CONSTITUTIONAL GUARANTEES AND FISCAL ENFORCEMENT: A DOCTRINAL STUDY OF INCOME TAX IN PAKISTAN THROUGH THE LENS OF ARTICLE 10A AND DUE PROCESS IN TAX CASES

Abstract

This article explores the constitutional aspects of income tax evasion in Pakistan from an analytical perspective informed by the 1973 Constitution, the Income Tax Ordinance, 2001, and superior court judgments. It is not just an administrative or economic issue of evasion but a constitutional one, posing a challenge to citizens' obligations, constitutional rights, and the scope of the enforcement authorities' powers. The analysis looks at the constitutional document that regulates taxation, particularly through Articles 4, 5, 7, 10A, 14, 23-24, 25, and 77 and examines the implications of the provisions on the enforcement powers of Federal Board of Revenue. It critically discusses some of the important judicial pronouncements such as Elahi Cotton Mills, Mustafa Impex, Pakistan Tobacco line of cases and the recent judgments of the Federal Constitutional Court on the powers of search and seizure under section 175 and super tax. The article argues that the constitutional and statutory framework of Pakistan offers robust theoretical safeguards for taxpayers, but the absence of a linkage between the rules and their enforcement undermines the constitutional legitimacy, further reduces tax morality and is a major cause of a low tax to GDP ratio in Pakistan. It argues that for sustainable revenue collection, administrative reforms, digitization, and a culture of rights-based enforcement, based on proportionality, procedural fairness, and non-discrimination, are essential (FBR, 2024; The News, 2024).