ISLAMABAD, October 5, 2025 – The Federal Board of Revenue (FBR) has officially issued a detailed framework outlining the arrest procedure for Inland Revenue (IR) officers in connection with tax fraud investigations.
The new standard operating procedure (SOP), defined under Section 37B of the Sales Tax Act, 1990, aims to ensure transparency, accountability, and due process during every arrest related to tax fraud cases.
According to the FBR, the arrest of any individual suspected of tax fraud must be immediately reported to the Special Judge, who will decide when and where the accused should be produced. If a Special Judge is not available nearby, the arrested individual must be presented before the nearest Judicial Magistrate within 24 hours, excluding travel time.
The updated guidelines also allow the Special Judge to grant or deny bail based on available evidence. In cases where additional investigation is required, the judge may permit the Inland Revenue officer to detain the accused for a maximum of 14 days.
Furthermore, every arrest must be logged in a “Register of Arrests and Detentions,” containing complete details of the suspect, evidence, and investigation progress. FBR officials emphasized that the new rules align with criminal procedure standards and strengthen the department’s capacity to curb tax evasion effectively while safeguarding legal rights.
The revised arrest mechanism represents FBR’s ongoing reforms to enhance transparency in tax enforcement and build public trust in the revenue system.