Taxpayers could face fines or imprisonment of up to one year for specified compliance failures, while continued failure to file returns after conviction may attract tougher penalties.
The Federal Board of Revenue (FBR) has outlined prosecution provisions for tax non-compliance for Tax Year 2027 under Section 191 of the Income Tax Ordinance, 2001.
Under the provision, any person who, without reasonable excuse, fails to fulfil specified statutory obligations may face a fine, imprisonment for up to one year, or both upon conviction.
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The offences include failure to comply with certain notices relating to income tax returns, wealth statements and business information, as well as failure to pay advance tax under Section 147.
The provisions also cover failure to collect or deduct tax and deposit it with the Commissioner, provide complete and accurate particulars of persons required under Section 165, or comply with notices issued under Sections 140 and 176.
Other violations include failing to provide reasonable facilities and assistance during authorised access under Section 175, declare business bank accounts in registration documents or tax returns, integrate businesses with the FBR’s computerised system, and generate tax invoices verifiable through the Board’s system.
Section 191 further provides for additional prosecution where a person convicted for failure to comply with specified return-related requirements does not submit the relevant income tax return or wealth statement within the period set by the court.
In such cases, the person may face a further fine of up to Rs50,000, imprisonment for up to two years, or both upon conviction.
The provisions emphasise the legal consequences of failing to meet specified tax obligations, including return filing, advance tax payments, withholding tax responsibilities and prescribed digital integration requirements.
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