Income Tax Ordinance 2001: three-year jail for person assisting tax evasion

KARACHI: A person is liable to three-year jail term for assisting tax evasion or motivating another person for commit tax offence under prevailing tax laws.

FBR officials said that there are harsh punishments for various offences for tax evasion, concealment and deliberating non-compliance under Income Tax Ordinance, 2001.

Section 199: Prosecution for abetment

Where a person knowingly and willfully aids, abets, assists, incites or induces another person to commit an offence under this Ordinance, the first-mentioned person shall commit an offence punishable on conviction with a fine or imprisonment for a term not exceeding three years, or both.

Section 192A: Prosecution for concealment of income

Sub-Section (1): Where, in the course of any proceedings under this Ordinance, any person has either in the said proceedings or in any earlier proceedings concealed income or furnished inaccurate particulars of such income and revenue impact of such concealment or furnishing of inaccurate particulars of such income is five hundred thousand rupees or more shall commit an offence punishable on conviction with imprisonment up to two years or with fine or both.

Sub-Section (2): For the purposes of sub-section (1), concealment of income or the furnishing of inaccurate particulars of income shall include–

(a) the suppression of any income or amount chargeable to tax;

(b) the claiming of any deduction for any expenditure not actually incurred; or

(c) any act referred to in sub-section (1) of section 111.

Section 193: Prosecution for failure to maintain records

A person who fails to maintain records as required under this Ordinance shall commit an offence punishable on conviction with –

(a) where the failure was deliberate, a fine not exceeding fifty thousand rupees or imprisonment for a term not exceeding two years, or both; or

(b) in any other case, a fine not exceeding fifty thousand rupees.

Section 194: Prosecution for improper use of National Tax Number Certificate

A person who knowingly or recklessly uses a false National Tax Number Certificate including the National Tax Number Certificate of another person on a return or other document prescribed or used for the purposes of this Ordinance shall commit an offence punishable with a fine not exceeding fifty thousand rupees or imprisonment for a term not exceeding two years, or both.

Section 195: Prosecution for making false or misleading statements

Sub-Section (1): A person who –

(a) makes a statement to an income tax authority that is false or misleading in a material particular; or

(b) omits from a statement made to an income tax authority any matter or thing without which the statement is misleading in a material particular, shall commit an offence punishable on conviction –

(i) where the statement or omission was made knowingly or recklessly, with a fine or imprisonment for a term not exceeding two years, or both; or

(ii) in any other case, with a fine.

Sub-Section (2): A person shall not commit an offence under sub-section (1) if the person did not know and could not reasonably be expected to have known that the statement to which the prosecution relates was false or misleading.

Sub-Section (3): “Entry against S.No 10 in column (2) of the Table in sub-section (1) of section 182” shall apply in determining whether a person has made a statement to an income tax authority.

Section 196: Prosecution for obstructing an income tax authority

A person who obstructs an income tax authority in discharge of functions under this Ordinance shall commit an offence punishable on conviction with a fine or imprisonment for a term not exceeding one year, or both.

Section 197: Prosecution for disposal of property to prevent attachment

Where the owner of any property, or a person acting on the owner’s behalf or claiming under the owner, sells, mortgages, charges, leases or otherwise deals with the property after the receipt of a notice from the Commissioner with a view to preventing the Commissioner from attaching it, shall commit an offence punishable on conviction with a fine up to hundred thousand rupees or imprisonment for a term not exceeding three years, or both.

Section 198: Prosecution for unauthorised disclosure of information by a public servant

A person who discloses any particulars in contravention of sub-section 1B of section 107 or section 216 shall commit an offence punishable on conviction with a fine of not less than five hundred thousand rupees or imprisonment for a term not exceeding one year, or both.

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1 Comment on "Income Tax Ordinance 2001: three-year jail for person assisting tax evasion"

  1. In number of cases, at the time of assessment, the assessing officers creates frivolous demands against the tax payer. Thus putting the assesses in unnecessary litigation which involve lot of time and money
    It is suggested that if such frivolous demands are remanded back from any of the two higher forums than the assessing officers should be accounted for and discrepancy action should be initiated against him/her
    This will atleast make them think twice before making assessment and create frivolous demands

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