Business
FBR to set up special wing to investigate tax fraud cases
Giving false information in tax return will be punishable with imprisonment up to five years
Islamabad: The Federal Bureau of revenue (FBR) decided to establish a special wing to investigate tax fraud cases. A person who fails to submit a tax return may be served notice or summons.
The FBR has issued a notification to amend the Sales Tax Act, 1990. It was decided to establish a special wing to investigate tax fraud cases. Giving false information in the tax return will be punishable with imprisonment up to five years, and a fine of Rs25,000 or 100%.
According to the notification, in case of tax evasion less than Rs1 billion, the punishment period will be five years imprisonment, and for tax evasion of more than Rs1 billion, the sentence period will be 10 years.
Tax evasion of more than one billion rupees will be fined equally to the actual amount. False documents, concealment of information, or damage to tax revenue will also be considered fraud. The deliberate understatement of tax or underpayment of dues will also fall under the category of fraud. The law will apply to claim excess tax credit against duty paid.
The Tax Fraud Investigation Wing will investigate cases related to tax fraud. It will also have an Intelligence and Analytical Unit and Digital Forensic Unit which will also have the power to demand electronic invoices from any person or company. These invoices can be checked in real time with the computerised system.