Chapter 14: Recovery of Outstanding Taxes

68. General Procedure for Recovery of Outstanding Taxes

1. The Commissioner may appoint one or more VAT officers under the Deputy Commissioner as Debt Recovery Officer (DRO) for the recovery of outstanding taxes.
2. The DRO shall issue a Debt Recovery Certificate to the defaulting taxpayer in Form "Mushak-14.1" claiming the outstanding tax under Section 95(3).

69. Recovery from Funds under Tax Authority Control

1. If any funds of the defaulting taxpayer are under the control of income tax, customs, excise, or VAT authorities, the DRO shall send a notice along with the original or certified copy of the Debt Recovery Certificate to the respective Commissioner in Form "Mushak-14.2".
2. After receipt of the certificate or notice, the Commissioner shall recover the amount from the controlled funds and deposit it in the account of the issuing Commissioner’s office, notifying the DRO via Form "Mushak-14.3".

70. Recovery from Individuals, Associates, Financial Institutions, or Banks

1. If the taxpayer’s funds are under the control of any individual, associate, financial institution, or bank, the DRO shall send a request along with the original or certified copy of the certificate or notice in Form "Mushak-14.2".
2. After receipt of the certificate, the entity shall recover the specified amount from funds under their control and deposit it in the issuing Commissioner’s account within 3 working days, notifying the DRO via Form "Mushak-14.3".
3. Compliance with the DRO’s request under sub-rule (1) is mandatory, and any violation will be treated as a punishable offense under Section 82(2) and Section 85(2).

71. Freezing of Bank Accounts of Defaulting Taxpayer

For recovery of outstanding taxes under Section 95(5)(গ), the DRO shall follow the procedure specified in Rule 64 for freezing bank accounts of the defaulting taxpayer.

72. Locking Business Premises of Defaulting Taxpayer

1. To recover outstanding taxes, the DRO may issue a notice in Form "Mushak-14.4" to lock the business premises until recovery is complete.
2. The taxpayer shall comply within the specified time and notify the DRO via Form "Mushak-14.5".
3. If the taxpayer fails to comply, the DRO shall lock the premises and post a notice in Form "Mushak-14.6".
4. The DRO may request the relevant authorities to stop electricity, gas, telephone, and other services during the lock, using Form "Mushak-14.7", and compliance is mandatory.
5. For full or partial recovery, the DRO may reopen the premises based on a repayment undertaking and notify the service providers via Form "Mushak-14.8".
6. The DRO shall maintain a register of all actions under this rule in Form "Mushak-14.9".

73. Seizure of Movable Property of Defaulting Taxpayer

1. To recover outstanding taxes, the DRO may issue a seizure order in Form "Mushak-14.10" following the procedure in Rule 75.
2. The seized movable property shall be kept:
   • Under DRO or officer supervision;
   • At a safe location;
   • Locked within taxpayer’s premises;
   • With a custodian;
   • Or any other secure location as deemed safe by DRO.
3. If locked at taxpayer’s premises, the DRO shall follow the procedures in Rule 72(3)–(6).
4. After issuance of seizure order, the taxpayer or representative may not sell, transfer, or hand over the property.

74. Attachment of Immovable Property of Defaulting Taxpayer

1. To recover outstanding taxes, the DRO may issue an attachment order in Form "Mushak-14.11" following the procedure in Rule 72.
2. The attached immovable property shall be taken into DRO or officer custody.
3. After issuance of attachment order, the taxpayer or representative may not sell, transfer, or hand over the property.
4. The DRO may request service authorities to stop electricity, gas, telephone, and other services using Form "Mushak-14.7", and compliance is mandatory.