Global Law Company (GLC) in Pakistan offers comprehensive Tax Returns filling services through its team of expert tax lawyers and consultants. Specializing in handling income tax notices and rectification of tax returns, GLC recognizes the challenges and uncertainties individuals may face when dealing with tax-related issues. The company assures its clients that there is no need to panic when confronted with a tax notice, as its team is dedicated to providing assistance and guidance throughout the entire process.

NON-FILER ASSISTANCE:

For non-filers who have recently made significant transactions, such as purchasing a motor vehicle or property, GLC highlights the likelihood of the Tax Department being aware of these transactions. This awareness could potentially lead to a tax notice. In such cases, GLC’s team provides expert opinions and advice to effectively resolve the matter.

PROCESS OF ASSISTANCE:

GLC team initiates the process by thoroughly understanding the details of the client’s case. This involves a meticulous review of the income tax return and wealth statement to ensure that all necessary information is included and accurately represented. GLC’s experts guide clients through the process of rectifying any errors or discrepancies identified in their returns.

COMPREHENSIVE SUPPORT:

Recognizing the complexity and time-consuming nature of tax matters, GLC is committed to providing comprehensive support. The team takes on the responsibility of handling all communication with the Income Tax Department on behalf of the client. This ensures that the case is presented effectively and that all necessary documents and information are provided when required.

PROFESSIONALISM AND CLIENT SATISFACTION:

GLC prides itself on its professionalism, expertise, and commitment to client satisfaction. The company’s goal is to help clients efficiently and effectively resolve their tax issues, ensuring compliance with all necessary regulations and laws.

DOCUMENTS CHECKLIST FOR FILING TAX RETURN AND BECOMING A FILER IN PAKISTAN

The documents checklist for filing tax return and becoming a filer in Pakistan, provided by Global Law Company, includes the following items:

1. PERSONAL INFORMATION:

FBR IRIS login details, including user ID and password.

2. SOURCES OF INCOME:

For salary individuals/employees:

Tax deduction certificate for the financial year (July to June), record of tax payments made in various forms such as cash withdrawals, banking instruments, children’s school fees, mobile and telephone expenses, motor vehicle registration and token, purchase and sale of property, and any additional sources of income like rent, bank profits, dividends, prize bonds, foreign income, capital gains, gifts, and inheritance.

For business individuals and self-employed individuals:

Income records to verify amounts (such as business bank statements and accounts), records of all expenses (cheque registers, credit card statements, salary expenses, rent expenses, utilities expenses, traveling expenses, communication expenses, etc.), business-use asset information for depreciation, office in home information (if applicable), record of tax payments made in various forms, and any additional sources of income.

For rental income:

Records of income and expenses, rental asset information for depreciation, record of tax payments made during the financial year, and any additional sources of income.

For retirement income:

Pension/annuity income/retirement benefits, social security income (if any), record of tax payments made during the financial year, and any additional sources of income.

For savings and investments or dividends:

Interest/dividend income, income from stocks or other property, dates of acquisition, records of the cost of purchase or other basis in the property sold, expenses related to investments, record of tax payments made in various forms, and any additional sources of income.

Other income and losses:

prizes and awards, trusts, royalty income, gifts, inheritance, foreign remittances, any other income received.

3. PERSONAL EXPENSES FINANCIAL YEAR (JULY TO JUNE):

Rent, rates/taxes/charges/cess, vehicle running/maintenance, traveling, electricity, water, gas, telephone, asset insurance/security, medical expenses, educational expenses, club expenses, expenses related to functions/gatherings, donations, zakat, annuity, profit on debt, life insurance premium, other personal/household expenses, and contributions in expenses by family members.

4. WEALTH STATEMENT:

Personal assets and liabilities, including agricultural property, commercial/industrial/residential property (non-business), business capital, equipment (non-business), animals (non-business), investments (non-business), debts (non-business), motor vehicles (non-business), precious possessions, household effects, personal items, cash (non-business), any other asset (gold jewelry, prize bonds, etc.), assets in others’ names (spouse, children, parents, brother), assets held outside Pakistan, and liabilities (credit, advance, borrowing, deposit, loan, mortgage, overdraft, payable).

It is important to note that this checklist may vary depending on individual circumstances and may require additional supporting documents not listed here. It is recommended to consult with tax professionals or refer to official tax authorities for the most accurate and updated information regarding tax filing and becoming a filer in Pakistan.

1. BENEFITS OF BEING A TAX FILER IN PAKISTAN

Becoming a tax filer in Pakistan holds significant advantages, and understanding the benefits is crucial for individuals aiming to fulfill their obligations under the Income Tax Ordinance, 2001. The classification of taxpayers into filers and non-filers is based on the submission of income tax returns, and compliance with this process unlocks several advantages for taxpayers. Here are the key benefits:

Facilitation in Property Transactions:

Tax filers in Pakistan enjoy exemptions and relaxed procedures in property transactions. This includes reduced withholding tax rates on property transfers, making it more cost-effective and efficient for filers to engage in real estate transactions.

Cash Withdrawals from Banks:

Tax filers are entitled to higher cash withdrawal limits from banks without incurring additional withholding taxes. This allows filers greater flexibility in managing their financial transactions.

Bank Profits and Dividend Processing:

Tax filers benefit from reduced withholding tax rates on bank profits and dividends. This encourages individuals to participate in investment activities, promoting financial inclusion and a thriving economy.

Vehicle Purchases and Token Tax Benefits:

Tax filers enjoy reduced token tax rates on vehicle purchases. This incentive encourages compliance and serves as a reward for fulfilling tax obligations.

Enhanced Creditworthiness:

Being a tax filer contributes positively to an individual’s credit history. Financial institutions may view tax filers more favourably when assessing creditworthiness, potentially leading to better financing options.

Government Tenders and Contracts:

Tax filers are often eligible to participate in government tenders and contracts, opening up additional opportunities for business and economic growth.

Immunity from Penalties and Scrutiny:

Tax filers may experience reduced scrutiny and audits compared to non-filers. This can lead to a smoother and less intrusive tax compliance process.

Investment Opportunities:

Some investment opportunities may be exclusively available to tax filers. This includes participation in certain financial instruments and schemes that are designed to promote economic growth.

Social Responsibility:

Being a tax filer is a demonstration of social responsibility, as taxes collected contribute to national development, infrastructure, and public services.

Legal Standing:

Being a tax filer indicates compliance with the legal requirements set by the government. This enhances an individual’s legal standing and demonstrates commitment to contributing to the national revenue.

The benefits of being a tax filer in Pakistan extend beyond mere compliance. Tax filers enjoy a range of incentives and privileges that positively impact their financial transactions, business opportunities, and overall economic participation. It is essential for individuals to recognize these advantages and fulfill their tax obligations to contribute to the economic development of the country while reaping the benefits that come with tax filer status.

1. ACTIVE TAXPAYER LIST (ATL)

The Active Taxpayer List (ATL) in Pakistan is a system maintained by the Federal Board of Revenue (FBR) to identify individuals and companies who have filed their income tax returns and have a valid taxpayer status. It is important for individuals and businesses to be on the ATL as it provides certain benefits and privileges, such as reduced withholding taxes, faster processing of tax refunds, and eligibility for certain government contracts.

To be included in the ATL, taxpayers need to submit their income tax returns along with their wealth statements to the FBR. Once the FBR system updates its records, the taxpayer is automatically considered a “filer” and will be included in the ATL.

 

To check if an individual or company is on the ATL, one can visit the FBR website and search for the Active Taxpayer List section. Another way to check is by sending a text message to 9966 with the message format “ATL (space) CNIC number” (e.g., ATL 35202 XXXXXXX1). This will provide instant information on whether the individual or company is an active taxpayer.

It is important to note that being on the ATL does not exempt individuals or companies from fulfilling their tax obligations. They are still required to file their income tax returns and pay their due taxes on time. Failure to do so can lead to penalties, fines, or legal consequences.

Feel free to reach out to Global Law Company for further assistance or to schedule a consultation.