ISLAMABAD: The Federal Board of Revenue (FBR) has empowered the Chief Commissioners (Inland Revenue) to review the orders of blacklisting and suspension of sales taxpayers.

Explaining the enforcement provisions of the Finance Act 2024, the FBR informed that prior to Finance Act, 2024, the order of suspension and blacklisting were appealable orders before the Appellate Tribunal Inland Revenue (ATIR).

The order of suspension along-with order of blacklisting passed by the Commissioner has now been made liable to review by the Chief Commissioner either on his own motion or on receipt of request/application from the registered person.

The Chief Commissioner may after making such inquiry as deemed necessary, modify the order after providing an opportunity of being heard to the registered person, the FBR added.

The FBR further explained that the section 11E has been introduced to recover tax not levied, short levied or erroneously refunded either through a deliberate act or due to inadvertence. Section 11E empowers an officer of Inland Revenue not below the rank of Assistant Commissioner to issue a showcause notice to recover tax not paid, short paid, claim of input/refund not admissible or to recover refund not due.

The FBR clarified that the criminal proceedings have been separated from civil liability by bringing amendment in sections 33 and 37A of the Sales Tax Act, 1990. The words “tax evaded or sought to be evaded” have been introduced in these sections through Finance Act, 2024 whereby criminal prosecution proceedings may be initiated irrespective and independent of the civil liability at any time before initiating or concluding the civil liability proceedings by a sales tax authority.

Offences relating to tax fraud at Serial No 11 and 13 of Section 33 have been made liable to more stringent punishments. Any person who commits, causes to commit or attempts to commit tax fraud or abets or connives in commissioning of a tax fraud shall be liable, upon conviction by a Special Judge to imprisonment for a term which may extend upto five years if the tax evaded or sought to be evaded is upto five hundred million and above, and which may extend to ten years if the tax evaded or sought to be evaded is one billion and above and fine which may extend to an amount equal to the amount of tax evaded or sought to be evaded.

The same punishment applies for any person who submits a false or forged document to any officer, who destroys, alters, mutilates or falsifies the records, or who knowingly or fraudulently makes a false statement, false declaration, false representation, false personification, gives any false information or issues or uses a forged or false document, the FBR added.

Copyright Business Recorder, 2024