The new Income Tax Law-2023 has granted tax officials the authority to disclose information about undeclared assets and income of tax evaders identified through investigations or inspections in the current financial year. This provision is aimed at enhancing tax collection efforts by publicly shaming tax evaders as a deterrent.
However, some economists express concerns about fairness, arguing that taxpayers often struggle to interpret tax laws correctly, and mistakes can be made by both taxpayers and tax officials. They fear that this provision could be misused to tarnish a taxpayer’s reputation, potentially leading to fear and panic among taxpayers. Despite these concerns, a senior tax official believes that publicizing details of tax evaders and loan defaulters will uphold the integrity of tax officials and improve transparency in tax collection, contributing to the development of a tax-paying culture in the country. The new law includes stringent penalties for unauthorized disclosure of taxpayer information by tax officials, ensuring privacy protection.
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