NBR to form intelligence teams to curb tax evasion

The National Board of Revenue (NBR) has instructed each tax region to form dedicated Intelligence and Investigation Teams (IITs) tasked with detecting and investigating suspected cases of tax evasion.

In a circular issued yesterday, the revenue board also directed its field offices to intensify intelligence operations to recover evaded taxes and curb widespread tax dodging.

The guidelines outline the teams' composition, operating procedures, and approval process for launching recovery drives.

According to the directive, the IITs will investigate cases triggered by intelligence tips, allegations of evasion, anomalies in tax documents, suspicious entries in registers, abnormal declarations of tax-exempt income, or asset statements showing disproportionate growth compared with declared income and taxes paid.

If evidence of evasion is found, the teams will submit their findings to the regional Intelligence and Investigation Committee, which will then decide on recovery measures, including legal action where necessary.

Each tax commissionerate has also been asked to submit monthly reports, using prescribed formats, detailing additional claims and collections from intelligence-led activities by the 10th of the following month.

The NBR said it expects the strengthened Intelligence and Investigation Cell to not only enhance revenue recovery but also deter tax evasion and promote a fairer tax culture.