ISLAMABAD: The Federal Constitutional Court has declared that tax authorities have full authority to conduct raids and searches at any time and place without prior notice.
In a crucial ruling regarding the powers of tax authorities, Justice Amir Farooq ruled that tax officials do not need any advance notice to conduct a raid or search.
The court dismissed the argument that a case must be filed against an individual or institution before a raid can be carried out.
Following this decision, it has become easier for authorities to take action against tax evaders.
In a written ruling, the court explained that even if no case is registered against a taxpayer, tax officials can still conduct an investigation or enforcement action at their discretion.
The ruling also made it clear that tax authorities have the right to seize computers, important documents, and business account records during a raid.
The judgment pointed out that parliament had granted tax officials broad powers to enforce tax laws and prevent tax evasion in the country.
The court maintained that the judiciary cannot impose additional conditions or restrictions that are not part of the laws enacted by parliament.
However, the court added that a key condition is that the use of power must not be abused.
The court clarified that the tax commissioner must provide written clarification on which specific law violation the raid is being carried out under.
In his ruling, Justice Amir Farooq affirmed that tax authorities are fully authorised to conduct raids, without needing prior notice or an ongoing case against the taxpayer.
The argument that a raid cannot take place without a case was rejected.
The court emphasised that parliament has granted extensive powers to tax officials to ensure the enforcement of tax laws, and that courts are not authorised to alter the explicit and unambiguous language of legislation passed by the legislature.
The Federal Constitutional Court upheld the Sindh High Court’s decision, rejecting the appeal.
