The National Board of Revenue (NBR) on Sunday warned that filing so-called ‘zero tax returns’ is illegal under the Income Tax Act 2023 and may result in imprisonment for up to five years.
In a statement issued on Sunday, the NBR said it has noticed several misleading posts on social media promoting the idea that a taxpayer can submit a return by filling all income, expenditure, assets and liabilities fields with ‘zero’.
The NBR clarified that there is no provision for such a return under the Income Tax Act. Taxpayers are legally required to declare their actual income, expenditure, assets and liabilities in their returns.
Submitting false or misleading information, including declaring zero income, expenditure, assets or liabilities when that is not the case, constitutes a criminal offence under sections 312 and 313 of the law, the NBR said. Offenders may face up to five years in prison.
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The NBR stressed that taxpayers whose incomes are below the taxable threshold will not have to pay tax, but they must still submit accurate information in their returns. ‘Zero returns’ are not permitted, even if no tax is payable.
The board urged taxpayers to act as responsible citizens by submitting truthful returns and contributing to national development, while avoiding fraudulent practices promoted on social media that could lead to criminal penalties.