Suspension of Registration of Sales Tax in FBR or Iris, the Commissioner may suspend registration of a Taxpayer, if the person is found to have issued fake invoices, evaded tax or committed tax fraud without prior notice, pending further inquiry.
Suspension of Registration Can Occur due to the Following Possibilities:
1. Non-availability of the Registered Person at the given address;
2.Refusal to allow access to business premises or refusal to furnish records to an authorized Inland Revenue Officer;
3. Abnormal tax profile, such as taking excessive input tax adjustments, continuous carry-forwards, or sudden increase in turnover;
4. Making substantial purchases from or making supplies to other blacklisted or suspended person;
5. Non-filing of sales tax returns by a registered person for six consecutive months;
On Recommendation of a Commissioner of any other jurisdiction;
6. Any other reason to be specified by the Commissioner;
Impact of Suspension
Commissioner shall issue written order to the concerned registered person detailing the reasons for suspension. The order shall also be provided to all other Large Taxpayer Units (LTUs)/Regional Tax Offices (RTOs), the FBR‘s computer system, the STARR computer system and the Customs Wing computer system for information and necessary action as per law;
Suspension of Registered person will make them ineligible to avail input tax adjustment/refund. Similarly, no input tax adjustment/refund shall be allowed to any other registered persons on the basis of invoices issued by such suspended person (whether issued prior to or after such suspension);
The suspended registered person will be issued a show cause notice (through registered post or courier service) within seven days of issuance of order of suspension by the Commissioner. The registered person will have an opportunity of hearing with fifteen days of the issuance of such notice clearly indicating that the will be blacklisted. In case of non-availability of the suspended person at the given address, the notice may be placed on the main notice Board of the LTU/RTO;
Where the show cause notice is not issued within seven days of the order of suspension, the order of suspension shall become invalid;