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Wednesday Jun 30 2021
By
Web Desk

Govt forms high-powered committee to decide about tax defaulters' arrest

By
Web Desk
Finance Minister Shaukat Tarin. File photo
Finance Minister Shaukat Tarin. File photo

  • Individuals found guilty of tax concealment of Rs100mn (filer) and Rs25mn (non-filer) may be arrested.
  • Finance minister, chairman FBR and FBR's senior-most member included in high-powered committee.
  • In case of a company, any director or officer responsible for the actions of a company in the offence will be liable for arrest.


ISLAMABAD: The federal government has formed a high-powered committee to decide cases of tax default on concealment of Rs100mn income (in the case of a filer) and Rs25mn (in the case of a non-filer), as per a report in The News.

This came into effect when the revised sections 203-A and B of the Finance Bill 2021-22 were passed by the National Assembly.

As per the bill, a committee comprising the finance minister, chairman Federal Board of Revenue (FBR) and the FBR’s senior-most member would decide whether a tax defaulter, in a case of willful concealment of income, should be arrested or not.

Where the offence of concealment of income which has resulted in non-payment of tax of Rs100 million and above, in the case of a filer, and Rs25mn or above in the case of a non-filer, the procedure provided in section 203-B shall be applicable.

Where the offence of concealment of income which has resulted in non-payment of tax of Rs100 million and above, in the case of a filer, and Rs25mn or above in the case of a non-filer, the procedure provided in section 203-B shall be applicable.

Where on the basis of material evidence brought on record as a result of an audit conducted by the auditors in terms of sub-section (8) of section 177 read with section 214C of the Income Tax Ordinance, an assessment is made or amended under section 121 or 122 of this Ordinance, as the case may be, and the assessing officer records a finding that the taxpayer has committed the offence of concealment of income which has resulted in non-payment of tax of Rs 100mn and above, in the case of a filer and Rs 25mn or above in the case of a non-filer, the taxpayer may be arrested after obtaining written approval of the committee.

All arrests made under this ordinance shall be carried out by the relevant provisions of the Code of Criminal Procedure 1898, it stated. Where any person has committed offence of concealment of income or any other offence warranting prosecution under this Ordinance, the Chief Commissioner with the prior approval of the Board may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the amount of tax due along with such default surcharge and penalty as it determined under the provisions of this Ordinance.

Where the willful concealment of income case involves a company, every director or officer of that company, whom the authorised officer has reason to believe is personally responsible for the actions of the company contributing to the offence of concealment of income, or any offence warranting prosecution under this Ordinance, shall be liable to arrest.

As per this subsection, any arrest will not absolve the company of the liabilities of paying tax, default surcharge and penalty imposed under this Ordinance, the amended bill added.

Through amendments to the Finance Bill 2021, the increase in tax on milk and dairy products from 10-17% was withdrawn, 17% tax on gold and silver was reduced to 1% and 3% respectively whereas on its value addition the tax would remain 17%.

The reduced rate of sales tax on poultry and cattle feed has now been restored to 10% while no tax has been levied on flour and flour products.