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Taxpayers should file true declarations to avoid 100 percent penalty

Taxation

KARACHI: The tax laws have explained that any false or misleading statement will liable to penalty of 100 percent of the amount of tax short paid.

Officials at the Federal Board of Revenue (FBR) said that taxpayers should ensure correct and true entries in their income tax returns and wealth statement while filing their income tax returns for tax year 2019.

The last date for filing income tax returns for tax year 2019 is December 16, 2019.

According to Income Tax Ordinance, 2001, any person who –

(a) makes a false or misleading statement to an Inland Revenue Authority either in writing or orally or electronically including a statement in an application, certificate, declaration, notification, return, objection or other document including books of accounts made, prepared, given, filed or furnished under this Ordinance;

(b) furnishes or files a false or misleading information or document or statement to an Income Tax Authority either in writing or orally or electronically;

(c) omits from a statement made or information furnished to an Income Tax Authority any matter or thing without which the statement or the information is false or misleading in a material particular.

Such person shall pay a penalty of twenty five thousand rupees or 100 percent of the amount of tax shortfall whichever is higher:

Provided that in case of an assessment order deemed under section 120, no penalty shall be imposed to the extent of the tax shortfall occurring as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayers’ position.

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