“The person who commits, causes to commit or attempts to commit the tax fraud shall pay a penalty of Rs25,000 or 100 per cent of the amount of tax evaded or sought to be evaded, whichever is higher,” according to the amended Finance Bill.

“Without prejudice to the above, he shall also be liable, upon conviction by a special judge to imprisonment for a term which may extend to five years if the tax evaded or sought to be evaded is less than Rs1 billion, and which may extend to 10 years if the tax evaded or sought to be evaded is Rs1 billion and above, and fine which may extend to an amount equal to the amount of tax evaded or sought to be evaded, or with both,” it said.

Moreover, the government has also penalise the person who helps others in tax fraud.

“The person who abets or connives in commissioning of tax fraud shall be liable, upon conviction by a special judge to imprisonment for a term which may extend to five years if the tax evaded or sought to be evaded is less than Rs1 billion, and which may extend to 10 years if the tax evaded or sought to be evaded is one billion rupees and above, and with fine which may extend to an amount equal to the amount of tax evaded or sought to be evaded or with both.”