In a significant legal move, the federal government has introduced key amendments in the Finance Bill 2025-26, redefining the terms “accomplice” and “facilitator” to clamp down on tax evasion. These reforms aim to bolster the legal framework against individuals and entities aiding or abetting tax fraud, particularly through the misuse of business bank accounts.
Under the revised definition, any person who uses or allows the use of a business bank account for tax evasion purposes will now be officially treated as an accomplice. This includes not only direct participants in tax fraud but also individuals who knowingly assist or conspire with others to evade taxes.
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Authorities have been given broader powers to initiate criminal prosecution, including the possibility of imprisonment, against such facilitators. The law now encompasses indirect involvement in fraudulent activities, such as the creation or use of fake invoices, even when done without the consent of the registered taxpayer. Such acts will now constitute legal offenses under the revised tax code.
Additionally, the amendments specify that any form of assistance or conspiracy in tax-related crimes under the Sales Tax Act will be considered as full participation in the offense. This marks a substantial tightening of tax enforcement laws and is designed to close the legal loopholes previously exploited by intermediaries and collaborators in tax fraud schemes.
