FBR seeks sweeping powers against tax dodgers

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed powers to have gas and electricity connections of those tier-1 retailers who fail to register and integrate with the board’s computerised system disconnected.

The Finance Bill 2022 proposed insertion of Section 14AB in the Sales Tax General Order for discontinuance of gas and electricity connections whereby it stated that notwithstanding anything contained in this act or any other law for the time being in force, the board shall have power through Sales Tax General Order to direct the gas and electricity distribution companies for discontinuing the gas and electricity connections of any person who fall in the following categories, namely:– Any person, including tier-1 retailers, who fail to register for sales tax purpose or (b) Notified tier-1 retailers registered but not integrated with the Board’s Computerized System provided that upon registration or integration, as the case may be, of the above said persons, the board shall notify the restoration of their gas or electricity connection through Sales Tax General Order.

On the income tax side, the FBR also proposed sweeping powers to enforce the filing of tax returns with the purpose to broaden the tax base.

The Finance Bill 2022 proposed insertion of 114B by stating that notwithstanding anything contained in any other law for the time being in force, the Board shall have the powers to issue income tax general order in respect of persons who are not appearing on active taxpayers’ list but are liable to file the return under the provisions of the ordinance.

(2) The income tax general order issued under subsection (1) may entail any or all of the following consequences for the persons mentioned therein, namely:– (a) disabling of mobile phones or mobile phone SIMS; (b) discontinuance of electricity connection; or (c) discontinuance of gas connection. (3) The Board or the Commissioner having jurisdiction over the person mentioned in the income tax general order may order restoration of mobile phones, mobile phone SIMS and connections of electricity and gas, in cases where he is satisfied that — (a) the return has been filed; or (b) person was not liable to file return under the provisions of the Ordinance. (4) No person shall be included in the general order under sub-section (1) unless the following conditions have been met, namely:– (a) notice under sub-section (4) of section 114 has been issued; (b) date of compliance of the notice under sub-section (4) of section 114 has elapsed, and (c) the person has not filed the return. (5) The action under this section shall not preclude any other action provided under the provisions of the Ordinance."