1.On what conditions a person is entitled to reward?
In case someone avoids or attempts to avoid the tax liability as a whole or in part and if someone informs the same along with evidence such an informant may be awarded for assisting the administration in levying tax.
2. What amount of reward is given if the Inland Revenue Office levies tax on the basis of the help of any individual?
The individual who gives such information is entitled to receive reward equal to Twenty percent of additional tax amount recovered on the basis of such information out of the additional tax amount recovered. If there are more than one person to receive reward, such reward shall be distributed on proportional basis.
If the individual has given information about the leakage of the revenue, such individual can be rewarded with amount up to Rs. 10000 on the basis of the truth of such information.
3. What documents are to be submitted while giving notice regarding tax avoidance to receive the reward? Can such person keep their identity secret?
Such person needs to submit the actual document that proves tax avoidance. The name, surname, address of such informant shall be kept confidential.
4. How long does it take to receive reward after application for such reward is given?
There is no clear legal provision regarding the time of giving reward. Generally, reward could be received after the avoided tax has been recovered on the basis of the information about tax avoidance is given.
5. Where can one file complaint if he/ she does not receive reward as provided by law?
If reward is not received even after recovery of the avoided tax on the basis of the information of tax avoidance, he/she can file compliant before Director General of the Inland Revenue Department or Ministry of Finance. Case can also be filed before court claiming such reward in accordance with law.