The Federal Board of Revenue (FBR) has recovered Rs. 5.2 billion from its ongoing crackdown against tax defaulters and non-compliant wealthy individuals.
The board has also taken action against 4,512 bank accounts, vehicles, and properties while arresting nine defaulters. The FBR has released official data regarding the outcome of the ongoing drive against tax evaders.
The revenue authority said that the crackdown on tax defaulters in all major cities of the country “would continue in coming months especially against the tax defaulters and the persons out-of-the-tax-net.”
In a written statement, the FBR stated that the drive particularly focuses on three important areas.
“The areas are enforcement action under section 175 of Income Tax Ordinance 2001 as well as sections 38 and 40B of the Sales Tax Act 1990, which give tax officials the power to enter and search premises as well as post inspection officers on the premises to monitor sales and inventory position,” reads the statement.
Exercising these powers, the authority has taken action against 424 cases that concerned Rs. 8.27 billion in revenue out of which Rs. 3.282 billion was recovered.
The other area of focus is where the taxpayers owe large arrears and have no stay order from any court. In this area, the authority has arrested nine individuals, attached 4,378 bank accounts, 78 properties, and 46 vehicles, and imposed one embargo.
The third area of focus is high-net-worth individuals who have been identified of observing non-compliance or lack of full compliance with the tax obligations. The FBR has located 6,451 cases in this regard and enforced 2,671 returns under the campaign.
The board has also been able to generate a tax demand up to Rs. 2.671 billion through the crackdown and recovered Rs. 1.372 billion from them.
However, the business community is accusing the tax officials of harassment. It claims that the FBR is conducting raids without a warrant or prior notice.