CAF 2 TAX PRACTICES MASTER SHEETS BY SIR TARIQ TUNIO
CAF-2 TX & CAF-7 CL MASTER
SHEET
BY SIR TARIQ TUNIO
03322130867 ASSESSMENT 11
NOTICE TO To file return within 30 days TAXPAYER RETURN REQUIREMENTS OF COMPLETE RETURN
RETURN NOT FILLED or longer/shorter time
NON FILER RESPONSE NOT FILE
Return of income
RETURN 1) shall be in prescribed form and accompanied by prescribed annexures,
FILLED FILED statements or documents
INCOMPLETE 2) shall fully state all relevant particulars or information as specified in the form
of return, including declaration of records kept
3) shall be signed by person when person is an individual, or signed by person’s
NOTICE informing taxpayer of deficiencies (other
than incorrect tax or short paid tax amount) & RETURN INVALID representative wherever § 172 (entitled ‘Representatives’) is applicable
COMPLEE COMPLIANCE NON/PARTIAL (as if not filed) 4) shall be accompanied with evidence of payment of due tax as per return of
directing him to provide info, particulars,
statement or doc’s by date specified on notice income, and
(Time Limits: not issued after expiry of 180 days 5) shall be accompanied with a wealth statement as required under § 116
from end of FY in which return was furnished) 6) shall be accompanied with foreign income and assets statement under § 116A
FULL
ASSESSMENT §120
1 BEST JUDGEMENT ASSESSMENT §121
Where complete return is filed, taxable income & Where a Person Fails to
tax liability is assessed in the following manner:
TIME LIMITS
► BJAO shall only be issued within 6 years after end of TY to
CIR is taken to have Furnish Return Furnish Return Furnish Produce Accounts, Docs & Records which it relates.
Return is taken to be ► Where notice for filing of return for one or more of last 10
made assessment of in Response to (aircraft/ ship owner Wealth before CIR, Special Audit Panel, CA/ICMA
deemed ‘assessment years, assessment order shall only be issued within 2 years
order’ issued to Notice or charterer) Statement firm appointed by FBR for tax audit
►taxable income from the end of TY in which such notice is issued
taxpayer by CIR on the
and
day return was
►tax due
furnished.
CIR may ► Based on available information or material and to the best of his judgment CIR issues Best Judgment Assessment order (BJAO) Stating:
► make best judgment assessment of taxable income, income & tax due taxable income; amount of tax due, amount of tax paid (if any);
► [Assessment on the basis of return/revised return shall be of no legal effect] and time, place and manner of appealing the assessment order
2 AMENDED ASSESSMENT § 122
Assessment order is amended and amended DEFINITE INFORMATION includes
Original assessment may be amended by CIR by making alterations or additions as he considers necessary assessment order further amended (on the basis of information
Contents of Amended Assessment Order: As soon as possible after making an amended assessment, CIR shall audit or definite information) if CIR is satisfied that: § on sales or purchases of any
issue amended assessment order to the taxpayer stating a) amended taxable income of the taxpayer b) amended (1) any income chargeable to tax has escaped goods made by the taxpayer
amount of tax due c) amount of tax paid, and b) time, place, and manner of appealing the amended assessment assessment § receipts of the taxpayer from
(2) total income has been under-assessed, or services rendered or
(3) total income has been assessed at too low § any other receipts that may be
TIME LIMITS FOR AMENDMENT a rate, or chargeable to tax under this
Before expiry of 5 years from end of FY in which CIR has issued/ treated as issued the assessment order (4) total income has been subject of excessive Ordinance, and
relief or § on the acquisition, possession or
3 FURTHER AMENDED ASSESSMENT § 122
(5) total income has been subject of excessive
Refund; or
disposal of any money, asset,
valuable article or investment
(6) Any amount under a head of income has made or expenditure incurred by
Original assessment once amended may be further amended as many times as necessary been misclassified the taxpayer.
TIME LIMITS FOR FURTHER AMENDMENT
Amended assessment may be further amended within the later of
► 5 years from end of FY in which CIR has issued or is treated as having issued the original assessment order to the taxpayer; or
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►1 year from end of FY in which CIR has issued or is treated as having issued the amended assessment order to the taxpayer.
PAGE 2 OF 2
No assessment shall be amended or further amended unless taxpayer has been provided with an opportunity of being heard (SCN)
SHOW CAUSE
ISSUANCE OF SCN Within 180 Days + Max 90 Days (for reasons to be recorded in writing) AMENDED/FURTHER AMENDED ASSESSMENT ORDER
NOTICE
U/S 122(9)
Days not Counted: Any period during which proceedings are adjourned on account of ►stay order ► ADR Proceedings ►agreed assessment proceedings or ► time
taken through adjournment by taxpayer not exceeding 60 days
PROCESSING OF COMPLETE RETURN THROUGH AUTOMATED SYSTEM Complete return is furnished → processed through automated system →to arrive at correct total income, taxable income and tax payable
PROCESSING OF → by making adjustments for (1) arithmetical error in return (2) incorrect claim (if such incorrect claim is apparent from information in return) (3) disallowance of loss, deductible allowance or tax credit, and
RETURN (4) disallowance of c/f of loss where person has not filed return within due date (i.e. person is late filer) [NOTE: Date of implementation not yet notified by the Board]
THROUGH
AUTOMATED ARITHMETICAL ERROR includes any INCORRECT CLAIM apparent from any information in the return shall mean a claim, on the basis of an entry, in the return (i) of an item, which is inconsistent
wrong or incorrect calculation of tax with another entry of the same or some other item in such return; (ii) regarding any tax payment which is not verified from the collection system; or (iii) in
SYSTEM
payable including any minimum or final respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio
tax payable. or fraction.
SYSTEM GENERATED NOTICE RESPONSE RECEIVED FROM TAXPAYER NO ADJUSTMENTS IF NOT DONE WITHIN 60 MONTH
No adjustments shall be made - shall be considered before making any adjustment, and Where no adjustments are made within 6 month of filing of return, amounts specified in the return
- unless system generated notice is given to taxpayer - in case no response is received within 30 days of as declared by the taxpayer shall be deemed to have been taken as adjusted amounts on the day the
- specifying adjustments intended to be made issuance of notice, adjustments shall be made. return was filed and the taxpayer shall be intimated automatically through IRIS
PROVISIONAL ASSESSMENT IN ASSESSMENT IN CASE OF
REVISION BY CIR REVISION BY CC AGREED ASSESSMENT CERTAIN CASES DISPUTED PROPERTY
Revision in Case of Exemption or Offer of Settlement: Where taxpayer in/res/to SCN u/§ 122(9) Provisional Assessment in Two Where ownership of any property income from
Suomoto Calling for Record: CIR may
Lower Rate Certificates: Chief intends to settle his case he may file offer of settlement in Situations: Where which is chargeable to tax under ITO-2001 is in
suomoto call for record of any
Commissioner may prescribed form before Assessment Oversight Committee (AOC) (1) Concealed asset of person is dispute in Civil Court in Pakistan
proceeding in which order has been
§ either of his own motion or in/add/to filing reply to CIR (Exclusions: cases involving impounded by § assessment order or amended assessment
passed by OIR other than CIR (Appeals)
§ on application by taxpayer concealment of income or interpretation of question of law having department/agency of FG/PG order in respect of such income
Revision of Order: After making inquiry
for revision effect on other cases) (2) offshore asset of person (not § may be issued at any time within 1 year -
(if necessary), CIR makes revision to
§ call for record of any Composition: AOC comprises of income tax authorities having declared earlier) is discovered after the end of FY in which decision of Court
order (as deems fit)
proceedings jurisdiction over taxpayer, namely: (a) CCIR (b) CIR and (c) Add. CIR by CIR or any department/ is made
Revision Order Not Prejudicial to
§ relating to issuance of Calling of Record by AOC: AOC after examining offer may call for agency of FG/PG
Taxpayer: Order of revision by CIR shall
exemption or lower rate record of case & after affording oobh to taxpayer, may decide to CIR may issue provisional assessment
not be prejudicial to the person to whom EVIDENCE OF ASSESSMENT § 126
certificate with regard to accept or modify offer through consensus and communicate its order or provisional amended
the order relates.
collection/ deduction of tax decision to the taxpayer. assessment order for last completed
No Revision if Case Pending in Appeal:
§ in which an order has been Payment of Tax and Amendment of Assessment as per Decision of Certified Copy of Assessment Order: Production of
CIR shall not revise order if (a) appeal TY taking into account the
passed by any authority Assessment Oversight Committee: Where taxpayer is satisfied with AO/ certified copy of AO shall be conclusive evidence
against order lies to CIR (A) or to ATIR concealed/offshore asset at any time
subordinate to him decision of AOC: (a) taxpayer shall deposit amount of tax payable of due making of assessment & amount and all
and time within which such appeal may before issuing BJAO u/§ 121 or
Order of Revision: Where including penalty and D/S as per decision of AOC (b) CIR shall amend particulars of assessment are correct except in
be made has not expired; or (b) order is amended AO u/§ 122
§ after making such inquiry assessment in/acc/with decision of AOC after tax payable including appeal proceedings relating to the assessment
pending in appeal before CIR (A) or has Finalization of Provisional Order: CIR
as is necessary penalty and D/S as per decision of AOC has been paid (c) taxpayer Want of Form/ Mistake & Defect or Omission: AO or
been made subject of appeal to ATIR. shall finalise provisional AO or
§ CC considers that order shall waive right to prefer appeal against such amended other document purporting to be made, issued, or
Appeal Effect Order in 120 Days: If any provisional amended AO as soon as
requires revision assessment, and (d) no further proceedings shall be undertaken executed under ITO-2001 may not be (a) quashed or
order is remanded back to any lower practicable
§ CC may make such order as under ITO-2001 in/res/of issues decided by AOC unless tax has not deemed to be void or voidable for want of form; or
authority by CIR for modification, Concealed Asset (Definition):
he may deem fit in the been deposited by taxpayer (b) affected by reason of any mistake, defect, or
alteration, implementation of directions Concealed asset means any property
circumstances of case Referral of Case Back to CIR if Issue Not Resolved: Where AOC has omission therein IF it is in substance & effect in
or de novo proceedings the order giving or asset which, in the opinion of CIR,
§ after providing reasonable not been able to arrive at consensus or where taxpayer is not conformity with Ordinance & person assessed/
effect to the directions of CIR shall be was acquired from any income subject
opportunity of being heard satisfied with decision of AOC, case shall be referred back to CIR for intended to be assessed or affected by document, is
issued within 120 days to tax under this Ordinance
to the taxpayer decision on the basis of reply of taxpayer in/res/to notice. designated in it according to common understanding
