Section 23D: Power to Hold in Custody or Seize or Demand Security

1) If any person, firm, company or body conducts transaction with evasion of tax and if action is not taken immediately it is likely to have the accused absconded or evidence of the offence lost, the tax officer may, with the approval of the Director General, do, or cause to be done, the following acts:

(a) to seal the place of transaction,

(b) to seize the electronic equipment and its record,

(c) to execute a memorandum and demand cash or asset security in an amount equivalent to the tax evaded by the person believed to have committed the offence,

(d) to seize the bank account in the name of the taxpayer for three months,

Provided that the bank account may be seized for additional three months with the approval of the Director General in the case of non completion of the tax assessment process,

(e) to hold in custody for a maximum of forty-five days, not exceeding fifteen days at one time if no cash or asset security is deposited pursuant to clause (c).

2) The tax officer shall have such powers as the police have under law with respect to inquiry and investigation into the offence pursuant to this Act.