Section 192 of the Income Tax Ordinance, 2001, as updated up to June 30, 2021, through the Finance Act, 2021, recommends a three-year jail term for individuals found guilty of making false statements before the Commissioner Inland Revenue (IR).
The provision emphasizes the gravity of providing inaccurate information in any verification, return, or document submitted under the ordinance.
Text of Section 192 – Prosecution for False Statement in Verification:
Section 192 of the Income Tax Ordinance, 2001, reads as follows:
192. Prosecution for false statement in verification. Any person who makes a statement in any verification in any return or other document furnished under this Ordinance which is false and which the person knows or believes to be false, or does not believe to be true, the person shall commit an offence punishable on conviction with a fine up to one hundred thousand rupees or imprisonment for a term not exceeding three years, or both.
(1) Stringent Penalties for False Statements: The primary objective of Section 192 is to deter individuals from providing false information in tax returns or any other documents submitted under the Income Tax Ordinance. The provision imposes severe penalties on those found guilty, including a hefty fine of up to one hundred thousand rupees and the possibility of imprisonment for a term not exceeding three years.
(2) Safeguarding Tax Administration Integrity: The inclusion of such stringent measures underscores the FBR’s commitment to maintaining the integrity of the tax administration system. False statements can not only distort financial data but also undermine the effectiveness of tax enforcement efforts. This provision aims to safeguard the accuracy of information provided by taxpayers, ensuring the reliability of the tax assessment process.
(3) Ethical and Legal Obligations: Taxpayers are reminded of their ethical and legal obligations to provide accurate and truthful information in all verifications, returns, and documents submitted under the ordinance. The provision aims to create a culture of compliance and transparency, discouraging any attempts to mislead tax authorities.
(4) Role of Commissioner Inland Revenue: The reference to making false statements before the Commissioner Inland Revenue highlights the pivotal role of tax authorities in verifying the accuracy of information provided by taxpayers. This emphasizes the importance of cooperation and transparency in dealings with tax officials to facilitate a fair and effective tax assessment process.
(5) Finance Act, 2021 Amendments: The amendments brought through the Finance Act, 2021, have strengthened the punitive measures outlined in Section 192. By introducing the possibility of imprisonment along with a substantial fine, the FBR aims to send a clear message about the zero-tolerance stance against false statements in tax-related documents.
Section 192 of the Income Tax Ordinance, 2001, reflects the FBR’s commitment to ensuring the accuracy and reliability of information provided by taxpayers. The stringent penalties for making false statements underscore the seriousness with which the authorities view such offenses. As taxpayers navigate the complexities of the tax system, it becomes imperative to exercise due diligence and provide truthful and accurate information to avoid legal repercussions outlined in Section 192. This measure contributes to the overall integrity and fairness of the tax administration system, reinforcing the importance of compliance and ethical conduct in financial matters.
