The Federal Board of Revenue (FBR) here on Tuesday categorically refuted the news item appearing in a section of press under the title "Top units show poor compliance," saying it was based on incorrect information.
"The statement is not based on the correct appreciation of the requirements of e-filing, conveys a deficient impression regarding the voluntary compliance by the corporate taxpayers," said a FBR press release issued here on today.
The process to collect audited accounts in accordance with the laid down procedure has already been initiated in LTU, Lahore with a positive response from the taxpayers while making voluntary compliance in this behalf, it added.
E-filing of income tax returns by the corporate sector was made mandatory through the Finance Act 2007 in order to promote voluntary compliance.
Accordingly, in line with the vision of the Chairman FBR, a well focused strategy was adopted to facilitate voluntary compliance by creating IT compatible environment and educating taxpayers, it said.
The best response was made by the corporate taxpayers of LTU, Lahore where optimal compliance was recorded as 98% returns were e-filed.
This was made possible largely due to the taxpayers' confidence in the FBR's working and the environment created by the LTU, Lahore.
The audited accounts, not being a part of the e-filing process, are required to be filed by taxpayers separately. The taxpayers' confidence is further reflected through the income tax collection of the first quarter of the current financial year.
Direct tax collection (net) of LTU, Lahore for the first quarter ending 30th September 2007 has increased to Rs 4699 million as against Rs 2220 million of the corresponding period of the last year, the press release added.
It indicates an impressive growth of 112%. Yet another indictor of the taxpayers' contribution is the payment of tax out of demand which stand at Rs 2340 million which is 482% higher than the collection from the same source in the last year.
"It is all indeed a reflection of taxpayers' better perception of FBR's policies aiming at encouraging tax collection through voluntary compliance," the press release concluded.