Yes — a Commissioner Inland Revenue of the Federal Board of Revenue (FBR) is legally empowered to issue a warrant of arrest against a tax defaulter under Rule 183 of the Income Tax Rules, 2002, as amended up to November 24, 2023.
However, this power is not absolute and can only be exercised after fulfilling specific legal conditions and procedural safeguards.
Let’s walk through what the law actually says.
Legal Authority: Rule 183 Explained
Rule 183 lays down a step-by-step process that must be followed before arrest and detention of a tax defaulter in civil prison.
Step 1: Mandatory Show Cause Notice
Before issuing an arrest warrant, the Commissioner must issue and serve a show cause notice on the defaulter.
The notice requires the defaulter to:
• Appear before the Commissioner on a specified date
• Explain why he should not be sent to civil prison
🚫 No arrest order can be passed without this notice, except in special circumstances (explained below).
When Can Arrest Be Ordered After Notice?
The Commissioner must record reasons in writing and be satisfied that at least one of the following conditions exists:
🔴 Condition 1: Disposal or Concealment of Property
The defaulter has dishonestly transferred, concealed, or removed property after receiving the notice, with the intent or effect of obstructing recovery.
🔴 Condition 2: Ability to Pay but Refusal
The defaulter has or had the financial means to pay the tax arrears (or a substantial part of them) but:
• Refuses to pay, or
• Neglects to pay
Emergency Power: Arrest Without Prior Hearing
Rule 183 also grants emergency powers to the Commissioner.
🚨 Immediate Arrest Allowed If:
The Commissioner is satisfied (through affidavit or other evidence) that the defaulter is likely to abscond or leave the jurisdiction to delay tax recovery.
👉 In such cases, a warrant of arrest can be issued immediately, even before appearance.
What If the Defaulter Ignores the Notice?
If the defaulter:
• Is properly served with notice, and
• Fails to appear before the Commissioner
➡️ The Commissioner may directly issue a warrant of arrest.
Rights of the Arrested Tax Defaulter
Rule 183 also provides safeguards:
| Protection | Legal Requirement |
| Time limit | Must be produced before Commissioner within 24 hours |
| Payment option | Immediate release if dues are paid to arresting officer |
| Detention type | Civil prison, not criminal custody |
| Written reasons | Mandatory for arrest decision |
📌 Travel time is excluded from the 24-hour limit.
Key Takeaways for Taxpayers
• ✔️ FBR can arrest tax defaulters, but only through due legal process
• ✔️ Show cause notice is the rule, not the exception
• ✔️ Arrest is mainly used when recovery is being deliberately obstructed
• ❌ Non-payment alone does not automatically mean arrest
Quick FAQs
Can FBR arrest without court approval?
Yes. Rule 183 authorizes the Commissioner directly, subject to legal conditions.
Is this a criminal arrest?
No. It is a civil arrest for recovery of government dues.
Can payment stop the arrest?
Yes. Payment of the amount mentioned in the warrant results in immediate release.
Final Word
Rule 183 strikes a balance between revenue protection and taxpayer rights. While FBR has strong enforcement powers, arrest remains a last-resort mechanism aimed at persistent and willful defaulters who obstruct tax recovery.
👉 Staying compliant, responding to notices, and engaging with tax authorities early can help avoid such extreme measures.
Disclaimer: This article is for general informational purposes only and does not constitute legal or professional advice. The information is based on Income Tax Rules, 2002 (amended up to November 24, 2023). Readers should consult a qualified tax advisor or legal professional for guidance on specific cases. The publisher is not responsible for any loss or liability arising from the use of this information.