If we think about the negative result of tax violations that often leads to tax evasion and in different countries would enter irreparable strikes to the status of their national economy then can better understand the necessity of the existence penalties for those who violate the tax laws and we can realize its importance.
Afghan lawmakers are also considering the importance of the existence of legal measurement relating to tax crimes and offenses, and its role in prevention and reduction of such violations. The tenth chapter of Law on Administration of Taxation Affairs states some situations in which taxpayer is considered delinquent and deserve to be punished. The following briefly outlines some of these cases:
In case of intentional avoid from submission income tax sheets: The person who cannot provide its income tax sheets in accordance with the income tax law or until the expiration of the extended due date of the tax office, individual person will sentence by the court of competent jurisdiction to pay the fine of five thousand Afghanis (5,000) and legal person the sum of twenty thousand Afghanis (20,000).
In case of not withholding the taxes:The person who will not pay the withholding tax in accordance with provisions of tax laws without any reasonable excuse; the individual person will be sentenced by the court of competent jurisdiction to the payment of an extra amount of ten percent of the withholding tax, imprisonment which not exceeding six months or both (fines and imprisonment).
In case of not archiving and maintaining the records: The person who does not arrange and maintain his/her records intentionally in accordance with provisions of tax laws; individual person will be sentenced by the court of competent jurisdiction to pay the fine of 25,000 Afghanis and legal person the sum of 100,000 Afghanis, or imprisonment not exceeding six months or both (fines and imprisonment).
In case of non-cooperation with officials of revenue departments: The person who does not provide necessary facilities to the officials or not cooperating in cases specified by law in accordance with provisions of tax laws; individual person will be sentenced by the court of competent jurisdiction to pay the fine of 10,000 Afghanis and legal person the sum of 40,000 Afghanis.
In case of using false TIN intentionally: The person who intentionally uses incorrect TIN in tax return sheets, or any document that have been predictedin the tax laws; the individual person will be sentenced by the court of competent jurisdiction to pay the fine of twenty-five thousand Afghanis (25,000) and legal person to one hundred thousand Afghanis (100,000), Or to imprisonment not less than three months and not more than six months, or to both (fines and imprisonment).
Noncompliance with notifications and inquiries: The tax office can ask the person in written to provide documents, records, information, or computerized information which is available in tax office within the period expressed in the notice, or presence in the time and place specified in the notice in order to assess it’s tax affairs; the person who doesn’t complied the written notice without any reasonable cause; individual person will be sentence by the court of competent jurisdiction to pay the fine of 5,000 Afghanis and legal person the sum of 20,000 Afghanis.
In case of providing false or misleading statements: The person who intentionally provides false or misleading statements or removes a certain part of it; the individual person will be sentenced by the court of competent jurisdiction to pay the fine of 40,000 Afghanis and legal person the sum of 160,000 Afghanis, orimprisonment not exceeding six months or both (fines and imprisonment).
Intentionally creating obstacles to tax officials: The person who intentionally hamper the implementation of employees tasks which is cited by the tax law, individual person will be sentenced by the court of competent jurisdiction to pay the fine of 40,000 Afghanis and legal person the sum of 160,000 Afghanis, orimprisonment not exceeding six months or both (fines and imprisonment).
Finally, it should be noted that the above issues relate to taxpayers and conditions which are related to tax officials, auditors, and other involved parties are is not mentioned.
Masnad Legal Consultancy