The National Board of Revenue (NBR) has warned that taxpayers submitting so-called “zero returns” could face up to five years in prison, as such action constitutes a criminal offence under the current income tax law.
In a press release issued on Sunday, the NBR stated that failing to disclose actual income, expenditure, assets, or liabilities– and instead reporting any of these as zero, or all of them as zero– is illegal and punishable.
According to Sections 312 and 313 of the Income Tax Act, providing false or misleading information in tax returns may result in imprisonment for up to five years, it said.
The NBR also clarified that there is no legal provision for filing a “zero return” under the income tax law.
Taxpayers are required to accurately declare their actual income, expenses, assets, and liabilities in their annual returns, submitted between July 1 and November 30 each year, said the NBR.
