Income Tax Ordinance 2001: two-year jail for failing return, statement filing

KARACHI: Federal Board of Revenue (FBR) is going to invoke certain provisions of tax laws, including prosecution for non-compliance to return and statement filing, under which about two years jails suggested for failing in return filing.

The FBR has launched a campaign for broadening the tax base and is identifying potential taxpayers as well as existing taxpayers, who are non-compliant in filing annual income tax returns.

FBR sources told PkRevenue.com that there are very harsh provisions in Income Tax Ordinance, 2001 against non-filing of income tax returns and declaration of wealth statement.

The FBR on Friday issued Active Taxpayers List (ATL) showing only 1.6 million income tax return filers whereas around 4 million National Tax Numbers (NTNs) issued and on the other hand the Computerized National Identity Card (CNIC) has been declared as NTN for individuals.

The provision of Income Tax Ordinance, 2001 related to prosecution are included:

Section 191: Prosecution for non-compliance with certain statutory obligations

Sub-Section (1): Any person who, without reasonable excuse, fails to —
(a) comply with a notice under sub-section (3) and sub-section (4) of section 114 or sub-section (1) of section 116;

(b) pay advance tax as required under section 147;

(c) comply with the obligation under Part V of this Chapter or chapter XII to collect or deduct tax and pay the tax to the Commissioner;

(d) comply with a notice served under section 140 or 176;

(e) comply with the requirements of sub-section (3) or sub-section (4) of section 141; or

(f ) provide reasonable facilities and assistance as required under sub-section (3) of section 175,

shall commit an offence punishable on conviction with a fine or imprisonment for a term not exceeding one year, or both.

Sub-Section (2): If a person convicted of an offence under clause (a) of sub-section (1) fails, without reasonable excuse, to furnish the return of income or wealth statement to which the offence relates within the period specified by the Court, the person shall commit a further offence punishable on conviction with a fine not exceeding fifty thousand rupees or imprisonment for a term not exceeding two years, or both.

Section 192: Prosecution for false statement in verification

Any person who makes a statement in any verification in any return or other document furnished under this Ordinance which is false and which the person knows or believes to be false, or does not believe to be true, the person shall commit an offence punishable on conviction with a fine upto hundred thousand rupees or imprisonment for a term not exceeding three years, or both.

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