NBR warns taxpayers against ‘zero return’ misconceptions

The National Board of Revenue (NBR) today cautioned taxpayers about misleading social media posts promoting the filing of "zero returns", terming the practice illegal under the Income Tax Act 2023.

In a press release, the NBR said some online content has been spreading the false notion that taxpayers can submit returns by filling all sections with "zero". Such misinformation has led certain individuals to make false declarations regarding their income, expenses, assets and liabilities.

"There is no provision for filing any kind of return called 'zero return'," the NBR said, adding that taxpayers are legally required to accurately declare all relevant financial information in their returns.

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Submitting incorrect information, including showing income, expenses, assets or liabilities as zero without reflecting the actual figures, is a punishable offence under sections 312 and 313 of the Income Tax Act.

Offenders could face imprisonment of up to five years, the tax authority warned.

The NBR also said that even if a person's income is not taxable, they must still provide accurate details in their return.

The NBR further advised taxpayers to be wary of fraudulent claims and to avoid following misleading instructions circulating on social media.

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The tax authority said that while no tax is payable if income falls below the taxable threshold, there is no legal basis for filing a return showing zero against all heads in the form.

The NBR urged taxpayers to act responsibly by submitting truthful returns, thereby avoiding imprisonment, fines and other legal consequences