National Board of Revenue (NBR) has warned that taxpayers who submit so-called ‘zero tax returns’ could face imprisonment for up to five years under the Income Tax Act 2023.
In a statement issued on Sunday, NBR said some social media posts were falsely promoting the idea that taxpayers can submit returns by entering ‘zero’ for all income, expenditure, assets and liabilities.
It stressed that such returns are not permitted and constitute a criminal offence if the information does not reflect a taxpayer’s actual financial status.
According to the law, submitting false or misleading information, including declaring zero income or assets when that is untrue, is punishable by up to five years in prison under sections 312 and 313.
NBR clarified that taxpayers earning below the taxable threshold will not owe any tax but must still provide accurate information in their returns.
It urged citizens to act responsibly and avoid fraudulent practices that could result in criminal prosecution.