Offences and Penalties Chapter- 09
Exemption from penalty and default surcharge (U/s 34A)
The Federal Government (by notification) or the board (by order), published in Gazette in writing, may
exempt any person or class of person from payment of whole or part of penalty or default surcharge
on conditions and limitation as specified therein.
Power to summon persons to give evidence and produce documents in inquiries under this Act (u/s
37)
- Any Officer of Inland Revenue shall have powers to summon any person whose attendance or any
other thing he considers necessary to produce evidence or document in any inquiry. - Any person summoned, shall be bound to attend either in person or by an authorized agent as
directed by Officer of Inland Revenue. - Provide that person who is exempt from personal appearance in a court u/s 132 and 133 of the Code
of Civil Procedure, shall not be required to appear in person. - Any inquiry before an Officer Inland Revenue shall be deemed to be a judicial proceeding within the
meaning of sec. 193 and 228 of the Pakistan Penal Code Act, 1860.
Power to arrest and prosecute (U/s 37A)
- An Officer Inland Revenue (at least an Assistant Commissioner) or any other officer of equal
rank authorized by the Board, who believes that any person has committed a tax fraud or any
offence warranting prosecution on the basis of material evidence, may cause arrest of such person. - All arrests made under this Act shall be carried out in accordance of Code of Criminal Procedure,
1898 - Where any person has committed a tax fraud or any offence (warranting prosecution), the CIR
may, either before or after the institution of any proceedings for recovery of tax, compound the
offence if such person pays the tax due along with default surcharge and penalty as determined. - In the case of company, suspected of tax fraud, every director or officer of that company whom
the authorized officer believes is personally responsible for actions of company contributing the tax
fraud shall be liable to arrest. Further any arrest shall not absolve the company from the liabilities
of payment of tax, default surcharge and penalty.
Procedure to be followed on arrest of a person (U/s 37B)
- The Officer of Inland Revenue shall intimate the fact of arrest of person to Special Judge who may
direct him to produce the arrested person at such time and place and on such date as considers
expedient and such officer shall act accordingly. - The person arrested shall be, within 24 hours of such arrest excluding the time necessary for the
journey, produced before the Special Judge, if there is no Special Judge within a reasonable distance
then to the nearest Judicial Magistrate. - Any person arrested may (on the request), after pursuing the record or after giving the prosecution an
opportunity of being heard, admit or refuse to admit him to bail on his executing bond, with or without
sureties and direct is detention at such place as he deems fit. - Magistrate may, after authorizing the detention of person produced before him, direct to fix the date
and time of his production in such custody at such place and for such period as he considers
necessary or proper for his earliest production before the Special Judge, or direct him to be forthwith
taken to, and produced before Special Judge, and he shall be so taken. - Special Judge or Judicial Magistrate may preclude from remanding any such person in the custody of
the Sales Tax Officer who makes a request in writing to that effect and the Special Judge or Judicial
Magistrate, after pursuing record and hearing such person, deems necessary to make such order for
the completion of inquiry or investigation and such custody shall not exceed 14 days in any case. - The Officer of Inland Revenue shall record the fact of arrest and other relevant particulars in the
register and shall immediately proceed and if he completes inquiry within 24 hours of his arrest,
excluding the time required for journey, he may make a request for his further detention in his
custody.