ISLAMABAD: The issuance of sales tax invoice without actual supply of goods in the market would now be considered a crime of “tax fraud” under the Finance Bill 2024.

The Federal Board of Revenue (FBR) has broadened the scope of tax fraud to deal with the cases of intentional tax evasion or illegal refunds.

About the broadening the scope of tax fraud under the Finance Bill 2024, a tax expert stated that the Bill proposed to enhance the scope of tax fraud in case of intentional tax evasion or obtaining undue refund and specifying incidences that may lead to tax fraud, which may include the following: Suppression of taxable sales/ receipts; false claim of input tax; supply of taxable goods without tax invoice and issuance of tax invoice without actual supply of goods leading to inadmissible claim of input tax/ refund.

Now the tax fraud would also cover tax evasion by availing undue input tax or claim of inadmissible refund by any other means; failing to deposit any amount collected as tax after expiry of three months from due date of payment and creating or using false financial records, documents, or information to evade taxes or claim inadmissible refunds, whether through human, mechanical, or electronic methods.

Tax fraud would also cover tampering or destroying any evidence /documents required to be maintained, or dealing with goods which are liable to confiscation.

Further, the Finance Bill proposes to treat the incidences as intentional unless the person accused proves otherwise, tax expert added.

Copyright Business Recorder, 2024