Ignoring an FBR or SRB Notice? It Could Cost You More Than You Think
A Legal Insight by Roshan Zamir & Co., Advocates
Author:
Salman Pirzada
Head of Chambers | Roshan Zamir & Co., Advocates
Published: July 2026
Category: Taxation
Reading Time: 6 Minutes
Introduction
Every year, thousands of taxpayers across Pakistan receive notices from the Federal Board of Revenue (FBR) or the Sindh Revenue Board (SRB). Unfortunately, many people either ignore these notices altogether or assume that nothing will happen if they do not respond.
Some believe the notice was issued by mistake. Others think that avoiding it will somehow make the issue disappear. In practice, this is one of the most common and costly mistakes a taxpayer can make.
A single unanswered notice can lead to ex parte proceedings, tax demands, attachment of bank accounts and lengthy litigation. In many cases, these consequences could have been avoided simply by responding to the notice within the prescribed time.
This Legal Insight explains why notices issued by the FBR and SRB should never be ignored and what may happen if a taxpayer chooses not to respond.
Why Does the FBR or SRB Issue a Notice?
Not every notice means that a taxpayer has done something wrong.
Tax authorities issue notices for a variety of reasons. They may require clarification regarding a tax return, supporting documents, explanations for a transaction, reconciliation of information or compliance with a statutory requirement.
In many cases, the notice is simply an opportunity for the taxpayer to explain their position before any adverse action is taken.
For this reason alone, every notice deserves proper attention.
The Biggest Mistake Taxpayers Make
One misconception we frequently encounter in practice is that an FBR or SRB notice can simply be ignored.
Some taxpayers leave the notice unopened. Others assume that because they have already paid their taxes, there is no need to respond. Some wait until they receive another notice, believing they will have plenty of time later.
Unfortunately, tax proceedings do not stop simply because a taxpayer decides not to participate.
Once the prescribed time for replying expires, the authorities are legally entitled to proceed further in accordance with the applicable tax laws.
What Happens If You Do Not Respond?
Ignoring a notice does not bring the matter to an end. Instead, it usually marks the beginning of a series of legal proceedings.
While the exact procedure depends on the nature of the case and the applicable law, the process generally follows this sequence:
- A notice is issued by the FBR or SRB.
- The taxpayer fails to submit a reply within the prescribed time.
- A Show Cause Notice may be issued.
- If there is still no response, the matter may proceed ex parte.
- An ex parte assessment or order may be passed based on the information available with the tax authority.
- A tax demand may be created against the taxpayer. Unless suspended, modified or set aside in accordance with law, that demand becomes recoverable and may lead to recovery proceedings by the tax authorities.
- Recovery proceedings may be initiated to recover the outstanding amount.
At that stage, resolving the matter becomes significantly more difficult, time consuming and expensive than it would have been had the taxpayer responded to the original notice.
Bank Account Attachment – A Consequence Many Taxpayers Do Not Expect
One of the most serious consequences of an unpaid tax demand is the attachment of the taxpayer’s bank account in accordance with the applicable legal provisions.
Once recovery proceedings commence, the tax authority may direct the bank to attach the account for recovery of the outstanding demand.
If sufficient funds are available, the amount may be recovered towards the outstanding tax liability.
Where the available balance is insufficient, the attachment may continue until the outstanding demand is satisfied in accordance with the law. As further amounts are deposited into the account, they may become subject to recovery against the outstanding demand.
Many taxpayers only become aware of the seriousness of the matter when they suddenly discover that they are unable to freely operate their bank account.
By This Stage, Your Options Become Limited
Once an ex parte order has been passed and a tax demand has been created, the taxpayer is no longer dealing with a simple notice.
Instead of submitting an explanation in response to the original notice, the taxpayer may now be required to challenge the order before the appropriate appellate authority, depending upon the applicable law and pecuniary jurisdiction.
Appeal proceedings often involve additional time, legal costs and procedural requirements that could have been avoided had the matter been addressed at the initial stage.
In many situations, responding properly to the first notice is far simpler than trying to undo the consequences of an ex parte order.
Can These Consequences Be Avoided?
In many cases, yes.
Receiving a notice from the FBR or SRB does not automatically mean that additional tax will become payable. It simply means that the tax authority requires a response.
A timely, well prepared and legally supported reply often resolves the matter without the need for further proceedings.
Even where additional information or documents are required, the law generally provides an opportunity for the taxpayer to present their case before an adverse order is passed.
The key is to engage with the process rather than ignore it.
Practical Guidance
If you receive a notice from the FBR or SRB:
- Read the notice carefully and understand what information has been requested.
- Note the deadline for submitting your response.
- Gather the relevant documents and supporting evidence.
- Do not assume that the matter will disappear on its own.
- Seek professional legal or tax advice if you are uncertain about your rights or obligations.
- Respond within the prescribed time or seek an extension where the law permits.
Taking prompt action at the initial stage can often prevent unnecessary litigation, recovery proceedings and financial hardship.
Conclusion
Ignoring an FBR or SRB notice is rarely in a taxpayer’s best interest.
What may appear to be an ordinary letter can quickly develop into ex parte proceedings, tax demands, recovery action and attachment of bank accounts. By the time the taxpayer decides to act, the available legal remedies are often more limited, more expensive and considerably more time consuming.
The simplest and most effective approach is to treat every notice seriously, respond within the prescribed time and obtain professional legal advice where necessary.
In tax matters, timely action is almost always easier and far less costly than trying to reverse the consequences later.
Author’s Note
In our practice, we have observed that many tax disputes arise not because taxpayers deliberately evade their obligations, but because they underestimate the importance of notices issued by the tax authorities. Understanding your legal rights, complying with statutory timelines and responding appropriately at the earliest stage can often prevent avoidable disputes and protect your legal interests.
About the Author
Salman Pirzada
Head of Chambers
Roshan Zamir & Co., Advocates [Pakistan]
Advisors Zone LL.C F.Z. [Dubai]
LL.M [SOAS, University of London]
SRA Registered Foreign Lawyer [England & Wales]
Corporate, Commercial & Tax Law Consultant
Disclaimer
The contents of this Legal Insight are intended solely for general informational purposes and do not constitute legal, tax, or professional advice, nor do they create a lawyer-client relationship. The law may change over time, and its application varies according to the facts of each case. Professional legal advice should be obtained before acting or refraining from acting on the basis of any information contained in this Legal Insight.
