Karachi, January 14, 2025 — The Federal Board of Revenue (FBR) has unveiled a detailed procedure governing the actions of Inland Revenue (IR) officers in the arrest of individuals suspected of violating tax laws.
The process, established under Section 37B of the Sales Tax Act, 1990, outlines clear guidelines to ensure compliance with legal and procedural safeguards. The FBR has emphasized the importance of adherence to these protocols to uphold fairness and transparency in enforcement actions.
Key Provisions of Section 37B
Section 37B of the Sales Tax Act, 1990, serves as the foundation for the arrest procedure. Below are the main provisions:
1. Immediate Notification to Special Judge When an IR officer, authorized by the FBR, arrests a person under Section 37A of the Act, they must promptly inform the Special Judge. The Special Judge will then provide directions regarding the time, place, and date for producing the arrested individual, and the officer is obligated to comply with these directives.
2. Production Before Judicial Authority Any person arrested under the Act must be presented before the Special Judge or, if unavailable, the nearest Judicial Magistrate, within 24 hours of the arrest. This timeframe excludes the duration required for travel to the relevant judicial authority.
3. Bail Considerations Upon presentation of the individual, the Special Judge may decide on granting bail based on a review of the available records and after hearing the prosecution. Bail can be granted with or without sureties. However, the Special Judge retains the authority to cancel bail at a later stage if deemed necessary, following due process.
4. Detention and Custody The Judicial Magistrate or Special Judge may authorize the detained individual to remain in custody to facilitate their earliest production before the appropriate judicial authority. This custody period must not exceed 14 days and is aimed at ensuring thorough inquiry or investigation.
5. Inquiry by Inland Revenue Officers An IR officer conducting an inquiry has the same powers as a police officer under the Code of Criminal Procedure, 1898. However, these powers must be exercised in accordance with Section 37B. During the inquiry, the officer must document the arrest details and maintain transparency in their investigation.
Record Maintenance
The FBR mandates that all IR officers maintain a “Register of Arrests and Detentions,” where they record critical details such as:
• Name and particulars of the arrested individual
• Time and date of arrest
• Evidence or items recovered
• Names of witnesses involved
• Day-to-day progress of the inquiry
This register must be available for review by the Special Judge when requested.
Safeguards and Rights
To safeguard the rights of individuals, the FBR has incorporated several checks and balances:
• If the inquiry reveals insufficient evidence, the IR officer must release the individual and submit a report to the Special Judge for discharge.
• A Magistrate of the First Class may record any statement or confession during the inquiry, ensuring compliance with Section 164 of the Code of Criminal Procedure.
• The FBR, with ministerial approval, can authorize additional officers to exercise these powers, ensuring adequate oversight.
Importance of Compliance
The FBR has reiterated that the arrest procedure under Section 37B is a vital tool for maintaining accountability in tax administration. However, strict adherence to these provisions is essential to prevent misuse of authority and protect the rights of individuals.
Broader Implications
This procedural framework highlights the FBR’s commitment to maintaining a balance between enforcing tax compliance and respecting the rule of law. By clearly defining the responsibilities of IR officers and judicial authorities, the FBR aims to foster transparency and build public trust in its operations.
In summary, the arrest procedures outlined by the FBR under Section 37B provide a robust mechanism for Inland Revenue officers to conduct inquiries while ensuring fairness and legal compliance. These measures underscore the FBR’s role in upholding the integrity of Pakistan’s tax system and promoting accountability.