Tax department recovers Rs1.1bln from defaulters

KARACHI: The Federal Board of Revenue (FBR) has recovered more than one billion rupees from defaulters on nonpayment of taxes by seizing their bank accounts, sources said on Saturday.

The sources said Regional Tax Office (RTO) – II Karachi has attached around 400 bank accounts of defaulters and recovered around Rs1.1 billion.

The sources said the tax office last month served notices to more than 1,200 defaulted taxpayers for recovery of two billion rupees. The recovery has been made by the Broadening of Tax Base (BTB) Zone, established at the RTO Karachi for the purpose.

The sources said most of defaulters could not make full tax payments. The tax office issued notices to 16,000 salaried individuals to enforce income tax returns and declare their source of income.

“In some cases, salaried individuals have failed to explain their source of income,” an official at the RTO said.

Chairman FBR Jehanzeb Khan said the FBR recovered Rs1.85 billion in an ongoing broadening of tax base campaign. Khan was addressing a meeting at the Federation of Pakistan Chambers of Commerce and Industry.

The RTO Karachi sources said the tax office would invoke laws to arrest defaulters and attach their valuable assets to recover outstanding tax amounts.

The BTB wing has launched a massive drive against non-compliant taxpayers following the directives of Prime Minister Imran Khan.

The RTO sources said the tax office also attached bank accounts of five high net-worth individuals for recovery. However, sources declined to reveal the amount recovered from such an action.

The RTO-II Karachi has also finalised the next phase of action against tax defaulters. In the next phase, the sources said, properties would be attached or individuals be arrested under a law (section 138 of the Income Tax Ordinance 2001).

The BTB office directed the Chief Commissioner Inland Revenue of RTO-II to take precautionary measures before launching the second phase. “The individuals against whom action has been initiated are influential and well known personalities,” the office said in a statement. “Therefore, further guidance is solicited.”

The tax officials faced tough resistance and in some cases physical assaults when they took action against claimants of bogus sales tax refunds around five years back.

RTO sources said the tax officials should be provided with security when taking action against tax evaders. Teams of tax officials are currently conducting on-site raids to broaden tax base and verify claimants of tax refunds.