Islamabad, JULY25: The Federal Board of Revenue (FBR) has created an investigation wing and implemented a new definition of “tax fraud” in an effort to combat tax evasion more successfully.
According to specifics, purposeful understatement or underpayment of tax duties as well as exaggerated claims for tax credits or refunds are included in the revised definition of “tax fraud.” This new structure aims to stop things like filing fake returns and hiding truthful facts. However, the FBR established the Inland Revenue Tax Fraud Investigation Wing. The detection, analysis, investigation, and prevention of tax fraud will be the main objectives of this specialized team. Fraud Intelligence and Analysis, Fraud Investigation, Legal, Accountants, Digital Forensic and Scene of Crime, and an Administrative Unit are some of the units that it will be separated into.
Retailers selling cigarette packets with fake stamps, banderoles, stickers, labels, barcodes, or incorrect tax stamps face severe fines under the amended Federal Excise Act of 2005. According to the new rules, these outlets might be sealed. Furthermore, the FBR now has the power to mandate the connection of electronic invoicing systems with its computerized system thanks to the amended Sales Tax Act. The goal of this project is to enhance tax compliance and transparency while facilitating real-time sales reporting.
