In Pakistan, the Federal Board of Revenue (FBR) classifies taxpayers as either “Active Taxpayers List (ATL)” or “Non-Active Taxpayers List (Non-ATL)”.
Active Taxpayers List (ATL) is a list of taxpayers who are considered to be in compliance with tax regulations and have a good track record of filing tax returns and paying taxes.
Non-Active Taxpayers List (Non-ATL) is a list of taxpayers who have not been compliant with tax regulations and have not filed tax returns or paid taxes in a timely manner.
Some of the benefits and drawbacks for ATL and Non-ATL are listed below:
Benefits of being an ATL Taxpayer:
- Lower tax rates: ATL taxpayers may be eligible for lower tax rates, which can result in lower tax liabilities.
- Tax exemptions: ATL taxpayers may be eligible for tax exemptions on certain types of income, such as capital gains or rental income.
- Streamlined tax procedures: ATL taxpayers may benefit from streamlined tax procedures, which can make it easier to file tax returns and pay taxes.
- Access to tax incentives: ATL taxpayers may be eligible for tax incentives, such as tax credits or tax rebates, which can help to lower their tax liability.
- Improved credibility: Being an ATL taxpayer can improve your credibility with banks, suppliers, and other business partners.
Benefits of being a Non-ATL Taxpayer:
- None: Non-ATL taxpayers do not typically receive any benefits.
Drawbacks of being a Non-ATL Taxpayer:
- Increased risk of penalties: Non-ATL taxpayers are at a higher risk of facing penalties and fines for failing to comply with tax regulations.
- Increased tax liability: Non-ATL taxpayers may have a higher tax liability, as they may not be eligible for tax exemptions or tax incentives.
- Decreased credibility: Being a Non-ATL taxpayer may lower your credibility with banks, suppliers, and other business partners.
It is important to note that the rules and regulations regarding ATL and Non-ATL classification in Pakistan may change over time, so it is advisable to check the latest guidance from the FBR.