In a move that highlights the stringent measures taken by the Federal Board of Revenue (FBR) to recover outstanding tax amounts, taxpayers should be aware that the FBR possesses the authority to sell immovable properties.
This power allows the FBR to attach and subsequently auction off properties to recover unpaid taxes.
Under the income tax rules, the FBR can make an attachment of immovable property through an order that prohibits the defaulter from transferring or encumbering the property in any way. This order also bars any third party from deriving benefits from such transfers or charges.
The order of attachment is issued by the Commissioner in a prescribed format, as outlined in Rule 158 of the Income Tax Rules, 2002. An excerpt from the order reads:
ORDER OF ATTACHMENT OF IMMOVABLE PROPERTY
(Rule 158 of the Income Tax Rules, 2002)
To,
XXX
S/o …….
You have failed to pay a sum of Rs. … payable by you, for which a notice under Section 138(1) of the Income Tax Ordinance, 2001, dated [insert date], has already been served upon you.
In view of the said default and in pursuance of the recovery of income tax arrears, you, XXX, are hereby prohibited and restrained until further orders of the undersigned from transferring the immovable property No. … located at … or subjecting the same to a charge in any manner. All persons are prohibited from taking any benefit under such transfer or charge.
Furthermore, the rules dictate that the order of attachment must be proclaimed at a location near the attached property, employing traditional methods like the beat of drums. A copy of the order is also affixed prominently on the property and the Commissioner’s office.
The process doesn’t end with attachment; the Commissioner of Tax is authorized to direct the sale of any attached immovable property to satisfy the outstanding tax notice. The intended sale is then proclaimed in the local language of the district, ensuring transparency and public awareness.
Taxpayers are advised to stay informed about their tax obligations and settle any outstanding dues promptly to avoid the risk of having their immovable properties subjected to attachment and subsequent sale by the FBR.
