Islamabad: The Federal Board of Revenue (FBR) has issued official warnings to approximately 11,000 companies and individuals, urging them to address discrepancies in their sales tax returns or face severe penalties, including freezing of bank accounts, potential business closures, and substantial fines.
The move comes after an extensive review of the tax returns submitted over the past five years.
The notices were sent last month as part of the ongoing efforts by the FBR to ensure better tax compliance amid negotiations with the business community.
These warnings signal the FBR’s determination to recover the outstanding sales and income taxes from individuals and businesses across Pakistan.
FBR Chairman, Rashid Langrial, stated that many taxpayers are contributing far less than their actual tax liabilities.
As a result, the FBR has adopted a risk management system to detect inconsistencies in tax filings.
This system helps identify discrepancies in returns submitted by both individuals and companies over the last five years.
The FBR issued 11,000 “nudging” notices in the first phase of this initiative, primarily through corporate tax offices in Karachi, Lahore, and Islamabad.
The notices are intended to be non-intrusive and legally non-binding, aiming to encourage behavioral compliance rather than imposing immediate legal consequences.
The notices explicitly warned recipients that continued failure to correct discrepancies would be interpreted as a deliberate choice to avoid compliance.
In some cases, businesses have been cautioned that persistent non-compliance could lead to on-site monitoring, best judgment assessments by tax commissioners, and potential financial penalties.
The FBR made it clear that any further delay in addressing the discrepancies in tax returns would lead to serious legal actions, including freezing of bank accounts and sealing of business premises for continued non-compliance.
The FBR’s aggressive stance highlights its commitment to ensuring a fair and transparent taxation system.
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