The Fed-eral Board of Revenue (FBR) has issued arrest orders of 100 top defaulters of sales tax and income tax under the enforcement drive launched country-wide to send a clear message that the hey days for taxes/duties evasion are over. Sources told Business Recorder here on Friday the FBR has compiled a list of top 100 tax defaulters with arrest orders to the field formations.
The idea behind this bold initiative is to give exemplary punishment to the defaulters to set precedence for the registered taxpayers across the country. The exercise has been launched following approval of Finance Minister Shaukat Tarin to arrest some big fish so that no one should think of escape. Only those defaulters would be arrested where all legal formalities under the tax laws have been completed.
Sources said the list of the chronic tax defaulters would shortly be issued to the Director Generals of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) for arrest after completion of legal formalities. The FBR would provide permanent business addresses, National Tax Numbers (NTNs), Sales Tax Registration Numbers (STRNs) and other particulars of the tax defaulters.
In this regard, the FBR has allowed the DGs LTUS/RTOs to invoke harsh provisions of the Sales Tax Act and Income Tax Ordinance to immediately arrest these defaulters. The FBR would recover the due amount of sales tax and income tax after arrest of these defaulters. This would result in recovery to the tune of millions of rupees under the enforcement exercise. Sources said the FBR has issued the final list keeping in view the names of the defaulters submitted by the DGs LTUs/RTOs.
Most of the chronic defaulters included business units engaged in manufacturing process, some textile/flour mills, service providers, big traders/retailers and wholesalers, etc. The owners of these units would be arrested which would definitely improve compliance of the registered units.
The government wanted to clearly send message to the masses and the business community that the present regime is fully committed to taking enforcement actions against the defaulters and the non-filers of returns. The arrest orders of around 100 top defaulters has reflected that the FBR has launched action against the evaders and defaulters after expiry of return filing deadline of January 25, 2010, sources added.