FBR Empowered to Recover Outstanding Liabilities under Other Laws

FBR Empowered to Recover Outstanding Liabilities under Other Laws

KARACHI: In a notable development, the Federal Board of Revenue (FBR) has been granted the authority to recover outstanding liabilities under various statutes or laws. Section 146D of the Income Tax Ordinance, 2001, now empowers the Commissioner (Inland Revenue) to recover such liabilities and deposit the proceeds into the designated account specified in the respective law.

The amendment has been introduced through Finance Bill, 2023. The amended provision states that if any outstanding liability related to a defaulter is classified as Income Tax arrears under another statute or law, or if it is mandated to be recovered or collected by the Commissioner (Inland Revenue), or if the matter is referred to the Commissioner (Inland Revenue) for recovery, then it becomes the responsibility of the Commissioner (Inland Revenue) to undertake the recovery process.

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This amendment expands the FBR’s scope of authority beyond the recovery of income tax liabilities, enabling them to address outstanding dues under other laws as well. By streamlining the process and consolidating the recovery efforts, the FBR aims to enhance efficiency and effectiveness in collecting outstanding liabilities from defaulters.

The FBR’s role as a central authority for the recovery process will provide a unified approach, reducing administrative complexities and ensuring a systematic mechanism for the collection of outstanding dues. The recovered amounts will be deposited in the specified account, as mentioned in the relevant law associated with the liability.

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This amendment emphasizes the FBR’s commitment to strengthen revenue collection efforts and bring defaulters to account. By broadening their jurisdiction to encompass liabilities under various statutes or laws, the FBR aims to improve compliance and deter individuals from evading their financial obligations.

It is important to note that the amendment does not introduce any new liabilities but rather empowers the FBR to recover outstanding amounts that fall under the purview of other laws. This provision reinforces the government’s commitment to fiscal discipline and ensures that outstanding dues are efficiently collected and allocated in accordance with the relevant legislation.

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The FBR’s enhanced authority to recover outstanding liabilities under other laws aligns with the government’s broader objective of promoting financial transparency, discouraging tax evasion, and ensuring a level playing field for all taxpayers. The streamlined recovery process will contribute to a stronger revenue base, enabling the government to allocate resources effectively for public welfare and development initiatives.

The FBR will continue to work diligently to identify and pursue defaulters, recover outstanding liabilities, and foster a culture of compliance within the taxpayer community. Through these measures, the government aims to create a fair and equitable tax system that supports economic growth and strengthens the country’s financial stability.

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In conclusion, the recent amendment granting the FBR the authority to recover outstanding liabilities under other laws marks a significant step toward strengthening revenue collection efforts. By consolidating the recovery process and depositing the proceeds into designated accounts, the FBR aims to improve efficiency, enhance compliance, and ensure the fair and effective allocation of recovered funds.

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