FBR to Freeze Bank Accounts of Filers Who Deliberately Submit Incorrect Tax Returns

The Federal Board of Revenue (FBR) will freeze bank accounts of filers of income tax returns, who would deliberately submit incorrect or incomplete returns during the current year. The FBR has also proposed a ban on purchasing immovable properties and vehicles, disconnecting their utility connections, and imposing heavy fines on filers who would file incorrect or incomplete returns. The policy measures have been proposed by FBR Member Inland Revenue (Operations) to strengthen enforcement and address tax non-compliance. Member Inland Revenue (Operations) has proposed policy changes focused on curbing tax non-compliance, particularly among those submitting inaccurate or incorrect tax returns. These measures would apply across the board, including to Tier-1 retailers and manufacturers, and cover both Sales Tax and Income Tax. In addition to imposing a fine of Rs. 1,000,000 for each incorrect/incomplete return filed, FBR proposed the following punitive measures to ensure compliance and accurate return filing: The FBR believed these steps would be instrumental in strengthening our tax enforcement regime and achieving our fiscal targets. We look forward to discussing these proposals further and are open to any suggestions that may help enhance these policy measures for maximum impact.