Section 176 of the Income Tax Ordinance 2001 authorises tax commissioners to summon individuals, demand documents and computerised records, and facilitate on-site examinations of taxpayers’ business premises.
ISLAMABAD: The Federal Board of Revenue (FBR) has outlined its powers to obtain information and evidence from taxpayers and other persons under Section 176 of the Income Tax Ordinance 2001 for Tax Year 2027, covering July 1, 2026, to June 30, 2027.
According to the ordinance updated up to June 30, 2026, a commissioner may issue a written notice requiring any person, whether or not liable to pay tax, to provide information relevant to tax liabilities or obligations under agreements with foreign governments or tax jurisdictions.
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The commissioner may also summon individuals to appear at a specified time and place to be examined on oath regarding their own tax affairs or those of another person. They may be required to produce accounts, documents and computer-stored information under their control.
Under Section 176, chartered accountancy firms and cost and management accountancy firms appointed to conduct audits under Section 177 may, with the relevant commissioner’s prior approval, enter a taxpayer’s business premises, obtain information and examine records. Special audit panels appointed under Section 177 are also granted similar powers, subject to the prescribed approval requirements.
The commissioner may impound accounts and documents produced during the process and retain them for as long as necessary for examination or prosecution purposes.
The law allows information to be submitted electronically through computer-readable media. If required information is not provided in the prescribed form, the commissioner may require the production of the computer storing it and retain the device as necessary to copy the relevant data.
Section 176 also grants commissioners powers similar to those exercised by courts under the Code of Civil Procedure 1908. These include enforcing attendance, examining individuals under oath, compelling the production of records, receiving affidavit evidence and issuing commissions to examine witnesses.
The provision further states that its requirements apply notwithstanding laws or rules concerning privilege or public interest in relation to producing records or providing information.
The measures establish the statutory framework through which the FBR can obtain evidence for tax administration and enforcement.
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