ISLAMABAD: The federal government has introduced powerful legal amendments in the Finance Bill 2025–26, targeting individuals and businesses that aid in tax evasion.
The revised bill redefines “accomplice” or “facilitator” under tax law, expanding the legal responsibility of those who support or enable fraudulent activities.
Under the new provisions, any person who uses a business bank account to assist in tax fraud will now be legally classified as an accomplice.
This includes anyone who knowingly participates in or helps others to evade taxes.
Authorities are now empowered to pursue strict legal action, including criminal prosecution and imprisonment.
Fake Invoicing and Indirect Involvement Now a Crime
The updated law also covers indirect involvement in tax fraud.
Individuals or entities found generating fake invoices — even without the taxpayer’s consent — will now face legal consequences.
This marks a significant shift in enforcement, aiming to close the loopholes that previously allowed facilitators to escape punishment.
Sales Tax Act Strengthened to Include Co-Conspirators
The Finance Bill clarifies that those who assist or conspire in tax crimes under the Sales Tax Act will be treated as equal offenders.
This expansion ensures that all enablers — whether directly or indirectly involved — are held accountable.
The government hopes this measure will deter organized tax evasion networks and improve tax compliance across the country.
