The Federal Board of Revenue (FBR) has put a limit on the cash reward for whistleblowing at a maximum of Rs5million, which was previously 20 per cent of the recovered taxes against a tipoff.
The reward was fixed under the new Inland Revenue Reward Rules 2021, which are applicable from January 1.
According to the local media reports, by capping the reward money, the FBR wants to keep most of the recovered taxes into the kitty. Under the rules, a private person can also be registered with the FBR to provide information on tax evasion.
“The whistleblower is required to provide information in the shape of concrete evidence, which conclusively leads to detection of tax evasion, formulation of assessment/reassessment and eventual recovery of the evaded taxes,” the FBR said in a statement.
The FBR maintained the reward will be paid only if the tax sought to be evaded has been recovered at least to the extent of 50pc, adding that if detection and assessment had been made by the same officer, “he shall be entitled to a reward of the lesser of 20pc of the tax sought to be evaded or three years’ salary as at the time of detection/filing of the detection report.”
Under the rules, FBR may give rewards to officers in recognition of the meritorious services at the close of every financial year. “The amount of reward for meritorious services in no case will be less than three and more than six salaries in every single case,” the FBR said.