FBR Clarifies No Notice Needed for Sales Tax Recovery Under Section 11A, Effective 2025

• Tax officers are not required to issue a notice before recovering short-paid sales tax under Section 11A of the Sales Tax Act 1990
• The updated Sales Tax Act includes amendments from the Finance Act 2025
• Short-paid tax amounts in filed returns are subject to immediate recovery
• Recovery can occur by stopping goods removal or attaching business bank accounts without a show cause notice
• Penalties under Section 33 require a proper notice before imposition
• The aim is to expedite tax collection and prevent revenue leakages
• Legal experts emphasize the need for strict compliance to protect businesses
• FBR believes these changes will improve tax administration efficiency and resolve discrepancies quickly
• The article is based on official FBR updates and is not legal or financial advice

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.

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