ISLAMABAD: Persons involved in tax frauds would face imprisonment up to five years (tax evaded amount less than Rs 1 billion) and imprisonment up to 10 years (tax evaded amount Rs 1 billion or more).

According to the amended Finance Bill 2024, the person who commits, causes to commit or attempts to commit the tax fraud shall pay a penalty of Rs 25,000 or 100 percent of the amount of tax evaded or sought to be evaded, whichever is higher.

Without prejudice to the above, he shall also be liable, upon conviction by a special judge to imprisonment for a term which may extend to five years if the tax evaded or sought to be evaded is less than Rs1 billion and which may extend to 10years if the tax evaded or sought to be evaded is Rs1 billion and above, and fine which may extend to an amount equal to the amount of tax evaded or sought to be evaded, or with both.

Scope of ‘tax fraud’ phrase widened

The person who abets or connives in commissioning of tax fraud shall be liable, upon conviction by a Special Judge to imprisonment for a term which may extend to five years if the tax evaded or sought to be evaded is less than Rs1 billion and which may extend to 10 years if the tax evaded or sought to be evaded is Rs1 billion and above, and with fine which may extend to an amount equal to the amount of tax evaded or sought to be evaded or with both, the amended Finance Bill added.

Copyright Business Recorder, 2024