The Federal Board of Revenue has introduced new standard operating procedures (SOPs) to handle cases of tax fraud involving businesses and traders under Section 37A of the Sales Tax Act, 1990.
According to instructions issued to field formations, cases where evidence of tax fraud is identified must be referred to the intelligence directorate for further review. The directorate will examine the cases within 30 days to determine whether a formal investigation should be initiated under Section 37A.
The FBR stated that the new SOPs are designed to establish a structured and transparent process for tax fraud investigations, ensuring that legal proceedings remain strong and sustainable before appellate forums.
Under the law, authorized officers investigating tax fraud may exercise powers similar to those of a civil court and can also make arrests where necessary during the investigation process.
The tax authority added that if a case proceeds beyond the preliminary inquiry stage, officials will conduct the investigation in accordance with Sales Tax General Order No. 2 of 2025.
The move is part of the government’s broader efforts to strengthen tax enforcement and improve compliance across the business sector.
