20000129

CBR asks collectorates to issue final notices to evaders

SOHAIL SARFRAZ

ISLAMABAD: Central Board of Revenue has directed all Sales Tax Collectorates to issue forthwith final notices to the tax evaders of sales tax, it was learnt on Friday.

The CBR has advised its Collectorates to seal the business premises of tax dodgers until all the amount of tax is recovered while the other punishments include fine and penalties.

The CBR has also intimated that the Collectors will be held personally responsible, if any current liability is converted into arrears.

The board has asked Collectors of sales tax to serve notices to all tax evaders for the tax period November 1999 and complete the action by January 31, 2000. The same action against the short-filers for the subsequent tax periods should be initiated by the 10th of each month and be completed by the 25th of the same month under intimation to the board, the CBR directed.

The CBR has explained to the Collectors that the objective of the aforesaid instructions are meant to eliminate short-filing, to curb non-filing as well as late filing, to enforce the law, to broaden the tax-base, to expedite adjudication, to liquidate the existing stocks of arrears at the earliest possible and to avoid conversion of current liabilities into arrears. The ultimate aim is to maximise revenue collection and to achieve, rather surpass targets.

The Sales Tax Wing has advised that due courtesy should be observed during implementing the law and genuine tax-payers should not be harassed.

The CBR has further explained that if any refund claim relating to the short-filer is pending with any other Collectorate of Customs, Central Excise and tax or any Commissionerate of Income Tax, the respective Collector-Commissioner may be asked to adjust the amount of refund-rebate against the arrears of sales tax.

While taking actions against the short-filers, the Collectors have also been instructed that embargo should be physically enforced by posting an officer, at least an inspector alongwith three sepoys at the premises of the defaulters round the clock in three shifts.

In case the unit is located in the jurisdiction of another Collectorate, the concerned Collector may be requested to enforce the embargo.

The board has clarified to the high ups of sales tax that no installment facility should be granted to short-filers.

Working of the officials posted at the premises of each defaulter should be supervised by an officer not below the rank of a superintendent or Senior Auditor-Deputy Superintendent.

The board has asked the Collectorates of sales tax to take the following immediate action to generate maximum revenue.

The Collectors have been asked to take action under section 48 read with the Sales Tax Recovery Rules 1992 in all cases of outstanding arrears.

According to the existing rules: section 48 has given authority to the sales tax officers to stop removal of any goods from the business premises of tax-filers till the amount of tax is fully paid or recovered.

Sales Tax Collectorates should take timely action under section 11(1) against all non-filers which means that regarding assessment of tax, officer after serving a show cause notice can make an order for assessment of tax including imposition of penalty and additional tax.

The CBR has further directed the sales tax officers to take action under section 19 and 37C(1)(b) against non-registered persons liable to registration. According to the existing rules: This section is also related to the punishment and fine or both.

The Board has asked the Collectors to take action under section 37C(1)(c) against habitual non-filers. As per existing rules: This section relates to punishment, fine or both.

Action under section 11 (2) read with section 36 has also been advised in all cases of alleged evasion-failure to pay tax and to apprise all defaulters of the benefits of the amnesty scheme valid up to Jan 31, 2000 and try to convince them to avail this opportunity in order to avoid coercive action under section 48 or prosecution action under section 37C on expiry of the amnesty period.

Collectorates have been provided with the copy of the notice regarding recovery of sales tax.