Parliament Ratifies Tax Amendment, Assigns PMO to Lead Conciliation, Imposes 10pc Penalty on Late Evidence

Jul 4 , 2026

The Prime Minister’s Office will appoint independent tax conciliators while taxpayers face a 10pc penalty for late evidence under the Federal Tax Administration Amendment ratified by Parliament last week. By shifting the selection of “conciliators” from the tax authority to the PMO, authorities aim to establish a neutral dispute-resolution system to speed up out-of-court settlements. Experts describe the move as a high-stakes reform with notable institutional risks. The legislation, passed unanimously following a report from the Plan, Budget and Finance Affairs Standing Committee, introduces a 10pc penalty on additional tax liabilities when taxpayers submit new evidence after assessment that significantly alters liability. The measure targets delays linked to withheld information during initial audits. It also strengthens accountability by holding company managers and finance heads personally liable for tax crimes committed by their organisations unless they prove due diligence and non-involvement. A transitional clause ensures that cases filed before ratification proceed under the previous legal framework. Authorities say the amendment is intended to strengthen tax administration, support electronic systems, improve dispute resolution efficiency, and align governance with international standards.