FBR starts penal action against non-filing of asset declarations

FBR starts penal action against non-filing of asset declarations

The Federal Board of Revenue (FBR) has taken a firm stance against tax officials who have failed to submit their annual asset declarations, signaling the commencement of penal action against non-compliant officers.

In a statement released on Thursday, the FBR Chairman expressed serious concern over the significant number of officers who have not filed their asset declarations despite clear instructions.

The FBR’s move to enforce compliance is rooted in Circular No. 01/2015, which outlines guidelines for the performance allowance. Specifically, para 7 under the heading “De-notification of Performance Allowance” addresses non-filing of annual declarations of assets and liabilities by FBR employees. The relevant section, para 7 (vii), stipulates consequences for officers failing to submit their annual declarations on time.

“vii) Non-filing of annual declaration of assets and liabilities: The employees, who fail to file their annual declaration of assets and liabilities on the due date each year, shall be de-notified for performance allowance for a period of three months of filing of declaration of assets and liabilities for the year, whichever is later.”

In light of this, the FBR has issued a directive, stating that officers failing to submit their declaration of assets and liabilities for the fiscal year ending June 30, 2022, will face discontinuation or de-notification after August 31, 2022. Furthermore, non-compliance will be treated as ‘Misconduct’ under the applicable rules.

The revenue body has explicitly communicated to all FBR officers, both at the headquarters and field formations (Customs, Inland Revenue/ex-cadre), to adhere to the instructions and submit their asset declarations by the specified deadline of August 31, 2022. Failure to meet this deadline will result in the initiation of administrative action against non-compliant officers.

The FBR’s decision to take penal action underscores the importance of transparency and accountability within the tax administration. Annual asset declarations serve as a crucial tool to monitor and ensure the financial integrity of tax officials, promoting ethical conduct and preventing potential conflicts of interest.

By enforcing the submission of asset declarations, the FBR aims to uphold the highest standards of integrity among its personnel. This initiative aligns with broader efforts to enhance governance, accountability, and compliance within the tax administration, contributing to the overall effectiveness of revenue collection mechanisms.

Tax officials are urged to promptly fulfill their obligation to submit accurate and timely asset declarations, recognizing the significance of maintaining public trust in the taxation system. The FBR’s commitment to taking decisive action against non-compliance reaffirms its dedication to fostering a culture of accountability and responsibility within the organization.