking submitted by the individual.
At the same time, the relevant commissioner of the AJK or GB revenue authority will be required to confirm, through IRIS, the existence of employment or sole business activity in those territories.
The notification further states that if the Commissioner Inland Revenue later determines that a person included under these provisions is liable to file an income tax return under the Income Tax Ordinance and fails to comply with a notice, their name will be removed from the Active Taxpayer List.
