To me, this appears to be a witch-hunt based on half-baked data and is an ill-advised strategy.
ISLAMABAD: I am bitterly disappointed to read your report of March 22 titled “Government starts issuing notices to tax evaders” which says that the FBR has started the process to deliver notices under the Income Tax Ordinance of 2001 to regional tax offices. It further says that by sending such notices, with a one-month deadline, tax dodgers will be required to submit returns and wealth statements, and pay the due amount of tax or face seizure of their property and bank accounts.
To me, this appears to be a witch-hunt based on half-baked data and is an ill-advised strategy. Firstly, the FBR headquarters are not empowered by law to decide about statutory notices in such cases of tax evasion. Income tax law empowers each commissioner of inland revenue to require the furnishing of a return of income or a wealth statement. That action is to be based on the commissioner’s independent judgement. Furthermore, the law does not allow the freezing of properties and bank accounts in the manner suggested by the FBR.
A better approach would be to go after a few hundred notorious tax evaders in the first phase. This way, the actions of the government will stand the test of appeal and will be likely to achieve the desired objective.
Jameel Bhutto
Ex-member (tax policy) CBR
Published in The Express Tribune, March 26th, 2011.
