The National Board of Revenue (NBR) has directed field-level tax regions to strengthen their intelligence and investigation activities to prevent tax evasion and accelerate the recovery of unpaid taxes. According to a directive issued by the office of the Member (Tax Audit, Intelligence and Investigation) of the NBR, detailed guidelines have been provided on the formation of Intelligence and Investigation teams in each tax zone, their operational procedures, the basis for preparing recommendations, and the approval process by the committee for initiating revenue recovery actions.
The directive states that the investigation teams will initiate inquiries based on various types of intelligence reports, allegations of tax evasion, information published in print and electronic media, irregularities such as tampering or overwriting in income tax files and registers, abnormal declarations of tax-exempt income, and inconsistencies between declared taxable income, paid taxes, and the net wealth shown in statements of assets, said an NBR press release today.
If specific information or evidence of tax evasion is found during the investigation, the concerned team will submit a report to the Intelligence and Investigation Committee seeking approval to initiate revenue recovery actions.
Upon confirmation of clear evidence of revenue evasion, the respective committee of the tax commissionerate will grant approval to take necessary legal steps to recover the evaded revenue. Each tax commissionerate has also been instructed to submit to the NBR, by the 10th of next month, detailed information on additional tax demands and collections generated through their Intelligence and Investigation activities, in a prescribed format.
The NBR expects that by strengthening the operations of the Intelligence and Investigation Cells, it will be possible to recover evaded revenues, reduce tendencies of tax evasion, and foster a sound tax compliance culture across the country.
PT/ra
