The Federal Board of Revenue (FBR) has issued notices to nearly 11,000 companies and individuals, urging them to rectify discrepancies in their recent sales tax returns or face consequences, including penalties, freezing of bank accounts, and potential business closures.
According to a report by Express Tribune, the notices were issued last month amid ongoing negotiations between the business community and the government, highlighting the authorities’ determination to recover outstanding sales and income taxes from both individuals and companies.
According to the report, FBR Chairman Rashid Langrial believes that many existing taxpayers are contributing significantly less than what they owe. To address this, he has initiated the use of a risk management system aimed at identifying discrepancies in tax returns filed by individuals and entities over the past five years.
Citing sources, the report said that around 11,000 ‘nudging’ notices were issued in the first phase by corporate tax offices in Karachi, Lahore, and Islamabad.
According to FBR officials, the “non-intrusive and legally non-binding nudging notices” were intended to promote behavioral and social compliance among taxpayers.
“Please correct anomalies in your sales tax return. Your failure to act will be viewed as a choice not to comply,” read the notices issued to companies and individuals in Lahore.
The FBR cautioned that continued non-compliance and failure to file accurate returns could lead to financial penalties, on-site monitoring by FBR staff, and best judgment assessments by tax commissioners, potentially resulting in substantial fines.
The notices also warned thousands of recipients that persistent non-compliance could lead to the freezing of bank accounts and sealing of business premises.
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