The Federal Board of Revenue (FBR) has issued new standard operating procedures (SOPs) to handle cases of tax fraud committed by businesses and traders under Section 37A of the Sales Tax Act, 1990.
According to the instructions sent to field formations, cases involving evidence of tax fraud must be referred to the intelligence directorate.
The directorate will review them within 30 days to determine whether a formal investigation under Section 37A is warranted.
The FBR said the SOP aims to establish a structured process for inquiries and investigations so that proceedings remain legally sustainable before appellate forums.
Under the law, authorized officers may exercise powers similar to a civil court and can also make arrests where required.
If an investigation is initiated after a preliminary inquiry, officials will proceed in accordance with Sales Tax General Order No. 2 of 2025, the FBR added.
