ISLAMABAD – Prime Minister Shehbaz Sharif has approved amendments to the arrest laws concerning individuals involved in tax fraud, according to FBR sources.
Under the new rules, arrests will now require prior approval from a special FBR board.
Executives of companies involved in tax fraud exceeding Rs50 million can face arrest. Additionally, individuals attempting to tamper with records or flee may also be detained.
Arrests can also be made if a person fails to appear despite receiving three notices. However, the arrest can only proceed if the accused does not present themselves before the relevant authority after the third notice.
These provisions will be reintroduced into the law by amending Section 37A in the new Finance Bill. FBR officials will no longer have the authority to directly arrest anyone accused of tax fraud.
The Prime Minister has also eased rules under Section 37AA. For cases involving fraud under Rs50 million, investigations will continue, but no immediate arrests will be made. However, authorities will retain the right to arrest if there’s a risk of the accused fleeing abroad.
