“Taxpayers Face Consequences: FBR Freezes Bank Accounts Over False Returns

FBR Takes Stern Action Against Tax Evaders

DTD-September 15, 2024

1 minute read

A notification issued on Saturday announces that the new deadline is now August 23, instead of the original date of August 18. This five-day extension is designed to give taxpayers extra time to file their returns for both sales tax (ST) and federal excise (FE), aiming to facilitate a smoother filing process. This extension is expected to ease the pressure on businesses and individuals who might have struggled to meet the initial deadline. The FBR hopes that this move will enhance compliance and reduce the likelihood of penalties for late submissions. Also Read: Punjab Imposes New Salary Tax In a related development, the Punjab government has introduced a new professional tax through an amendment to the Punjab Finance Act of 1977. Announced on Friday, this tax will be directly deducted from the salaries of employees across various sectors, adding an extra financial burden on workers. This decision has raised concerns among residents and drawn criticism of the Punjab government’s economic policies. Critics argue that this new tax represents another significant strain on the financially vulnerable. The amendment mandates that all companies operating within the province deduct this tax from their employees' salaries, further intensifying the financial challenges for many. — A notification issued on Saturday announces that the new deadline is now August 23, instead of the original date of August 18. This five-day extension is designed to give taxpayers extra time to file their returns for both sales tax (ST) and federal excise (FE), aiming to facilitate a smoother filing process. This extension is expected to ease the pressure on businesses and individuals who might have struggled to meet the initial deadline. The FBR hopes that this move will enhance compliance and reduce the likelihood of penalties for late submissions. Also Read: Punjab Imposes New Salary Tax

Islamabad- The Federal Board of Revenue (FBR) has proposed a series of severe penalties to combat tax non-compliance, targeting individuals and businesses that submit incorrect or incomplete income tax returns. The measures, aimed at ensuring accurate and complete tax filings, include:

– A fine of Rs. 1,000,000 for each incorrect or incomplete return
– Disconnection of utilities for inaccurate returns
– Freezing of bank accounts for those who file inaccurate returns
– Ban on purchasing property or vehicles for those who file inaccurate returns

To enforce these penalties, the FBR will utilize:

– Third-party monitoring for increased transparency
– AI and ML-assisted audits for immediate identification and addressing of incorrect returns

The FBR believes these measures will strengthen its tax enforcement regime and help achieve fiscal targets. The board is open to suggestions to enhance these policy measures for maximum impact.

The proposed measures will apply to all taxpayers, including Tier-1 retailers and manufacturers, in an effort to curb tax evasion and ensure compliance.

DTD-September 15, 2024

1 minute read