The Federal Board of Revenue (FBR) has introduced new standard operating procedures (SOPs) to address cases of tax fraud committed by businesses and traders under Section 37A of the Sales Tax Act, 1990.
According to instructions sent to field formations, cases with evidence of tax fraud must be referred to the intelligence directorate. The directorate will review these cases within 30 days to determine whether a formal investigation under Section 37A is necessary.
The FBR stated that the SOP aims to establish a structured process for inquiries and investigations, ensuring that proceedings remain legally sustainable before appellate forums. Under the law, authorized officers have powers similar to those of a civil court and can also make arrests when required.
If an investigation is initiated after a preliminary inquiry, officials will proceed in accordance with Sales Tax General Order No. 2 of 2025, the FBR added.
