Recovery of tax out of property and through arrest of taxpayer Section 138
Previously, section 138 empowered the CIR to recover any tax due by a taxpayer, if the taxpayer fails to pay such tax within the time allowed by the CIR in the notice, through the following modes:
(a) attachment and sale of any movable or immovable property of the taxpayer;
(b) appointment of a receiver for the management of the movable or immovable property of the taxpayer; and
(c) arrest of the taxpayer and his detention in prison for a period not exceeding six months.
For facilitating FBR in recovery of outstanding taxpayers’ liabilities, the Finance Act has enhanced the authority of the Commissioner to recover tax due by incorporating the recovery provision of Sales Tax
Act, 1990 as provided in clauses (a), (ca) and (d) of Sub Section-I of section 48 of the Act.
Such powers include the followings:
a) deduct the amount from any money owing to the taxpayer and which may be at the disposal or in the control of such officer or any officer of Income Tax, Customs or Central Excise Department;
b) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts; and
c) seal the business premises till such time the amount of tax is paid or recovered in full.