The Federal Board of Revenue (FBR) has announced plans to implement stringent measures against individuals who deliberately submit incorrect or incomplete income tax returns during the current year. These measures include freezing bank accounts and imposing significant fines on offenders.
In a bid to strengthen enforcement and tackle tax non-compliance, the FBR has also proposed additional penalties such as banning the purchase of immovable properties and vehicles, disconnecting utility connections, and imposing heavy fines on those who file inaccurate returns.
The policy changes, proposed by FBR Member Inland Revenue (Operations), aim to address tax non-compliance across various sectors, including Tier-1 retailers and manufacturers, and cover both Sales Tax and Income Tax.
Key punitive measures proposed include:
- A fine of Rs. 1,000,000 for each incorrect or incomplete return filed.
- Disconnection of utilities for those filing incorrect or incomplete returns.
- Freezing of bank accounts for non-compliant filers.
- A ban on purchasing property or vehicles for those submitting inaccurate returns.
- Increased transparency through third-party monitoring.
- AI and ML-assisted immediate and comprehensive audits for non-compliant filers.
The FBR believes these steps will be crucial in enhancing the tax enforcement regime and achieving fiscal targets. The board is open to discussions and suggestions to further refine these policy measures for maximum effectiveness.
