IR Commissioner might get powers to raid premises, confiscate undeclared assets

KARACHI: The Finance Bill 2019 has proposed enhanced powers for Income Tax Commissioner enabling them to enter and search the premises and confiscate undeclared assets. [the_ad id=”31605″]Section 175 of the Income Tax Ordinance, 1969 provides for enforcement of any provision of the Ordinance including audit and survey of taxpayer. This section empowers the Commissioner to impound and retain taxpayer’s manual or computerized record.

Finance Bill through proposed Section 175(6A) seeks to enhance the powers of Commissioner to raid a premises where there is reliable information of undeclared gold, bearer security or foreign currency and confiscate the same.

The conditions being pre-requisite for such raid will be prescribed later.

The proposed amendment is in line with the Government’s commitment to bring into tax net all the undeclared assets, discourage the hoarding of foreign currency and to encourage documentation of economy.

However, such discretionary power must be exercised carefully after seeking necessary approval from competent authorities to avoid undue harassment.

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