NBR directs field-level offices to act to curb tax evasion

The National Board of Revenue (NBR) has directed its field-level tax offices to strengthen intelligence and investigation activities in a bid to curb tax evasion and boost revenue collection.

The directive, issued by the office of the NBR member (tax audit, intelligence, and investigation), outlines detailed instructions on the formation and functioning of intelligence and investigation teams under each tax region, said a notification today (5 October).

It also specifies how these teams should prepare recommendations and seek committee approval before taking action to recover evaded taxes.

According to the NBR notice, the teams will conduct investigations based on intelligence reports, allegations of tax evasion, or information published in print and electronic media.

They will also look into irregularities such as overwriting or tampering in income tax files and registers, unusually high tax-free income, or disproportionate asset declarations compared to taxable income and paid tax.

If specific data and evidence of tax evasion are found during investigations, the respective teams will submit their findings to the Intelligence and Investigation Committee for approval to initiate recovery measures.

Once clear evidence is established, the committee of the concerned Tax Commissionerate will authorise legal action for revenue recovery.

Each tax commissionerate has been instructed to compile monthly reports detailing additional claims and collections arising from intelligence and investigation activities and submit them to the NBR by the 10th of the following month.

The NBR expressed optimism that by enhancing the activities of the intelligence and investigation cell, evaded revenue could be recovered, tax evasion tendencies would decline, and a sound tax culture would gradually take shape.