FCC upholds tax officials’ power to raid without prior notice

ISLAMABAD: The Federal Constitutional Court has ruled that tax authorities can conduct raids on business premises without prior notice, according to a detailed judgement released on Thursday.

FCC Judge Justice Aamer Farooq, in a written verdict concerning the scope of tax enforcement powers, held that parliament had granted wide authority to revenue officials to ensure implementation of tax laws.

The court rejected the argument that a raid would be unlawful if no formal case was pending against a taxpayer.

It said the judiciary could not insert conditions into the law that parliament had not expressly provided.

The ruling stated that tax officials may enter premises at any time without advance notice, provided the relevant commissioner records in writing the specific legal provisions allegedly violated before authorising the action.

According to the judgement, authorities are fully empowered to seize computers, documents and financial records during such operations as part of enforcement proceedings.

The decision augmented the legal backing for surprise inspections and strengthens the enforcement powers of tax authorities amid the government’s broader push to expand the tax base and curb evasion.