FBR Redefines ‘Tax Fraud,’ Establishes Wing to Investigate Cases

Pakistan, July 26, 2024: The Federal Board of Investigation updated the definition of “tax fraud” and has established a special wing to investigate the cases.

The newly established tax fraud investigation Wing-Inland Revenue will identify and prosecute tax fraud cases. This special unit will deploy forensic accounting techniques and advanced data analytics. Further units, including Fraud Investigation, Fraud intelligence and analysis, accountants, legal, administrative unit, digital forensic, and scene of crime, will assist the team.

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The FBR further announced its plan to collaborate with international tax authorities. The purpose is to tackle cross-border tax evasion and ensure that Pakistan’s tax net extends globally.

Moreover, the updated Federal Excise Act 2005 and the Sales Tax Act have introduced stricter rules to improve tax compliance among retailers. According to the new laws, retailers who sell cigarette packs without proper tax stamps or with fake stamps, labels, or barcodes will face severe penalties. In worst cases, the outlets could be sealed under the new regulations.

• The updated Sales Tax Act also gives the Federal Board of Revenue (FBR) the power to mandate the use of electronic invoicing systems. These systems will be integrated with the FBR’s computerized system to allow real-time reporting of sales.

These changes aim to enhance transparency and ensure better compliance with tax laws. FBR is leaving no stone unturned in ensuring more accurate and timely tax reporting. Stay Connected with RBS to get the latest updates on FBR moves and regulatory reforms