FBR Chairman refrains officials from freezing bank accounts without prior notice, approval.

ISLAMABAD -- Newly appointed Federal Board of Revenue (FBR) Chairman Syed Shabbar Zaidi on Friday devised a mechanism to freeze bank accounts in case of a dispute, directing authorities against freezing accounts without his prior approval and notice to the account holder.

In what was his first order in the capacity of the FBR Chairman, Zaidi directed all chief commissioners inland revenue to inform the account holders 24 hours prior to freezing their accounts if they must do so.

"No bank account attachment unless the taxpayer's chief executive officer or principal officer or owner is informed at least 24 hours prior to attachment and the chairman FBR's approval is obtained," read the board's notification.

Talking to reporters on Friday, Zaidi explained that there is already a provision for freezing of a bank account as the last recourse in case of a dispute between the account holder and institutions.

"My intention and aim is to document the undocumented economy," he said, answering a question regarding tax reforms.

The documentation of the undocumented economy will automatically increase the tax base.

No one can estimate the [volume of] parallel economy...