Karachi, September 20, 2023 – In a stern warning to citizens, the Federal Board of Revenue (FBR) announced that individuals may face at least one year in prison for various tax offenses.
Sources within the FBR revealed on Wednesday that these penalties could escalate in cases of repeated non-compliance with tax regulations.
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The legal framework governing these consequences is outlined in Section 191 of the Income Tax Ordinance, 2001, which enumerates specific offenses for which individuals can face imprisonment of up to one year.
According to the section, titled “Prosecution for Non-Compliance with Certain Statutory Obligations,” individuals may be subject to penalties for various offenses, including:
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Failing to comply with notices issued under specific sections of the Income Tax Ordinance, such as notices related to tax returns or advance tax payments.
Failing to fulfill obligations related to tax collection and deduction, along with timely payment to the tax authorities.
Providing incomplete or inaccurate information, especially regarding persons mentioned in relevant sections.
Not cooperating with notices issued by tax authorities.
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Failing to integrate one’s business with the Board’s computerized system.
Not generating tax invoices that are verifiable by the Board’s system.
Individuals found guilty of these offenses may face punishment, which may include fines, imprisonment for a term not exceeding one year, or both. Furthermore, if a convicted person fails to furnish the required tax return within the specified period set by the court, they may face additional penalties, including a fine not exceeding fifty thousand rupees or imprisonment for a term not exceeding two years, or both.
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This announcement underscores the FBR’s commitment to enforcing tax compliance and deterring tax evasion. It serves as a reminder to taxpayers to fulfill their tax obligations promptly and accurately to avoid legal consequences.
Taxpayers are advised to seek professional guidance if they have any uncertainties about their tax obligations to ensure compliance with the law and avoid potential legal repercussions. The FBR’s stringent stance emphasizes the importance of maintaining transparency and accountability in the country’s tax system.
