NBR Intensifies Nationwide Monitoring of Withholding Tax Compliance

The National Board of Revenue (NBR) has deployed special teams across its tax zones to intensify the nationwide monitoring of withholding tax compliance.

In a recent press release, the NBR reminded businesses and the public of the authority granted to tax officials under Section 147 of the Income Tax Act, 2023. Under this law, tax officials can enter and inspect any commercial establishment or office without obstruction. They are fully authorized to examine and requisition physical financial records, including account books, vouchers, bank statements, and receipts.

Furthermore, officials can inspect digital records stored on computer systems, cloud servers, or electronic devices, and are legally permitted to bypass passwords and encryption if necessary. To verify that taxes are accurately deducted at source, inspectors can temporarily seize devices, copy documents, and affix official seals.

The NBR explicitly warned that anyone who obstructs or refuses to cooperate with tax officials will face legal penalties under Section 147(2) of the Act. Taxpayers are instructed to deposit any deducted taxes into the government treasury via the e-Challan system, ensuring they cite the correct legal provisions and economic codes.

Public Recourse for Grievances Prioritizing public accountability, the NBR stated that taxpayers facing harassment, undue complexity, or grievances during these inspections should immediately report the issue. Complaints can be directed to the Member Secretary of the NBR Committee on Section 147 via email at assistance147nbr@gmail.com.