Unjust enrichment via bank account misuse leads to incarceration of property owner for tax evasion.
FOUND IN PAKISTAN: THE NEW TWIST IN TAX FRAUD - YOU'RE NOT OFF THE HOOK IF YOUR ACCOUNT IS USED FOR SNEAKY BUSINESS!
Got a friend running a shady tax scam using your business bank account? Well, say goodbye to your bank account and hello to a courtroom!
According to the latest amendments to the Finance Bill (2025-26), if you intentionally help a fraudster commit tax fraud or any offence leading to prosecution under the Sales Tax Act, you'll be considered an "abettor."
So, let's break it down - you're now an "abettor" if you:- Collude with a registered person in fraudulent tax activities- Prepare fake invoices for bogus claims of input tax adjustment- Allow your bank account to be used for tax fraud or other prosecutable offenses- Unauthorizedly maintain or operate a business bank account in another registered person's name
The updated Finance Bill also goes a step further. It states that if you misuse another registered person's user details for filing false documents or make unauthorized changes to their tax e-profile, you're an "abettor" too.
On top of that, if you're solely using a Sales Tax registration number for paper transactions with no actual taxable activity, you're looking at trouble as well!
These reforms are part of Pakistan's move to strengthen their tax enforcement mechanisms and discourage tax evasion. In simple terms, they're making it clear that assisting in tax fraud is no small matter and will lead to harsh punishment.
So, think twice before helping out a "friend" with a questionable business deal - you could end up standing trial instead!
- If you intentionally allow your bank account to be used for tax fraud or other prosecutable offenses in relation to business, you might find yourself standing trial as an 'abettor.'
- Under the updated Finance Bill, utilizing another registered person's user details for false document filing or unauthorized changes to their tax e-profile can also make you an 'abettor,' resulting in severe punishment.
