The Lahore Tax Bar Association (LTBA) has raised the alarm over severe technical and legal flaws in the Federal Board of Revenue’s (FBR) updated return filing system, IRIS 2.0. Instead of providing smooth facilitation, the new platform is generating faulty computations, inconsistent income treatments, and widespread taxpayer frustration.
In a strongly worded letter to the FBR chairman, LTBA President Muhammad Asif Rana described the issues as “systemic failures” that could derail compliance, distort revenue collection, and damage public trust in the tax administration.
Technical Breakdowns and Wrong Calculations
The association highlighted several alarming problems, including:
- Wrong allocation of tax withheld under Section 235 for Associations of Persons (AOPs).
- Inconsistent treatment between imports (editable under Section 148) and exports (non-editable under Section 154).
- System errors during final submission, often without explanation.
- Miscalculations of liabilities, where IRIS wrongly adjusts advance tax or exaggerates demands.
Equally concerning is the unlawful taxation of exempt share income under Section 92, forcing taxpayers to pay liabilities that do not exist in law.
Taxpayer Advisory – Stay Vigilant
Tax professionals warn that taxpayers must exercise extreme caution this year:
- Do not rely solely on IRIS figures. Double-check your tax liability manually or with a consultant.
- Don’t calculate blindly on your own. Errors in manual estimations can worsen disputes.
- Verify exemptions and credits. Ensure IRIS hasn’t added or disallowed items against the law.
- Maintain full documentation. In case of inflated demands, you’ll need strong records to contest them.
- Consult experts. Professional review is now more important than ever to avoid overpayment.
Lost Filing Days Adding to Pressure
The LTBA also criticized FBR for issuing return forms late, on August 18, 2025—cutting 49 days from the statutory 92-day filing period under Section 118. With limited time left and a malfunctioning portal, taxpayers are being pushed into a compliance crisis.
Legal Community’s Demands
The association has urged FBR to:
- Fix technical glitches immediately.
- Issue clear FAQs and official circulars to guide taxpayers.
- Extend deadlines if portal failures continue.
- Set up a specialized help desk for real-time taxpayer support.
Bigger Economic Risk
Experts warn that this ongoing digital chaos threatens both taxpayer confidence and government revenue flows. For a country already struggling with economic challenges, letting IRIS 2.0 failures persist could deal a serious blow to reform and digitization efforts.
👉 Bottom Line for Taxpayers: File carefully this year. Don’t calculate manually, don’t blindly trust IRIS, and always verify your tax liability before submission.
