Amended Finance Bill: Individuals facilitating tax fraud through bank accounts to face prosecution

The amended Finance Bill (2025-26) introduces a key revision by categorising individuals who assist in committing tax fraud through business bank accounts as “abettors,” subjecting them to prosecution, including possible imprisonment.

The new definition of "abettor" in the finance bill targets individuals who knowingly aid or facilitate tax fraud, which includes actions such as preparing fraudulent invoices for false input tax claims or allowing their bank accounts to be used for tax evasion. 

Under this amendment, those who operate or maintain business bank accounts to assist tax fraud or other related crimes will also be prosecuted.

The amendment makes it clear that anyone who intentionally abets or assists in the commission of tax-related offences, including maintaining unauthorised or illegal business bank accounts for others, will face legal consequences under the Sales Tax Act.

This change aims to strengthen enforcement against tax fraud and deter individuals from facilitating such activities, enhancing accountability in business operations.