Islamabad, Pakistan – The Federal Board of Revenue (FBR) is planning to outsource audits of high-net-worth individuals and companies to detect potential tax evasion.
The FBR aims to hire audit firms with a workforce of 4,000 professional auditors to scrutinize the income and assets of these taxpayers. However, this initiative requires significant funding, and the government has not yet allocated a budget for it.
FBR Chairman Rashid Mahmood Langrial will present a briefing to Prime Minister Shehbaz Sharif in the coming days, highlighting the potential for increased tax revenue through reforms and digitization. The News
The FBR’s data analysis reveals that a small percentage of taxpayers contribute a significant portion of the total tax revenue. The FBR plans to focus its efforts on these taxpayers, rather than wasting resources on the remaining 92% who are under-filers.
The FBR will use data from the National Database and Registration Authority (NADRA) to identify potential under-filers and send them notices to declare their income and assets.
The FBR is also addressing the issue of a large number of individuals who file “nil” returns to avoid higher withholding taxes. The FBR has the authority to prosecute such individuals under relevant tax laws.
To enhance its auditing capabilities, the FBR plans to outsource audits to experienced and reputable payroll firms. These firms will be tasked with conducting a comprehensive audit of the top 5% wealthiest individuals in the country.
The FBR’s efforts to strengthen tax enforcement and combat tax evasion are crucial for improving Pakistan’s revenue generation and addressing its economic challenges.
