FBR suggests tax recovery from the bank lockers of defaulters

The FBR has recommended that another section should be included in the Income Tax Rules of 2002 planned for controlling the recuperation of tax charges from the individuals who hold money on behalf of taxpayers.

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The Federal Board of Revenue (FBR) has suggested tax recovery from the bank lockers of defaulters.

The FBR has recommended that another section should be included in the Income Tax Rules of 2002 planned for controlling the recuperation of tax charges from the individuals who hold money on behalf of taxpayers.

The guidelines have been confined under the Income Tax Ordinance 2001, which is completely silent on the term “locker”.

Draft modifications to the Income Tax Rules 2002

The FBR has suggested draft modifications to the Income Tax Rules 2002, and has requested revisions within seven days. The draft rules will soon be displayed on the FBR website.

In case the FBR does not receive any disapproval or turns down any reservations stated by the investors, the rules will come into effect within two weeks of its placement on the website.

Moreover, tax authorities have proposed a definition with a wide scope where the FBR can recuperate tax charges from an employer owing, who may owe compensation to its worker; an occupant owing, who may owe payment to its landowner; or an account holder owing, or who may owe money to the taxpayer.

According to the suggested rule 210A (b), the money or an asset placed in bank lockers has also been recommended to be brought under the scope of the FBR and it may now get access to the lockers.

“Holding or who may hold” includes:

  • Bank accounts,
  • TDRs (Term Deposit Receipts),
  • CDRs (Call Deposit Receipts),
  • Fixed deposits or money held in lockers,

However, the Income Tax Ordinance 2001 does not allow the FBR to recuperate money from the bank lockers of people.

The FBR representative Dr. Hamid Atiq Sarwar said that the recapture rules were being outlined on the orders of the Lahore High Court. Once cleared by the court, the suggested rules would be displayed on the FBR website to seek comments from the investors.


Also See:

FBR Tracks 10,000 People Involved In Money Laundering, Terror Financing

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