FBR considering imposing hefty fines, freezing bank accounts for false or incomplete tax filings

The Federal Board of Revenue (FBR) is planning to take strict action against people who file income tax returns but submit false information.

These actions include fines of up to Rs1,000,000 and freezing their bank accounts.

According to Business Recorder, the tax authority is also considering preventing such individuals from purchasing property or vehicles, cutting off their utilities, and imposing heavy penalties. These steps aim to help the FBR meet its tax collection target for the ongoing month.

Still, these proposals still need approval from the relevant authorities.

Some tax advisers are worried that these strict measures could be misused and end up punishing taxpayers who accidentally make mistakes while filing their tax returns.

Some tax expert have supported this policy, saying that many people are abusing the system by filing “Nil” returns and declaring no assets to avoid paying high taxes or what they are supposed to pay as non-filers. He added that such false declarations are considered perjury, which is a crime under oath.

He also pointed out that the number of “Nil” filers is rising because of the heavy taxes imposed on non-filers. Apart from penalties under section 114(A) of the Income Tax Ordinance, those who file incorrect returns can also face legal action under section 192, he said.

The proposals are said to have been put forward by FBR’s Member Inland Revenue (Operations) to improve enforcement and tackle tax non-compliance.