Section 182: Offences and penalties

1[182. Offences and penalties.— (1) Any person who commits any offence specified in column (2) of the Table below shall, in addition to and not in derogation of any punishment to which he may be liable under this Ordinance or any other law, be liable to the penalty mentioned against that offence in column (3) thereof:— TABLE S. Offences Penalties Section of No. the Ordinance to which offence has reference (1) (2) (3) (4) 1. 1[Where any person 2[ ] 114 *[and 118] fails to furnish a return of income as required 3[Such person shall pay a penalty equal to higher under section 114 of – within the due date.] (a) 0.1% of the tax payable in respect of that tax year for each day of default; or (b) rupees one thousand for each day of default: Provided that minimum penalty shall be — (i) rupees ten thousand in case of individual having seventy-five percent or more income from salary; or (ii) rupees fifty thousand in all other cases: Provided further that maximum penalty shall not exceed two hundred percent of tax payable by the person in a tax year: Provided also that the amount of penalty shall be reduced by 75%, 50% and 25% if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law; Explanation.— For the purposes of this entry, it is declared that the expression "tax payable" means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122D;] 4[1A. Where any person 7 8[50000] 10[ ] 11[165, [Such person shall pay a penalty of Rs. if the fails to furnish a 165A, 165B and person had already paid the tax collected or withheld statement as required 165C] by him within the due date for payment and the under section 5[ ] statement is filed within ninety days from the due date 6[165, 165A, 165B or for filing the statement and, in all other cases, a penalty 165C] within the due of Rs.2500 for each day of default from the due date date.] subject to a minimum penalty of Rs. 10,000] 9[: Provided that where it stands established that no tax was required to be deducted or collected during the relevant period, minimum amount of penalty shall be ten thousand Rupees.”; 1[1AA. Where any person Such person shall pay a penalty of 2[“0.1% of the 114, 4[ ] and fails to furnish wealth taxable income per week or Rs.3[100,000] 116] statement or wealth whichever is higher.”] reconciliation statement. 5[IAAA Where any person Such persons shall pay a penalty of 2 percent of 116A] fails to furnish a the foreign income or value of the foreign assets foreign assets and for each year of default. income statement within the due date. 6[1B Where any person Such person shall pay a penalty equal to higher of 117(3)] fails to furnish a return – of income as required (a) 0.1% of the tax payable in under sub-section (3) respect of that tax year for of section 117 within each day of default; or the time specified in ( b) Rs. 1,000 per day of default: the notice Provided that minimum penalty shall be Rs.10,000 in case of an individual and Rs.50,000 in all other cases. 2. Any person who fails Such person shall pay a penalty of five thousand 174 and to issue cash memo rupees or three per cent of the amount of the tax Chapter VII of or invoice or receipt involved, whichever is higher. the Income Tax when required under Rules. this Ordinance or the rules made thereunder. 3. Any person who is Such person shall pay a penalty of 7[ten] thousand 181 required to apply for rupees. registration under this Ordinance but fails to make an application for registration. 8[3A. Where any person The shop of such person shall be sealed for seven 99B] being a trader or a days for first default and for twenty one days for shopkeeper who is each subsequent default required to apply for registration under this Ordinance but fails to register or fails to pay advance tax as specified in a scheme of special procedure prescribed under section 99B. 4. Any person who fails Such person shall pay a penalty of five thousand 181 to notify the changes rupees. of material nature in the particulars of registration. 9[ ] 10[ ] 4B Any person who Such a person shall pay a penalty at the rate of Rs. 181AA] contravenes the 11[100,000] for each connection provided to an provisions of section unregistered person. 181AA. 5. Any person who fails Such person shall pay a penalty of five per cent of 137 to deposit the amount the amount of the tax in default. of tax due or any part For the second default an additional penalty of 25% thereof in the time or of the amount of tax in default. manner laid down For the third and subsequent defaults an additional under this Ordinance penalty of 50% of the amount of tax in default. or rules made thereunder. 1[Provided that if the person opts to pay the tax due on the basis of an order under section 129 on or before the due date given in the notice under sub-section (2) of section 137 issued in consequence of the said order, and does not file an appeal under section 131 the penalty payable shall be reduced by 50%.] 6. Any person who Such person shall pay a penalty of 4[thirty] thousand 137 repeats erroneous rupees or three per cent of the amount of the tax calculation in the involved, whichever is higher] 5[: return for more than one year whereby Provided that no penalty shall be imposed to amount of tax 2[paid the extent of the tax shortfall occurring as a result of is] less than the actual the taxpayer taking a reasonably arguable position tax payable under this on the application of this Ordinance to the Ordinance 3[ ]. taxpayer’s position.] 7. Any person who fails Such person shall pay a penalty of ten thousand 174 6[,108] to maintain records rupees or five per cent of the amount of tax on required under this income whichever is higher. Ordinance or the rules made thereunder. 8. Where a taxpayer who, 177 without any reasonable cause, in non- compliance with provisions of section 177— (a) fails to Such person shall pay a penalty of 7[twenty-five] produce the record thousand rupees; of documents on receipt of first notice. (b) fails to such person shall pay a penalty of 8[fifty] thousand produce the record rupees; and or documents on receipt of second notice; and (c) Fails to such person shall pay a penalty of 1[one hundred] produce the record thousand rupees. or documents on receipt of third notice. 9. Any person who fails Such person shall pay a penalty of 3[twenty-five] 176 to furnish the thousand rupees for the first default and 4[fifty] information required thousand rupees for each subsequent default. or to comply with any other term of the notice served under section 1762[or 108]. 10. Any person who— (a) makes a false or Such person shall pay a penalty of twenty five 114, 6[ ], 116, misleading thousand rupees or 5[50%] of the amount of 174, 176, 177 7[ statement to an tax shortfall whichever is higher: [118] Inland Revenue Authority either in Provided that in case of an assessment order writing or orally or deemed under section 120, no penalty shall be electronically imposed to the extent of the tax shortfall occurring including a as a result of the taxpayer taking a reasonably statement in an arguable position on the application of this application, Ordinance to the taxpayers’ position. certificate, declaration, notification, return, objection or other document including books of accounts made, prepared, given, filed or furnished under this Ordinance; (b)furnishes or files a false or mis- leading information or document or statement to an Income Tax Authority either in writing or orally or electronically; (c) omits from a statement made or information furnished to an Income Tax Authority any matter or thing without which the statement or the information is false or misleading in a material particular. 1[10A Any person who fails Such person shall pay penalty of fifty million rupees 114B] to comply with income for first default and one hundred million for each tax general order subsequent default: issued by the Board within fifteen days of issue of such order. Provided that said penalty shall be imposed effective from such date as the Board may notify. 11. Any person who denies Such person shall pay a penalty of 2[fifty] thousand 175 and 177 or obstructs the access rupees or 3[fifty] per cent of the amount of tax of the Commissioner or involved, whichever, is higher. any officer authorized by the Commissioner to the premises, place, accounts, documents, computers or stocks. 12. Where a person has Such person shall pay a penalty of 4[one hundred] 20, 111 and concealed income or thousand rupees or an amount equal to the tax General furnished inaccurate which the person sought to evade whichever is particulars of such higher. However, no penalty shall be payable on income, including but mere disallowance of a claim of exemption from tax not limited to the suppression of any of any income or amount declared by a person or income or amount mere disallowance of any expenditure declared by chargeable to tax, the a person to be deductible, unless it is proved that claiming of any the person made the claim knowing it to be wrong. deduction for any expenditure not actually incurred or any act referred to in sub- section (1) of section 111, in the course of any proceeding under this Ordinance before any Income Tax authority or the appellate tribunal. 5[12A Where any person Such person shall pay a penalty equal to fifty 37(6)] fails to pay tax at the percent of the amount of tax involved time of making payment as consideration of shares or at the time of registration of shares by the Securities and Exchange Commission of Pakistan or the State Bank of Pakistan, whichever is earlier. 1[12B Where a banking Such person shall pay a penalty equal to hundred 153(2A)] company or payment percent of the amount of tax involved. gateway or a courier service provider, as the case may be, fails to deduct tax at the time of making payment to a seller, or fails to pay the tax deducted as required under section 160, with respect to digitally ordered goods or rendering or providing of digitally delivered services using e-commerce platform. 13. Any person who Such person shall pay a penalty of twenty five 209, 210 and obstructs any Income thousand rupees. General. Tax Authority in the performance of his official duties. 14. Any person who Such person shall pay a penalty of five thousand General. contravenes any of the rupees or three per cent of the amount of tax provision of this involved, which-ever is higher. Ordinance for which no penalty has, specifically, been provided in this section. 15. Any person who fails to Such person shall pay a penalty of 2[forty] thousand 1[Division II or collect or deduct tax as rupees or the 10% of the amount of tax which-ever Division III 2[, required under any is higher. excluding sub- provision of this section (2A) of Ordinance or fails to pay section 153,] of the tax collected or Part V of deducted as required Chapter X or under section 160. Chapter XII] 3[15A Any seller supplying Such seller shall pay a penalty of five hundred 181] digitally ordered goods thousand rupees for the first default and one million and digitally delivered rupees for every subsequent default. services through online marketplace who is required to registered under Income Tax Ordinance, 2001 (XLIX of 2001) fails to register. 4[16. Any person who fails to Such person shall pay a penalty of five thousand 181C 6[and display his NTN 5[or rupees. 181D] ] business licence] at the place of business as required under this Ordinance or the rules made thereunder. 7[17. Any reporting financial Such reporting financial institution or reporting entity 107, 108 and institution or reporting shall pay a penalty of two thousand rupees for each 165B entity who fails to furnish day of default subject to a minimum penalty of information or country- twenty five thousand rupees. by-country report to the Board as required under section 107, 108 or 165B within the due date. 18. Any person who fails to 1% of the value of transactions, the record of which 108.] keep and maintain is required to be maintained under section 108 and document and Income Tax Rules, 2002. information required under section 108 or Income Tax Rules, 2002. 8[ 9[ ] ] 1[21 Any person who Such person shall pay a penalty of five percent of 75A purchases immovable the value of property determined by the Board property having fair under sub-section (4) of section 68 or by the market value greater provincial authority for the purpose of stamp duty, than rupees five whichever is higher. million through cash or bearer cheque. 22 Where an offshore tax Such person shall pay a penalty of one hundred General evader is involved in thousand rupees or an amount equal to two offshore tax evasion hundred per cent of the tax which the person sought in the course of any to evade, whichever is higher. proceedings under this Ordinance before any Income Tax authority or the appellate tribunal. 23 Where in the course Such person shall pay a penalty of three hundred General of any translation or thousand rupees or an amount equal to two declaration made by a hundred per cent of the tax which was sought to be person an enabler evaded, whichever is higher. has enable, guided, advised or managed any person to design, arrange or manage that transaction or declaration in such a manner which has resulted or may result in offshore tax evasion in the course of any proceedings under this Ordinance. 24 Any person who is Such person shall pay a penalty of one hundred General involved in asset thousand rupees or an amount equal to one move as defined in hundred per cent of the tax whichever is higher. clause (5C) of section 2 of the Ordinance from specified territory to an un- specified territory. 25 Where a Reporting Such Reporting Financial Institution shall pay a Financial Institution penalty of Rs.10,000 for each default and an fails to comply with additional Rs. 10,000 each month until the default is any provisions of redressed. section 165B of the Ordinance or Common Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002. 26 Where a Reporting Such Reporting Financial Institution shall pay a Financial Institution penalty of Rs.10,000 for each default and an files an incomplete or additional Rs. 10,000 each month until the default is inaccurate report redressed. under provisions of section 165B of the Ordinance and Common Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002. 27 Where a Reporting Such Reporting Financial Institution shall pay a Financial Institution penalty of Rs.10,000 for each default and an fails to obtain valid additional Rs. 10,000 each month until the default is self-certification for redressed. new accounts or furnishes false self- certification for new accounts or furnishes false self-certification made by the Reportable Jurisdiction Person under Common Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002. 28 Where a Reportable Such Reporting Financial Institution shall pay a Jurisdiction Person penalty of Rs.5,000 for each default and an fails to furnish valid additional Rs. 5,000 each month until the default is self-certification or redressed.] furnishes false self- certification under Common Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002. 1[29 Where any person Such person shall pay a penalty of Rs. 10,000 for 181] fails to declare each day of default since the date of submission of business bank application for registration or date of opening of account(s), in his undeclared business bank account whichever is registration later: application or fails to amend his registration Provided that if penalty worked out as aforesaid profile to declare is less than Rs.100,000 for each undeclared bank existing business account, such person shall pay a penalty of bank account(s) Rs.100,000 for each undeclared business bank willfully. account: Provided further that this provision shall be applicable from the first day of October, 2021 during which period the taxpayer may update their registration forms. 2[30 Any company or Such company or Association of Persons shall pay 181E Association of a penalty of Rs. 1,000,000/- for each default. Persons who contravenes the provisions of Section 181E. 31 Any person who fails Such person shall pay a penalty of: 164A to integrate or perform roles and functions as (i) Rs.50,000 for first default of 07 days specified, after being (ii) Rs. 100,000 for second default of next 07 days duly notified by the (iii) Rs. 50,000 for each week after the second Board as SWAPS consecutive week of default: Agent. Provided that no penalty shall be imposed for the period for which extension from integration is granted by the Commissioner subject to the condition that, if the SWAPS Agent fails to integrate within such extended time, penalties shall be imposed as if no extension was granted. 32 Any person, who is Such person shall pay a penalty of five hundred 237A integrated for thousand rupees or two hundred per cent of the monitoring, tracking, amount of tax involved, whichever is higher. reporting or recording of sales, services and similar business transactions with the Board or its computerized system, conducts such transactions in a manner so as to avoid monitoring, tracking, reporting or recording of such transactions, or issues an invoice which does not carry the prescribed invoice number or QR code or bears duplicate invoice number or counterfeit QR code, or defaces the prescribed invoice number or QR code, or any person who abets commissioning of such offence. 33 Any person, who is Such person shall be liable to pay a penalty up to 237A required to integrate one million rupees, and if continues to commit the his business for same offence after a period of two months after monitoring, tracking, imposition of penalty as aforesaid, his business reporting or recording premises shall be sealed till such time he integrates of sales, services and his business in the manner as stipulated under sub- similar business section (3) of section 237A, as the case may be. transactions with the Board or its computerized system, fails to get himself registered under the Ordinance, and if registered, fails to integrate in the manner as required under law. 34 A person required to Such person shall be liable to pay- 237A integrate his business i) penalty of five hundred thousand rupees for first as stipulated under default; sub-section (3) of ii) penalty of one million rupees for second default section 237A, who after fifteen days of order for first default; fails to get himself iii) penalty of two million rupees for third default after registered under the fifteen days of order for second default; Ordinance, and if iv)penalty of three million rupees for fourth default registered, fails to after fifteen days of order for third default: integrate in the Provided that if such person fails to manner as required integrate his business within fifteen days of under the law and imposition of penalty for fourth default, his business rules made premises shall be sealed till such time he integrates thereunder. his business in the manner as stipulated under sub- section (3) of section 237A: Provided further that if the person integrates his business with the Board's computerized system before imposition of penalty for second default, penalty for first default shall be waived by the Commissioner.] 1[35 Any company and an Such company, including a banking company and 114(2)] association of an association of persons shall pay a penalty of persons who – Rs.500,000 or 10% of the tax chargeable on the taxable income, whichever is higher.” (a) fails to fully state all the relevant particulars or information as specified in the form of return, including a declaration of the records kept by the taxpayer; (b) furnishes any annexure, statement or document specified in the return of income as blank or with incomplete or irrelevant particulars; or (c) attaches blank or incomplete annexures, statements or documents where such annexures, statements or records were required to be filed. (2) The penalties specified under sub-section (1) shall be applied in a consistent manner and no penalty shall be payable unless an order in writing is passed by the Commissioner, Commissioner (Appeals) or the Appellate Tribunal after providing an opportunity of being heard to the person concerned 2[:] 1[Provided that where the taxpayer admits his default he may voluntarily pay the amount of penalty due under this section.] 2[Explanation.—For the removal of doubt, it is clarified that establishing mens rea is not necessary for levying of penalty under this section.] (3) Where a Commissioner (Appeals) or the Appellate Tribunal makes an order under sub-section (2), the Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall immediately serve a copy of the order on the Commissioner and thereupon all the provision of this Ordinance relating to the recovery of penalty shall apply as if the order was made by the Commissioner. (4) Where in consequence of any order under this Ordinance, the amount of tax in respect of which any penalty payable under sub-section (1) is reduced, the amount of penalty shall be reduced accordingly.]

Effective date: 2001-09-13

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