The National Board of Revenue (NBR) has warned taxpayers against filing so-called “zero returns” based on misleading social media advice, saying the practice is illegal under the Income Tax Act 2023.

In a statement yesterday, the tax authority said some online content falsely suggests taxpayers can submit returns with all income, expenses, assets, and liabilities recorded as zero.

Such submissions, the NBR stressed, amount to making false declarations and are punishable offences under sections 312 and 313 of the law.

“There is no provision for filing any kind of return called ‘zero return’,” the statement said, adding that taxpayers must declare accurate figures even if their income is below the taxable threshold.

The NBR warned that offenders could face up to five years in prison. It urged people to avoid following fraudulent instructions spread online and to ensure their returns reflect actual financial information.

While no tax is payable for incomes under the threshold, the NBR said there is no legal basis for completing a form with zero values in all sections. Taxpayers were advised to act responsibly to avoid legal consequences, including fines and imprisonment.