176 (Notice to obtain information
SHOW CAUSE NOTICE u/s 176 of the Income Tax Ordinance, 2001
Please refer to the above.
Dear Taxpayer,
It has transpired that you failed to file your Income Tax Return for the Tax Year 2019, by the due
date, and consequently paid no income tax. This is despite the fact that you purchased
properties/earned income, and/or suffered withholding taxes under various provisions of the Income Tax
Ordinance, 2001 during the relevant period, which is reflective of your active economic status.
2. You are apprized that FBR already has the following information about your incomes/assets is given in
a table at the end.
3. You may log-into www.fbr.gov.pk to see if the information pertaining to your activities is correctly
displayed. Kindly be advised that it is only partial information that FBR has gathered so far, and our data
bank is continually being upgraded with more and more information coming into it from various sources.
4. Accordingly, you are requested to file your Income Tax Return for the T/Y 2019 by declaring therein
true particulars of your income and paying proper tax thereon by January 25, 2021, or filing a valid
explanation to the effect that you are not liable to file the Tax Return, failing which the
penalty/prosecution proceedings under the relevant provisions of the Income Tax Ordinance, 2001, will
be initiated.
Withholding Provision Amount/Value (Rs.) Tax deducted/Collected
231AA 1,395,xxx 4,187
Assignment Date :
Due Date :
09-Mar-21
From :
Reminder Issued
NAME Compliance Date :
Assignment : 09-Mar-21
NAME (Commissioner Assistant / Deputy)
To :
My dear Taxpayer,
Reference Subject.
Vide this office earlier notice issued and as mentioned in the subject, you were apprized that as per
information available with this office you have incorrectly filed a Nil income tax return for Tax Year 2019. Hence you were
provided an opportunity to revise you Income tax return and deposit due tax on the same by
2. Perusal of our electronic information reveals that so far you have failed to revise your return of
Income/respond to the subject mentioned notice. You are hereby provided another opportunity to make compliance of the
said notice by……, failing which it will be construed that you have nothing to offer in your defense hence further appropriate
action under the law shall be taken forthwith in accordance with the facts already shared with you.
What You Should Do Upon Receiving a 176 Notice:
1. Review the Notice Carefully
- Understand the Purpose: The notice will specify why FBR is requesting the information, such as clarifications on income sources, financial transactions, or discrepancies in tax filings. It may also be related to a potential audit.
- Check the Details: The notice will mention the specific information or evidence FBR requires and the deadline for submission. It’s crucial to ensure you understand the exact nature of the request.
- Ensure Accuracy: Verify that the details in the notice correspond to your records and tax filings.
2. Gather the Requested Information or Evidence
- Documentation: Collect all the documents and evidence that FBR has requested. This may include:
- Bank statements, receipts, and invoices.
- Tax returns, financial statements, and supporting documentation.
- Any correspondence with other parties, such as clients or suppliers, that might be relevant to your tax filings.
- Transaction Details: If the notice relates to specific transactions, be prepared to provide detailed records of those transactions, including contracts, payment receipts, or sale/purchase documents.
3. Consult a Tax Professional or Accountant
- Get Expert Advice: If you are unsure about what to submit or how to respond to the notice, it’s advisable to consult a tax lawyer, chartered accountant, or tax consultant. They can help interpret the notice and guide you on how to prepare a proper response.
- Clarification: If any part of the notice is unclear or you need clarification on specific requests, a professional can help communicate with FBR on your behalf.
4. Prepare Your Response
- Organize the Documents: Ensure all documents are well-organized and in order. It’s important to present clear, accurate, and relevant evidence in response to the notice.
- Submit Documents on Time: Respond to the notice within the specified timeline to avoid penalties. If you are unable to meet the deadline, you may request an extension from FBR (though this is not always granted).
- Maintain Transparency: Be honest and transparent about the information you provide. If you discover any errors or discrepancies in your records, it’s better to address them upfront.
5. Submit the Information to FBR
- Via Online Portal: If the notice allows for digital submission, use the FBR’s e-filing system to submit the requested information. Ensure that the files are in the proper format (e.g., PDF) and are uploaded correctly.
- Manual Submission: If FBR requires a physical submission, make sure to provide the documents to the relevant office, either in person or through mail, as specified in the notice.
- Acknowledgment: If possible, obtain acknowledgment of receipt of your submission, whether in the form of a stamped receipt or an email confirmation.
6. Be Prepared for Further Clarification or Audit
- Follow-up: FBR may review the information you’ve submitted and may request additional clarification or documents. Be prepared to respond promptly if FBR contacts you again.
- Audit Possibility: Depending on the outcome of the investigation or review, FBR may initiate a detailed audit of your financial affairs, which could involve a deeper review of your records.
7. Correct Any Mistakes
- Address Errors: If the notice reveals discrepancies or errors in your tax filings or documentation, it’s crucial to correct them. You may need to file revised tax returns or submit amended documents to FBR.
- Voluntary Disclosure: If you identify any discrepancies on your own and have not yet submitted the required information, it might be prudent to voluntarily disclose the error to FBR, as this can sometimes reduce the severity of penalties.
8. Potential Outcomes
- No Action: If FBR is satisfied with the information you provide, they may close the case without any further action.
- Additional Assessments or Penalties: If FBR finds issues with your filings or the provided information, you may be required to pay additional taxes, fines, or penalties.
- Legal Proceedings: In case of serious discrepancies, such as tax evasion or fraud, FBR may initiate legal proceedings, including investigations, audits, or criminal charges.
Consequences of Non-Compliance:
Failure to respond to a 176 Notice can lead to serious consequences, including:
- Penalties: Fines for non-compliance or for not submitting the requested information on time.
- Increased Scrutiny: FBR may launch a more detailed audit or investigation into your tax records.
- Legal Action: Non-compliance or fraudulent activity may lead to criminal charges and more severe penalties.
Conclusion:
Receiving a 176 Notice from FBR means that FBR is seeking additional information or evidence regarding your tax affairs. It is essential to respond promptly and provide the requested documents accurately and transparently. Consult a tax professional to ensure your compliance and avoid potential penalties or legal issues. Acting quickly and following the instructions carefully will help resolve the matter smoothly.
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