09-09-2025, 04:54 PM
FBR, through amendments in the Sales Tax Rules, 2006, has reinforced its authority to suspend or blacklist sales tax-registered persons under section 21(2) of the Sales Tax Act, 1990.
Where the Commissioner or the Board has reason to believe that a registered person has issued fake invoices, evaded tax, or engaged in fraud, the registration may be suspended through the system (without prior notice) pending inquiry. To maintain uniformity, LTOs and RTOs are instructed to follow a structured procedure in such cases.
Grounds for suspension include:
1. Non-existence of the taxpayer at the registered address.
2. Denial of access to premises under sections 40B and 40C, or refusal to produce records under sections 25 and 37 of the Act.
3. Business activity exceeding five times the declared capital and liabilities.
4. Transactions exceeding 10% with suspended persons during a month or where the value is above Rs. 50 million, whichever is higher.
5. Non-filing of returns for three consecutive months, null-filing for six consecutive months, or conduct amounting to tax
Fraud
Registered persons are advised to review compliance procedures to mitigate the risk of suspension or blacklisting under these updated rules.
Where the Commissioner or the Board has reason to believe that a registered person has issued fake invoices, evaded tax, or engaged in fraud, the registration may be suspended through the system (without prior notice) pending inquiry. To maintain uniformity, LTOs and RTOs are instructed to follow a structured procedure in such cases.
Grounds for suspension include:
1. Non-existence of the taxpayer at the registered address.
2. Denial of access to premises under sections 40B and 40C, or refusal to produce records under sections 25 and 37 of the Act.
3. Business activity exceeding five times the declared capital and liabilities.
4. Transactions exceeding 10% with suspended persons during a month or where the value is above Rs. 50 million, whichever is higher.
5. Non-filing of returns for three consecutive months, null-filing for six consecutive months, or conduct amounting to tax
Fraud
Registered persons are advised to review compliance procedures to mitigate the risk of suspension or blacklisting under these updated rules.