Non-compliance with monitoring rules may lead to suspension and blacklisting under new amendments.
Islamabad – The Federal Board of Revenue (FBR) has issued a stern warning to sales taxpayers, announcing that those who refuse tax officers access to their business premises for stock, production, or clearance monitoring will face suspension or even blacklisting.
Under the revised Sales Tax Rules 2006, FBR now has the authority to suspend a taxpayer’s registration without prior notice if evidence suggests involvement in tax evasion, fake invoicing, or fraudulent practices. Suspensions will remain effective until inquiries are completed.
The amendments emphasize uniform enforcement across Large Taxpayer Offices (LTOs) and Regional Tax Offices (RTOs). Taxpayers may face suspension for denying access under sections 40B and 40C of the Sales Tax Act or for failing to provide mandatory records to Inland Revenue Officers.
Other triggers for suspension include business activity discrepancies exceeding five times declared capital, excessive transactions with already suspended taxpayers, non-filing of returns for three months, or submitting fraudulent returns.
While enforcement has been tightened, FBR clarified that taxpayers will still be given a chance for a public hearing before any final blacklisting or further punitive action.