Pakistan Tightens Measures Against Tax Evasion with New Amendment
KARACHI β Pakistan’s authorities are intensifying efforts to curb tax evasion, with the Federal Board of Revenue (FBR) set to share income tax return data with banks to cross-check against banking records. This move comes under the Tax Laws (Amendment) Bill 2024, recently presented in the National Assembly, targeting non-filers and strengthening tax compliance.
The proposed amendment introduces strict restrictions on purchasing new cars, buying and selling property, trading securities, and even opening or operating bank accounts. The bill also includes limits on cash withdrawals from banks.
Under these changes, FBR will be empowered to exchange data with financial institutions, particularly for high-risk individuals. Banks will be required to report individuals whose banking activities do not align with the FBRβs data algorithms. The FBR will share relevant details such as income, taxable turnover, wealth statements, and financial records of individuals and companies.
The amendment further authorizes the Commissioner of Inland Revenue to instruct banks to freeze the accounts of individuals who fail to register with the sales tax department. Additionally, the transfer of immovable property for non-registered individuals will be blocked.
Non-filers will not be allowed to open or maintain regular bank accounts, with the exception of Asaan accounts, and withdrawal limits will be imposed based on FBR’s criteria.
These new measures aim to strengthen tax compliance, prevent tax evasion, and ensure that individuals and businesses only engage in significant financial transactions if they are in good standing with tax authorities.
