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Tag: tax recovery

  • Sales Tax Act 1990: Vast recovery powers of IR officers

    Sales Tax Act 1990: Vast recovery powers of IR officers

    KARACHI: The officers of Inland Revenue have vast powers under sales tax laws to recover outstanding amount from taxpayers.

    Section 48 of updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR) explained the powers of IR officers for recovery of outstanding amount from taxpayers.

    Section 48: Recovery of arrears of tax.

    Sub-Section (1): Subject to sub-section (1A), where any amount of tax is due from any person, the officer of Inland Revenue may:-

    (a) deduct the amount from any money owing to person from whom such amount is recoverable and which may be at the disposal or in the control of such officer or any officer of Income Tax, Customs or Central Excise Department;

    (b) require by a notice in writing any person who holds or may subsequently hold any money for or on account of the person from whom tax may be recoverable to pay to such officer the amount specified in the notice;

    (c) stop removal of any goods from the business premises of such person till such time the amount of tax is paid or recovered in full;

    (ca) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts;

    (d) seal the business premises till such time the amount of tax is paid or- recovered in full;

    (e) attach and sell or sell without attachment any movable or immovable property of the registered person from whom tax is due; and

    (f) recover such amount by attachment and sale of any moveable or- immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument:

    Provided that the Commissioner Inland Revenue or any officer of Inland Revenue shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that ten per cent of the amount of tax due has been paid by the taxpayer.

    Sub-Section (1A): If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by any person and which cannot be recovered in the manner prescribed above, the Board or any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the Board.

    Sub-Section (2): For the purpose of recovery of tax, penalty or any other demand raised under this Act, the officer of Inland Revenue shall have the same powers which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree.

  • Sales Tax Act 1990: recovery of short payment without notice

    Sales Tax Act 1990: recovery of short payment without notice

    KARACHI: The sales tax law authorized tax authorities to recover short paid amount without issuing notice.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 11A of the Act explained the authority of tax officials in recovery of short paid amount.

    Section 11A: Short paid amounts recoverable without notice

    Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder:

    Provided that no penalty under Section 33 of this Act shall be imposed unless a show cause notice is given to such person.

    Section 11B: Assessment giving effect to an order

    Sub-Section (1): Except where sub-section (2) applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person, the Commissioner or an officer of Inland Revenue empowered in this behalf shall issue the order within one year from the end of the financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.

    Sub-Section (2): Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is served with the order:

    Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred against the order passed by Appellate Tribunal or a High Court.

  • Sales Tax Act 1990: Recovery of amount erroneously refunded

    Sales Tax Act 1990: Recovery of amount erroneously refunded

    KARACHI: The officers of Inland Revenue have been authorized for recovery of refunded amount erroneously issued to taxpayer along with penalties and default surcharge.

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  • Income Tax Ordinance 2001: Recovery from persons holding money of taxpayer

    Income Tax Ordinance 2001: Recovery from persons holding money of taxpayer

    KARACHI- The Federal Board of Revenue (FBR) in Pakistan has been granted enhanced powers under the recently updated Income Tax Ordinance, 2001, enabling it to recover taxes directly from individuals or entities holding money on behalf of a taxpayer.

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  • Income Tax Ordinance 2001: Tax recovery through arrest, attachment of property

    Income Tax Ordinance 2001: Tax recovery through arrest, attachment of property

    KARACHI: Federal Board of Revenue (FBR) has powers to attach moveable or immovable properties and through arrest of a person for recovery of due amount of taxes.

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