The National Board of Revenue (NBR) issued a warning on Sunday regarding the illegality of filing what are termed ‘zero tax returns’ under the Income Tax Act 2023, which could lead to imprisonment for a duration of up to five years.

In a statement released on Sunday, the NBR indicated that it has observed numerous misleading posts circulating on social media that suggest taxpayers can submit a return by entering ‘zero’ in all fields related to income, expenditure, assets, and liabilities.

The NBR made it clear that the Income Tax Act does not allow for such a return. Taxpayers are legally obligated to report their actual income, expenditure, assets, and liabilities in their tax returns.

Providing false or misleading information, such as declaring zero income, expenditure, assets, or liabilities when that is not accurate, is considered a criminal offense under sections 312 and 313 of the law, according to the NBR.

Those found guilty may face a prison sentence of up to five years.

The NBR emphasized that taxpayers whose incomes fall below the taxable threshold are not required to pay taxes; however, they must still provide accurate information in their returns. ‘Zero returns’ are not allowed, even if there is no tax due.

The board called on taxpayers to behave as responsible citizens by submitting honest returns and aiding in national development, while steering clear of fraudulent practices promoted on social media that could result in criminal consequences.