FBR issues 11,000 notices, warns of strict action for tax non-compliance

In initial phase, tax offices in Karachi, Lahore, and Islamabad have sent out approximately 11,000 "nudging notices"
An undated image of FBR logo. — FBR/Canva
An undated image of FBR logo. — FBR/Canva 

The Federal Board of Revenue (FBR) has sent 11,000 tax notices to firms and individuals throughout Pakistan, essentially giving them the opportunity to fix discrepancies in their sales tax returns—or face severe consequences such as freezing their bank accounts, receiving large fines, and possibly losing their business altogether.

A report in The Express Tribune states that the notices were sent out last month as the government seeks to collect unpaid sales taxes and income taxes.

According to reports, FBR Chairman Rashid Langrial has authorised the use of a new risk management system that detects discrepancies in tax filings against the last five years. 

“Please correct anomalies in your sales tax return. Your failure to act will be viewed as a choice not to comply,” read one notice issued to companies in Lahore.

In the initial phase, tax offices in Karachi, Lahore, and Islamabad have sent out approximately 11,000 "nudging notices." The notices themselves hold no legal authority but serve as a clear warning for taxpayers to review and rectify their tax filings.

FBR representatives have cautioned that if taxpayers ignore these nudging notices, they could find that the consequences are far worse. Continued non-compliance may result in financial penalties, a full orders audit, physical monitoring, and best-judgement assessments by tax commissioners, which creates the possibility for greater tax liabilities.