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NBR intensifies its monitoring

Staff Reporter:

The National Board of Revenue (NBR) has intensified nationwide monitoring and verification of
withholding tax compliance through special teams of its tax zones.
In a press release issued yesterday, the NBR urged all concerned to remain aware of the powers vested in
tax officials under Section 147 of the Income Tax Act, 2023.
According to the release, Section 147 authorizes tax officials to enter and inspect, without obstruction, the
premises, business centers or offices of any commercial or economic establishment.
The officials are also empowered to examine and requisition books of account, vouchers, bank
statements, receipts and any documents related to economic activities.
The law further authorizes tax officials to inspect information stored in computer systems, cloud servers,
digital records or electronic devices and, where necessary, gain access by bypassing passwords or
encryption.
To verify the accuracy of taxes deducted at source, officials may temporarily seize and retain account
books, documents, electronic records or devices in their custody.
They are also authorized to collect copies of documents, images or account records and affix
identification marks or official seals where necessary.
The NBR said Section 147(2) of the Income Tax Act provides for penalties against any person who
creates obstacles or refuses to cooperate with tax officials in carrying out these revenue collection
activities.
The revenue board requested taxpayers to deposit taxes deducted at source into the government treasury
through the e-Challan system by correctly mentioning the relevant legal provision and the appropriate
economic code.
The NBR also advised taxpayers facing any ambiguity, complexity, alleged harassment or grievance
regarding the implementation of Section 147 to contact the Member Secretary of the NBR Committee on
Section 147 via email at assistance147nbr@gmail.com.

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