Heading: FBR TO INCENTIVIZE WHISTLEBLOWERS IN SALES TAX EVASION CASES - 2025-01-20
Karachi, January 20, 2025 – In a move to combat sales tax evasion and promote transparency, the Federal Board of Revenue (FBR) has announced policy to reward whistleblowers who provide credible information leading to the detection of tax fraud, evasion, or corruption. This initiative, outlined under Section 72D of the updated Sales Tax Act, 1990 for the tax year 2025, empowers the FBR to incentivize individuals who assist in uncovering fraudulent activities within the tax system. Key Provisions of Section 72D 1. Rewards for Whistleblowers: The FBR is authorized to sanction monetary rewards for whistleblowers whose credible information results in the identification of concealed sales tax, tax fraud, or misconduct. This step is expected to encourage individuals to come forward with actionable intelligence. 2. Procedure and Apportionment: The FBR will issue detailed guidelines in the official Gazette, specifying the procedures for claiming rewards and the criteria for apportioning the sanctioned amount. This will ensure a transparent and fair process for whistleblowers. 3. Rejection Criteria: Not every claim will qualify for a reward. Whistleblower claims may be rejected if: o The provided information lacks value. o The FBR already possesses the information. o The details are…