The Federal Board of Revenue (FBR) is preparing to conduct a comprehensive and historic audit of income tax returns across Pakistan this year.
According to details, a large-scale digital audit has been approved, under which 7 to 8 million tax returns could be examined during the ongoing fiscal year through an automated system.
Around 8,000 Inland Revenue officers and officials and 4,000 auditors will participate in the audit operation. To detect discrepancies, authorities will utilize Microsoft Excel filters, formulas, artificial intelligence (AI), and other digital tools to ensure accuracy and transparency.
The audit will be conducted in three phases:
- Phase 1: Examination of commercial and industrial income tax returns.
- Phase 2: Scrutiny of registered companies, including single-owner firms.
- Phase 3: Review of individual taxpayers and salaried persons.
Officials said strict action will be taken against individuals who submit false information in their tax filings. Those displaying lifestyles or assets on social media inconsistent with their declared income will also come under investigation.
Notices will be issued to taxpayers hiding assets, possessing benami (anonymous) wealth, or declaring property under another person’s name, sources added.
The audit will analyze tax data through eight different analytical parameters, prioritizing business entities showing lower income tax payments compared to the previous year for detailed scrutiny.
