FBR to Freeze Bank Accounts, Impose Fines for False Income Tax Returns
The Federal Board of Revenue (FBR) is set to take stringent measures against individuals who file income tax returns with false information, including fines of up to Rs1,000,000 and freezing of bank accounts. The tax authority is also considering further penalties, such as restricting property and vehicle purchases, utility disconnections, and heavy fines.
These proposals, aimed at boosting tax collection, are currently awaiting approval from relevant authorities. However, some tax advisers have expressed concerns that such measures could be misused, potentially penalizing taxpayers who inadvertently make mistakes during the filing process.
Supporters of the policy argue that many individuals are exploiting the system by filing “Nil” returns, declaring no assets to avoid paying taxes. This, they say, constitutes perjury and can lead to legal action under section 192 of the Income Tax Ordinance.
The FBR’s Member Inland Revenue (Operations) has put forward these proposals to enhance enforcement and tackle tax non-compliance. If approved, these measures will likely have significant implications for taxpayers and the tax collection process in Pakistan.
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