The Federal Board of Revenue (FBR) has uncovered an alleged tax fraud involving Rs 9.41 billion in previously undeclared assets added to wealth statements.
The FBR said taxpayers illegally revised old wealth statements to declare cash, gold, prize bonds, properties and business capital. Authorities registered a criminal case under the Anti-Money Laundering Act 2010 and are processing additional cases.
The Directorate General of Intelligence and Investigation (Inland Revenue) detected the fraud after analysing FBR’s database with support from Pakistan Revenue Automation Ltd (PRAL). The investigation identified 85 taxpayers who made suspicious revisions between March 2025 and June 2026.
Taxpayers Revised Old Wealth Statements
The taxpayers revised wealth statements for tax years 2014 to 2019, despite legal restrictions on such amendments. Under Section 116(3) of the Income Tax Ordinance 2001, taxpayers cannot revise a wealth statement more than five years after the original return’s due date.
Investigators found that all identified revisions occurred beyond the legally permitted period. Authorities are now examining how taxpayers used the newly declared assets and whether they helped conceal taxable income.
Investigation Finds Rs 102.8 Million Case
In one case, the Lahore Directorate of Intelligence and Investigation found that a taxpayer added Rs 102.8 million in fictitious funds to a 2015 wealth statement in May 2026.
The taxpayer then carried the amount through wealth statements until tax year 2025. He subsequently used the funds to account for seven properties worth Rs 64.41 million purchased in May and June 2026.
However, the taxpayer failed to explain the source of the funds when questioned by investigators. The alleged tax evasion in that case alone exceeds Rs 46 million.
Meanwhile, regional intelligence directorates have launched 48 criminal inquiries across Pakistan. Proceedings against taxpayers in the remaining cases are also underway.
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