- FBR issued an explanation on joint and several liability for unpaid taxes under Section 8A of the Sales Tax Act, 1990
- Registered persons receiving taxable supplies are liable for unpaid taxes if they know or suspect that taxes will remain unpaid
- Liability extends across the entire supply chain, involving multiple parties
- FBR can demonstrate the burden of proof for unpaid taxes
- FBR has the authority to exempt specific transactions from this liability
- The clarification aims to enhance transparency, accountability, and compliance in the supply chain
- Emphasis on shared responsibility among registered persons to ensure full tax payment
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
