- Inland Revenue officers have been granted powers to arrest individuals involved in sales tax fraud during tax year 2024.
- The powers are granted under Section 37A of the Sales Tax Act.
- Officers not below the rank of an Assistant Commissioner of Inland Revenue or any officer of equal rank authorized by the FBR can make arrests based on substantial material evidence.
- The arrest procedures will adhere to the relevant provisions of the Code of Criminal Procedure.
- The Commissioner has the authority to compound the offense in cases of tax fraud, allowing for settlement if the accused party pays the outstanding tax amount, default surcharge, and penalty.
- Directors or officers of a company can be arrested if they are believed to be personally responsible for the company’s actions contributing to tax fraud.
- The government aims to strengthen tax enforcement mechanisms and foster a culture of tax compliance within the business community.
- Stakeholders have expressed varied opinions on the development, with some praising the proactive approach and others raising concerns about potential misuse of powers.
- The FBR assures that the implementation will be closely monitored to prevent misuse and maintain a balance between enforcement and safeguarding individual rights.
- The impact of these powers on the nation’s fiscal landscape will be closely watched as tax year 2024 approaches.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
