Taxpayers in Pakistan should be fully aware that income tax laws empower the Federal Board of Revenue (FBR) to enter business or residential premises without prior notice. With stricter enforcement measures in place for tax year 2026, compliance and proper record-keeping have become more important than ever.
Under Section 175 of the Income Tax Ordinance, 2001, the FBR has been granted wide-ranging authority to ensure enforcement, conduct audits, and carry out surveys of persons liable to tax.
🔍 When Can FBR Enter Your Premises?
To enforce tax laws, the Commissioner or an authorized officer may enter any premises at any time and without giving advance notice. This power applies during:
• Income tax audits
• Tax surveys
• Investigations into non-compliance or under-reporting
🏢 Scope of FBR’s Powers Under Section 175
Once inside the premises, authorized officers may:
✅ Access accounts, documents, computers, and electronic systems (including real-time access)
📑 Copy or extract financial records and computer-stored data
🗄 Impound accounts, documents, or storage devices for examination or prosecution
💻 Retain computers if digital data is not provided in accessible form
📋 Prepare an inventory of articles found on the premises
The Commissioner may also authorize valuers or technical experts to enter premises for specialized tasks.
🤝 Duties of the Premises Occupier
The owner, manager, or responsible person on the premises must:
• Provide reasonable facilities and assistance
• Allow effective access to records and systems
Failure to cooperate can lead to legal consequences.
🧾 Safeguards for Taxpayers
To ensure transparency:
• All impounded items must be properly signed for
• Taxpayers can inspect and copy impounded records during office hours
• Compensation must be paid if records or equipment are lost or destroyed
⚠ Key Takeaway for 2026
Section 175 overrides claims of privilege or public interest, making unannounced access fully lawful. Taxpayers should maintain accurate records, comply with tax obligations, and ensure readiness for any FBR inspection.
🔐 Being prepared is the best protection. Stay compliant, stay informed.
📌 Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Tax laws and their interpretation may change, and their application can vary based on individual circumstances. Readers are advised to consult a qualified tax advisor or legal professional before taking any action based on the information provided. Neither the author nor the publisher accepts any liability for decisions made in reliance on this content.