Karachi, November 17, 2024 – The Federal Board of Revenue (FBR) has reiterated that failing to file an income tax return as mandated by the Income Tax Ordinance, 2001, constitutes a punishable offense. The agency emphasized the legal repercussions associated with non-compliance, underscoring its commitment to enforcing tax regulations.
Section 191 of the Income Tax Ordinance explicitly outlines the penalties for individuals and entities failing to meet statutory tax obligations. According to the FBR, violations under this section can result in fines, imprisonment, or both, depending on the nature and severity of the non-compliance.
The law categorically states that failure to comply with various provisions, including notices issued under Sections 114(3), 114(4), 117(3), or 116(1), constitutes a criminal offense. Non-compliance with obligations such as paying advance tax under Section 147, collecting or deducting tax under Part V of Chapter XII, and submitting accurate particulars of specified persons under Section 165(1) are also considered violations.
Furthermore, failure to fulfill additional responsibilities such as:
• Declaring business bank accounts in registration forms or returns,
• Integrating business operations with the FBR’s computerized system, and
• Issuing verifiable tax invoices through the FBR system,
all fall under punishable offenses under Section 191.
For individuals found guilty, penalties may include fines or imprisonment for up to one year, or both. In cases where the convicted party continues to neglect filing obligations after the court specifies a deadline, the offense escalates. This could result in a fine of up to Rs. 50,000, imprisonment for up to two years, or both.
The FBR stressed that these provisions are in place to strengthen the country’s tax compliance framework, ensuring that taxpayers meet their obligations promptly and accurately. By criminalizing non-compliance, the FBR aims to deter tax evasion and reinforce the integrity of Pakistan’s tax system.
Taxpayers are urged to fulfill their legal responsibilities by filing returns on time and adhering to all related requirements. Compliance not only mitigates the risk of penalties but also contributes to the nation’s fiscal health and economic stability. The FBR continues to encourage taxpayers to seek guidance and utilize available resources to meet their obligations under the law.
