33,000 IT returns filed since 2013 till date, National Assembly told: 261,000 notices issued

As many as 33,000 income tax returns have been filed since 2013 till date against 261,000 notices issued by the Federal Board of Revenue (FBR) whereas provisional assessments (section 122C of the Income Tax Ordinance) were finalised in 63,000 cases with tax demand of Rs 18 billion.
In a written reply during question-hour session in National Assembly here on Thursday, Finance Minister Ishaq Dar said that action was taken against tax evaders during the last two years. In 473 cases, properties were attached other than bank accounts and 40 persons were arrested in tax evasion cases.
Data was collected through third party sources such as Motor Vehicle Registering Authorities, Educational Institutions, Property Registrars Offices, Development Authorities, Housing Sections, Electricity Distribution Companies, Automobile Manufacturing Companies, and withholding statements. This data is consolidated in the National Data Warehouse which is disseminated to the field formations/offices for action as per law. This entire process is monitored by the Directorate General of Broadening of Tax Base (BTB) which was established for the purpose.
He said that Directorate General, Intelligence and Investigation (IR) has been established which is exclusively pursuing cases of tax fraud and evasion. This Directorate gathers information on tax related issues and investigates tax and fiscal frauds. After thorough investigations which include criminal proceedings, cases are sent to field formations (Regional Tax Offices and Large Taxpayers Units) along with the investigation reports for adjudications. Actions taken by Directorate General Intelligence and Investigation (IR) in tax evasion cases revealed that a total 464 cases of tax evasion have been detected; No of FIRs/Raids is 25 and 13 persons arrested from July 1, 2014 to date.
He said that Federal Board of Revenue field offices deal with cases as per their respective jurisdictions. Through multiple functions and assignments, actions are taken against tax evaders. Some of the functions include, bringing new taxpayers into the tax net, collection of third party data, Desk Audit of tax returns and statements, cross matching of data through manual as well as automated system, such as Computerised Risk Based Evolution of Sales Tax (CREST), conduct of audit, processing of tax evasion complaints, recovery measures etc. Detection of tax evasion is a continuous process.
Tax is detected, assessed to tax, and tax is collected through different modes of recovery.
He said that new policy measures were taken through Finance Act, 2014 aiming to make business costly for the tax evaders and defaulters. One of the steps was to include a new regime wherein different rates of adjustable withholding of Income Tax for income tax returns filers and non-filers on certain transactions have been introduced. The higher rates of tax for non filers will not only prod non filers to file returns and declare their income from all sources, but also provide a database to the FBR for identification of potential taxpayers to be pursued for broadening tax base.
On the customs side, the Finance Minister said that the action against tax evaders/defaulters of Customs duty and taxes is taken under the provisions of Sections 32, 32A and 202 of the Customs Act, 1969 read with Customs Rules, 2001 which includes criminal as well as quasi judicial proceedings.
Tax evaders usually employ different methods to evade revenue including smuggling of goods via unauthorised routes; misuse of concessionary imports/export regimes and misdeclaration/under invoicing at import/export stage. Pakistan Customs has adopted following measures to minimise/curb tax evasion.
To curb the menace of smuggling, government has reinvigorated its enforcement measures, which include: intelligence sharing, launching of joint operations and provisions of support/facilitation to the Customs department by the Law Enforcement Agencies.
In this regard, anti-smuggling powers have been entrusted to Frontiers Corps, Coast Guards and Pakistan Maritime Security Agency to check the smuggling of contraband goods. As a result of the increased anti-smuggling activities by Pakistan Customs; a visible increase in seizure of smuggled goods can be observed. The CIF value of goods seized from 2012-13 to 2014 up to December 2014 stood at Rs 12,738.15 million.
The enforcement measures also included pre-inspection survey and post exportation audit of concessionary imports/exports regimes, which are regularly conducted.
Strict vigilance have been undertaken over misdeclaration and under/over invoicing of goods at both import and export stages. Investigation and Prosecution Wings of Custom's field formations have been strengthened to enable them to investigate and pursue cases effectively to establish deterrence against tax evaders.
The FBR has been pursuing outstanding government dues relentlessly.
Increased emphasis has been made to deploy and post skilled and dedicated staff at various sensitive and risk-prone stations to ensure that no revenue leakages occur. During the last two years, 6,660 cases of seizures/contravention, misdeclaration or under/over invoicing have been detected involving an amount of Customs Duty and other taxes of Rs 15825.851 million.
In this connection, 110 FIRs have been lodged whereas, 179 persons have been arrested. Resultantly, an amount of Rs 2425.978 million has been recovered so far. Moreover, remaining cases are being pursued diligently at different judicial/quasi-judicial fora with an effort to recover the evaded amount along with fine and penalties, he added.