ISLAMABAD: Federal Board of Revenue (FBR) will initiate criminal proceedings in those cases where tax evasion above Rs10 million is detected.
According to minutes of the meeting chaired by the prime minister last month on proposed restructuring of FBR, measures had been decided for expeditious disposal of tax litigation cases.
It is decided that filing of criminal proceedings would be made mandatory for cases where quantum of tax evasion exceeds Rs10 million.
The meeting decided the review of tax enforcement laws would be undertaken by the ministry of law in consultation with the FBR for proposing penalties and punishment for tax evasion and non-compliance.
The meeting considered expeditious disposal of tax litigation cases for release of stuck up tax revenue of around Rs1.2 trillion, expeditious disposal of tax litigations cases needs to be ensured through amendment in tax laws and capacity enhancement of FBR’s Legal Wing.
It is decided that ministry of law and justice in consultation with the FBR to formulate necessary proposals for ensuring expeditious disposal of tax litigation cases.
It is decided that high net-worth individuals who are non-filers would be prosecuted through necessary amendments to Income Tax Ordinance, 2001.
Each Regional Tax Office (RTO)/Large Taxpayers Unit (LTU) should be authorized with proper prosecution and legal wing responsible for initiating criminal proceedings against defaulters and prompt disposal of litigation.
It is decided to review appeal mechanism for elimination of excessive tiers and lying down specific time limits for disposal of tax litigation at each stage by Member Legal.
Special tax benches would be established at high courts and supreme court by the ministry of law. Besides, provision of requisite resources for reorganization and capacity enhancement of FBR’s legal wing.
It is also decided to establish Directorate General of Public Grievances at the FBR Headquarters as effective alternate dispute resolution mechanism (ADRM).