The Federal Board of Revenue (FBR) has issued new standard operating procedures (SOPs) to strengthen the handling of tax fraud cases by businesses and traders. These guidelines apply under Section 37A of the Sales Tax Act, 1990.
According to the instructions, any case showing evidence of tax fraud must be referred to the FBR Intelligence Directorate. The directorate will review each case within 30 days to decide whether a formal investigation is required under Section 37A.
The FBR said the SOP aims to establish a structured and legally sound process for inquiries and investigations. This framework ensures that proceedings remain enforceable before appellate forums and reduces the risk of procedural challenges.
Under the law, authorized FBR officers have powers similar to a civil court. They can summon individuals, examine evidence, and make arrests when necessary. This ensures that serious tax fraud cases are handled effectively.
If a preliminary inquiry leads to a formal investigation, officials must follow Sales Tax General Order No. 2 of 2025, the FBR clarified. These procedures guide the investigation from start to finish, maintaining compliance with legal standards.
The new SOP is expected to enhance the FBR’s ability to combat tax evasion and hold businesses accountable. By clearly defining the steps for reviewing, investigating, and prosecuting cases, authorities aim to make enforcement more transparent and efficient.
FBR officials have emphasized that all field formations must strictly adhere to the SOP. The structured approach also seeks to improve timelines, reduce errors, and ensure proper documentation in all investigations.
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With these measures, the FBR reaffirms its commitment to ensuring tax compliance, preventing fraud, and strengthening the overall tax administration system in Pakistan.
