Compensations, Additional Tax, Notional Interest and Refunds

Compensations, Additional Tax, Notional Interest and Refunds
The Federal Board of Revenue must emerge as standing with those revenue authorities that provides greater scope of tax payment deferrals where viable businesses are having difficulty in meeting tax payments due because of economic conditions. The recent trend of having conducting audits under section 177 and reluctance of Commissioners of Income Tax in not exercising deferral powers provided under section 137 in order to achieve their targets are nothing but adding fuel to fire.
It is suggested that compensation on refunds to small and medium sized businesses be issued at regular intervals as currently refunds of Rs50,000 or less are issued more rapidly. In furtherance, it is also suggested that the rate of compensation, benchmark of notional interest on interest free loan and additional tax be aligned with KIBOR. These steps will provide a sigh of relief during liquidity crises and help in generating economic activities.

Article courtesy of Muhammad Ashraf