The Income Tax Ordinance 2001 (ITO) is the primary legislation governing taxation in Pakistan. The ITO sets out a number of different tax penalties for non-compliance with its provisions. These penalties can be civil or criminal in nature, and they can be imposed on individuals, companies, or other entities.
Civil Penalties
Civil penalties are financial penalties that are imposed by the Federal Board of Revenue (FBR) for non-compliance with the ITO. The amount of the penalty will vary depending on the nature of the non-compliance, but it can be up to 100% of the tax that is due.
Some examples of civil penalties that can be imposed under the ITO include:
- Late filing of tax returns
- Non-payment of tax
- Under-reporting of income
- False or misleading information on a tax return
Criminal Penalties
Criminal penalties are more serious penalties that can be imposed for non-compliance with the ITO. These penalties can include imprisonment, fines, or both.
Some examples of criminal penalties that can be imposed under the ITO include:
- Tax evasion
- Tax fraud
- Willful default
- Abetting or conspiring to commit tax evasion or fraud
Conclusion
The ITO sets out a number of different tax penalties for non-compliance with its provisions. These penalties can be civil or criminal in nature, and they can be imposed on individuals, companies, or other entities. It is important to be aware of these penalties so that you can avoid them and comply with the ITO.
