What to do if you receive a notice in Pakistan from the FBR?

What should you do if you receive a notice from the FBR in Pakistan? Don’t panic; do this!

Receiving a notice from the Federal Board of Revenue (FBR) in Pakistan can be nerve-wracking. Especially if you’ve never received a notice, take a deep breath! Receiving a tax notice doesn’t always mean you’re in trouble. It could be a simple request for clarification, a routine audit, or a discrepancy in your tax filings.

What to do and what not to do if you receive a notice from the FBR.

In Pakistan, why did I receive a notice from the FBR:

What to do if you receive a notice in Pakistan from the FBR?

What to do if you receive a notice in Pakistan from the FBR?

There are several common reasons why the FBR might send you a notice

Failure to file tax returns

Discrepancy in income/assets versus declarations

Non-filed or incomplete wealth declaration

Suspicious bank transactions

Third-party data (property, vehicles, etc.) indicating undeclared income.

Audit Selection

How the FBR Communicates with Taxpayers in Pakistan:

What to do if you receive a notice in Pakistan from the FBR?

Proactive tax management begins with being aware of how the FBR reaches out to taxpayers. The FBR in Pakistan employs a multi-pronged approach, leveraging both traditional and modern communication channels

Physical Notices:

What to do if you receive a notice in Pakistan from the FBR?

Despite the advancements in digital communication, the FBR still relies on traditional paper notices. These are typically delivered via the postal service to your officially registered address as maintained in their records. Therefore, it is crucial to ensure that the address you have registered with the FBR is always current and accurate. Any address changes should be promptly updated to avoid missing important communications.

Email Notifications:

What to do if you receive a notice in Pakistan from the FBR?

Recognizing the efficiency and speed of digital communication, the FBR frequently sends notices and updates via email. This is usually sent to the email address provided during your initial tax registration or any subsequent updates you have made. Make it a habit to regularly check this dedicated email account, perhaps even daily or at least a few times a week. Treat it as an essential part of your tax management routine.

SMS Alerts:

What to do if you receive a notice in Pakistan from the FBR?

For timely updates and critical alerts, including notifications about issued notices, the FBR utilizes SMS messaging. 

These alerts are sent to your registered mobile phone number. Just like your address and email, keeping your mobile phone number updated with the FBR is vital to ensure you don’t miss any important communications that require immediate attention.

Types of FBR Notices: Understanding Different Types of Tax Notices in Pakistan:

What to do if you receive a notice in Pakistan from the FBR?

FBR issues various types of notices depending on the specific reason for communication. Here are some common types

Section 114: For non-filers, asking you to file an income tax return.

Section 116: Request to file or update your wealth statement.

Section 122: Amendment of assessment (FBR wants to revise your return).

Section 177: Notice of audit of income tax return.

Section 214C: Random selection for audit.

Section 111:Unexplained income or assets.

The Monitoring of Taxes (Rule 44 Notices):

What to do if you receive a notice in Pakistan from the FBR?

These notices are issued to corporate entities and individual withholding agents responsible for collecting and paying taxes on behalf of others. They require the submission of compliance documents to ensure proper deduction and payment of taxes at the source. A hearing is often scheduled after the submission. If any tax is found to be owed after the hearing, a notice of tax demand is issued under Section 137 of the Income Tax Ordinance.

Audit Notices (Section 177 Notices):

What to do if you receive a notice in Pakistan from the FBR?

These are formal notices for tax audits. Taxpayers are required to submit a wide range of financial documents, including financial statements, ledgers, notes to accounts, tax deduction certificates, contracts, and more. If the FBR’s verifications are not satisfied, a tax demand is created under Section 137.

Advance Tax Notices (Section 147 Notices):

What to do if you receive a notice in Pakistan from the FBR?

These notices mandate the payment of advance taxes, which are compulsory for Associations of Persons (AOPs) and companies. For individuals, the requirement to pay advance tax often depends on their turnover.

Notices to File Returns (Section 114 Notices): 

What to do if you receive a notice in Pakistan from the FBR?

If a taxpayer fails to file their annual income tax return within the stipulated due date, the FBR issues these notices to prompt them to file their return and avoid penalties.

Notice120(3)

Incomplete Income Tax Return

This specific notice arises during a desk audit of your income tax return. It informs you that your return is considered deficient and potentially invalid due to missing information or documentation. In the provided example, the deficiency is the lack of signed financial statements, which are mandatory for the validity of the return. The notice provides an opportunity to rectify this by submitting the required documents within a specified deadline.

What to do if you receive a notice in Pakistan:

What to do if you receive a notice in Pakistan from the FBR?

Don’t panic.

This is the key. Many notices are just routine or easily resolved.

Check

Section number of the notice

Reason for notice

Deadline to respond

Log in to the IRIS portal.

All FBR notices are available on IRIS. Log in and download the full notice to understand the exact requirement.

Submit required documents.

Prepare these documents:

What to do if you receive a notice in Pakistan from the FBR?

CNIC

Previous tax returns

Wealth statement

Bank statements

Any supporting documents requested?

What to do if you receive a notice in Pakistan from the FBR?

Consult a tax professional.

If you are unsure about how to respond, consult a tax consultant or accountant. This can help you avoid penalties and legal complications.

Respond within time.

Never delay your response. Penalties or assessments may be levied if you miss the deadline.

What not to do?

What to do if you receive a notice in Pakistan from the FBR?

Do not ignore the notice.

Do not submit incomplete or incorrect information.

Do not wait until the deadline to respond.

Be relaxed. Do not panic or speculate.

Conclusion:

What to do if you receive a notice in Pakistan from the FBR?

A notice from the FBR in Pakistan is not the end of the world. The best course of action is to remain calm, informed, and respond professionally. Whether you are a freelancer, a salaried individual, or business owner, student, understanding your tax obligations and being transparent is the safest course of action.

Contact Us:

What to do if you receive a notice in Pakistan from the FBR?

Difference Between Filer and Non-Filer in Pakistan

How to Face a Tax Audit in Pakistan: A Guide for Individuals and Businesses

 Role of the Federal Board of Revenue (FBR) in Tax Collection and Compliance

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What to do if you receive a notice in Pakistan from the FBR?