FBR to Freeze Taxpayers’ Bank Accounts Without Notice

The Federal Board of Revenue (FBR) has allowed the field formations to freeze the bank accounts of taxpayers without any prior approval of the Chairman FBR and without 24 hours prior intimation to the CEOs/principal officers/owners of companies. The tax department on Monday directed the field formations with regard to the withdrawal of directives pertaining to informing the taxpayer before attaching the bank accounts under Section 140 of the Income Tax Ordinance, 2001 and Section 48 of the Sales Tax Act, 1990. The FBR had issued the directions pertaining to informing the taxpayer CEOs/principal officers/owners at least 24 hours prior to the attachment of bank accounts. In order to implement the law in letter and spirit and revest the power vested in the institution of the commissioner’s viz-a-viz action under Section 140 of the Income Tax Ordinance, 2001, the instructions with regard to the attachment of bank accounts and the Chairman FBR approval are withdrawn. The field formations will accordingly exercise the powers vested under SRO 274(1)/2020 dated April 2, 2020, and Section 48 of the Sales Tax Act, 1990 for recovery of outstanding demand.