Section 178 of the Income Tax Ordinance, 2001, as amended by the Finance Act, 2021, empowers tax authorities to seek assistance from various entities, including the police, Customs officers, and other government agencies.
This collaborative approach aims to strengthen the effectiveness of tax enforcement and ensure a more coordinated effort in upholding tax compliance.
The amended Section 178 reads: “Assistance to Commissioner.— Every Officer of Customs, Provincial Excise and Taxation, District Coordination Officer, District Officers including District Officer – Revenue, the Police and the Civil Armed Forces is empowered and required to assist the Commissioner in the discharge of the Commissioner’s functions under this Ordinance.”
This provision grants tax authorities the authority to call upon the support of a range of entities, including officers from Customs, Provincial Excise and Taxation, District Coordination Officers, District Officers (including those responsible for Revenue), the Police, and the Civil Armed Forces. The objective is to foster a collaborative environment where various agencies work together to ensure the effective implementation of tax laws.
The assistance outlined in Section 178 is not limited to any specific aspect but covers the broader spectrum of the Commissioner’s functions under the Income Tax Ordinance, 2001. This may include tasks related to tax assessments, investigations, audits, and the overall enforcement of tax regulations.
The collaboration between tax authorities and other government agencies is crucial for addressing challenges related to tax evasion, fraud, and non-compliance. By leveraging the expertise and resources of entities such as the police and armed forces, tax authorities can enhance their capacity to enforce tax laws and maintain the integrity of the tax system.
Industry experts have welcomed this collaborative approach, emphasizing the importance of a united front in addressing tax-related issues. The involvement of various agencies not only expands the reach and impact of enforcement efforts but also sends a clear message about the seriousness with which tax evasion and non-compliance are viewed.
This amendment aligns with international best practices, where collaboration between tax authorities and other law enforcement agencies is considered essential for effective tax administration. The sharing of information and resources among different entities contributes to a more comprehensive and robust approach to tackling tax-related challenges.
The amendment to Section 178 of the Income Tax Ordinance, 2001, empowering tax authorities to seek assistance from police and other agencies, signifies a proactive step towards strengthening tax enforcement in Pakistan. This collaborative approach is expected to foster a more coordinated effort in upholding tax compliance, ultimately contributing to a fair and effective tax administration system.
