KARACHI: The Inland Revenue (IRS) staff have been authorized to attach bank accounts of taxpayers for recovery of outstanding duty and taxes, a notification said.
Federal Board of Revenue (FBR) has restored the powers of Commissioners IR to exercise their powers under Income Tax Ordinance, 2001 and Sales Tax Act, 1990 regarding recovery of tax dues through attachment of bank accounts.
FBR Chairman Syed Shabbar Zaidi in May, 2019 through an official notice barred the tax authorities for attachment of bank accounts prior information to taxpayers.
“No bank accounts attachment unless the taxpayer’s CEO/Principal Officer / owner is informed at least 24 hours prior to attachment and the Chairman FBR’s approval is obtained.”
However, the latest official note stated that in order to implement the law in its true spirit and to re-vest the power vested in the institution of the Commissioners viz-a-viz action under Section 140 of the Income Tax Ordinance, 2001, the instruction referred supra (the previous one) are hereby withdrawn ab-initio.