ISLAMABAD: The Federal Board of Revenue (FBR) has launched a large-scale audit of millions of income tax returns to detect undeclared income, hidden assets, and misstatements. The initiative marks one of the most extensive tax compliance drives in Pakistan’s history.
Audit Targets Salaried, Corporate, and High-Income Taxpayers
In the first phase, the FBR will review between seven and ten million returns, covering salaried individuals, corporate taxpayers, and high-net-worth individuals. Officials confirmed that the returns of major business owners, CEOs, and senior government officers will also face scrutiny.
Focus on Discrepancies and Underreported Income
According to officials, the audit will target taxpayers whose declared income is at least 25 percent lower than last year’s taxable income. The goal is to identify false declarations and ensure strict adherence to tax laws.
AI and Data Analytics to Power Audit Operations
The FBR will deploy advanced data analysis tools, including Artificial Intelligence (AI), to process and compare millions of returns. The technology will help flag irregularities, detect hidden income streams, and speed up investigations.
Officials said the new system will make the audit process more efficient and transparent, focusing on major discrepancies rather than routine cases.
Penalties and Legal Action for Non-Compliance
Taxpayers found submitting false or incomplete returns could face heavy financial penalties and legal proceedings. The FBR emphasized that it will take strict action against anyone found concealing income or assets.
Audit Plan for 2025 Approved
The FBR’s audit plan for 2025 has already been approved, with projections showing that more than seven million returns may be reviewed by November 30. The board aims to audit up to 80 percent of this year’s total income tax filings.
Goal: Strengthening Compliance and Boosting Revenue
Officials said the initiative is part of a broader digital transformation strategy to modernize Pakistan’s tax system, enhance compliance, and increase national revenue. The FBR stressed that while the crackdown targets tax evasion, it will ensure fairness and transparency for honest taxpayers.
