Income Tax Ordinance, 2001 — Section 230K: Tax Fraud Investigation Wing Inland Revenue

1[230K. Tax Fraud Investigation Wing Inland Revenue. – (1) There shall be established a wing to be known as Tax Fraud Investigation Wing Inland Revenue.

(2)The functions of the Tax Fraud Investigation Wing Inland Revenue shall be to detect, analyze, investigate, combat and prevent tax evasion and fraud.

(3)The Tax Fraud Investigation Wing Inland Revenue shall comprise Fraud Intelligence and Analysis Unit, Fraud Investigation Unit, Legal Unit, Accountants Unit, Digital Forensic and Scene of Crime Unit, Administrative Unit or any other Unit as may be approved by the Board or the Federal Government.

(4)The Tax Fraud Investigation Wing Inland Revenue shall consist of a Chief Investigator and as many following officers, as may be notified by the Board –

(a)Senior Investigators, Investigators, Junior Investigators or any other officer of Inland Revenue with any other designation;

(b)a Senior Forensic Analyst and as many Forensic Analysts and Junior Forensic Analysts; and

(c)a Senior Data Analyst and as many Data Analysts and Junior Data Analysts.

(5)The Board may, by notification in the official Gazette,

(a)specify the functions and jurisdiction of the Tax Fraud Investigation Wing Inland Revenue and its officers; and

(b)confer the powers of authorities specified in section 207 upon the Tax Fraud Investigation Wing Inland Revenue and its officers in clause (a) of sub-section 4.

(6)Nothing contained in this section shall prevent the authorities appointed under sections 207 and 208 or any other authority or officer conferred with the power of authorities under sections 207 and 208 from conducting prosecution Part XI of Chapter X of the Ordinance.] 1 Section 230K inserted by the Finance Act 2024. 454 Chapter XI – Administration 1[ ] 1 Section 231 omitted by the Finance Act, 2005. The omitted section 231 read as follows: “231. Functions and Powers of Directorate.- (1) The functions of the Directorate-General of Inspection shall be, namely:

(a)To carry out inspections of income tax cases and offices;

(b)to investigate or cause investigation to be carried out in respect of –

(i)cases involving leakage of revenue or evasion of taxes; and

(ii)Regional Commissioners of Income Tax, Commissioners of Income Tax, taxation officers and any other staff of income tax offices allegedly involved in corruption and malpractice, and recommend to the competent authority appropriate disciplinary action;

(c)to carry out audit of cases or offices involving income tax revenues;

(d)to recommend to the Central Board of Revenue in matters of tax policy, tax administration and tax operations;

(e)to furnish an annual report about the workings of Income Tax Offices to the Central Board of Revenue by the thirty-first day of December, following the end of the financial year to which it relates; and

(f)to carry out any other work or function that may be assigned to it by the Federal Government.

(2)In discharge of its functions under sub-section (1), the Directorate-General shall have the powers specified in section 176.” 455 Chapter XII – Transitional Advance Tax Provisions CHAPTER XII TRANSITIONAL ADVANCE TAX PROVISIONS 1 [ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[231AB. Advance tax on cash withdrawal. — (1) Every banking company shall deduct advance adjustable tax at the rate of 8[0.8%] of the cash withdrawal from a 1 Inserted by the Finance Act, 2005. 2 Section 231A omitted by the Finance Act, 2021. The omitted section read as follows: “231A. Cash withdrawal from a bank.—2[(1) Every banking company shall deduct tax at the rate specified in Division VI of Part IV of the First Schedule, if the payment for cash withdrawal, or the sum total of the payments for cash withdrawal in a day, exceeds 2[fifty] thousand rupees.] 2 [“Explanation.- For removal of doubt, it is clarified that the said fifty thousand rupees shall be aggregate withdrawals from all the bank accounts in a single day.” Chapter XII – Transitional Advance Tax Provisions person whose name is not appearing in the active taxpayers’ list on the sum total of the payments for cash withdrawal in a day, exceeding fifty thousand rupees. Explanation. – For removal of doubt, it is clarified that the said fifty thousand rupees shall be aggregate cash withdrawals in a single day.]