Acceptance Of What (Income Tax) Certificate For Processing Of Refund Claim


(In re: Acceptance of WHT (Income Tax) Certificate for Processing of Refund Claim)

The Chairman, Federal Board of Revenue Government of Pakistan, Islamabad


Dear Sir,

Our certain (company by status) are professional insurance surveyors applied for refundable amount out of WHT (income tax) deducted from billed amount. The company filed refund application together with certificates of WHT issued by a few Insurance. Companies, and certain challans (individual/multiple) received from different insurance companies.

  1. The Officers Inland Revenue (OIR) expressed their inability to consider/accept the refund able amount based on WHT certificates, and required independent challans and/or photocopy of challans (in case of multiple deposits). It is pertinent to mention here that upon our request the OIR issued letters directly to Insurance Companies for verification/ confirmation. In reply, they confirmed through letter/certificate the amounts deducted on account of WHT. In spite of such verification/ confirmation the OIR again expressing their inability for the same reasons, and repelled the

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verification letters received by them. The difficulties explained by us were:---

The companies/taxpayers repeatedly approached the said two insurance companies for issuance of photocopies of paid challans (individual/multiple deposits) in support of WHT certificate but they were unable to issue the same. Their contentions are: (1) WHT deposited through a single challan on behalf of numerous persons; (2) the insurance companies paid surveyors' billed amount between Rs.700 and 900 on which the amount of WHT came between 40 and 55 which were recoyered/deposited, accordingly it is not possible for them to trace out the party-wise numerous paid challans; (3) despite the above factors, the records were kept in a scattered manner on account of re organization of department on several occasions; (4) there is no appropriate system in their office by which the date of deposits, gross amount of challan and share amount of tax could be trace out; (5) the photocopies of annual statement for WHT certificate for Tax year 2008 and backward could not be traced out; (6) it was- beyond imagination to trace out the data of countless persons relating to innumerable transactions in each month; and (7) that were the reasons for which the WHT were/are issued to each surveyor on the basis of consolidated account book:.

  1. The taxpayers are professional/licence holder insurance surveyors (registered by SECP (Ins. Wing). Various certificates issued by insurance companies support all receipts and WHT. All payments were received through cheques (without cash transaction) and receipts are verifiable from bank statement. Furthermore, the taxpayer is ready to give an undertaking to return back the refundable amount, in case any discrepancy unearthed in future. Despite all the facts and grievances shown by the taxpayers, the OIR are repelling the verifications certificates/letters, repeating the same plea and showing their inability for issuance of refundable amount.

In the light of above facts, volume of amount, countless transaction, genuine difficulties faced by taxpayers as well as insurance companies, it is requested that the matter may be considered for issuance of refundable amount and a directive may be issued to all concerned Officers of Inland Revenue so that the refundable amounts be granted and issued to taxpayers.

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