Islamabad: The Federal Board of Revenue (FBR) has amended the tax laws to electronically serve notices to taxpayers, news sources reported on April 26. The tax notifications will be sent via the IRS system.
By revising the Income Tax Rules, 2002, the FBR announced a new policy in its circular S.R.O.549(I)/2022. Under the new amendment, the FBR would be allowed to deliver electronic notices to taxpayers and avoid court proceedings. The circular states that if a person has provided an electronic address, the document needed to be served on the person is deemed appropriately served if it is transmitted to that address. This will also enable the tax collection mechanism to mobilise more resources as and when they are necessary by law to collect taxes.
According to tax experts, the FBR will no longer be sued in tax disputes and will be able to prevent unnecessary delays as a result of the tax law changes. However, it remains to be seen how the FBR will deal with partners of an association of persons (AOPs) or company directors in order to legally cover the notices sent through the IRS system.
It is vital to note that the FBR and the National Database and Registration Authority (NADRA) are collaborating to create a tax monitoring system based on a person’s expenditure and income. The method will be implemented in order to enhance the country’s tax net and prevent tax evasion.
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