Newly inserted section 203A introduced in the finance bill Pakistan Budget 2021
“203A. Power to arrest and prosecute.–
(1) An officer of Inland
Revenue not below the rank of an Assistant Commissioner of Inland
Revenue or any other officer of equal rank authorised by the Board in this
behalf, who on the basis of material evidence has reason to believe that
any person has committed the offence of concealment of income or any
offence warranting prosecution under this Ordinance may cause the arrest of
such person.
(2) All arrests made under this Ordinance shall be carried out in
accordance with the relevant provisions of the Code of Criminal Procedure,
1898 (Act V of 1898).
(3) Notwithstanding anything contained in sub-section (1) and (2) or
any other provision of this Ordinance, where any person has committed
the offence of concealment of income or any offence warranting prosecution
under this Ordinance, the Chief Commissioner with the prior approval of
the Board may, either before or after the institution of any proceedings for
recovery of tax, compound the offence if such person pays the amount of
tax due along with such default surcharge and penalty as is determined
under the provisions of this Ordinance.
(4) Where the person suspected of the offence of concealment of
income or any offence warranting prosecution under this Ordinance is a
the company, every director or officer of that company whom the authorised
the officer has reason to believe is personally responsible for the actions of the
company contributing to offence of concealment of income or any offence
warranting prosecution under this Ordinance shall be liable to arrest:
Provided that any arrest under this subsection shall not absolve the company from the liabilities of payment of tax, default surcharge and penalty imposed under this Ordinance. 
