The National Board of Revenue (NBR) has intensified nationwide monitoring and verification of withholding tax compliance, deploying special teams across its tax zones.
In a press release issued Sunday, the revenue authority urged taxpayers and businesses to remain aware of the extensive powers vested in tax officials under Section 147 of the Income Tax Act, 2023.
According to the statement, Section 147 authorises officials to enter and inspect, without obstruction, the premises, business centres or offices of any commercial or economic establishment, BSS reports.
They are empowered to examine and requisition books of account, vouchers, bank statements, receipts and other documents related to economic activities.
The law further allows inspection of information stored in computer systems, cloud servers, digital records or electronic devices. Where necessary, officials may bypass passwords or encryption to gain access.
To verify the accuracy of taxes deducted at source, officials may temporarily seize and retain account books, documents, electronic records or devices. They are also authorised to collect copies of documents, images or account records and affix identification marks or official seals.
The NBR noted that Section 147(2) provides for penalties against anyone who obstructs or refuses to cooperate with tax officials in carrying out revenue collection activities.
Taxpayers were reminded to deposit deducted taxes into the government treasury through the e‑Challan system, correctly mentioning the relevant legal provision and appropriate economic code.
The revenue board also advised taxpayers facing ambiguity, complexity, alleged harassment or grievances regarding implementation of Section 147 to contact the Member Secretary of the NBR Committee on Section 147 via email at [email protected].
