ISLAMABAD – The Federal Board of Revenue (FBR) has unveiled Pakistan’s largest and most advanced tax audit program, targeting millions of income tax returns in a sweeping crackdown on hidden income and underreporting.
Massive Audit Drive Underway
Officials confirmed that the audit will cover more than 7 million returns this fiscal year, with salaried employees, corporate taxpayers, and high‑net‑worth individuals under scrutiny. In the first phase alone, between 700,000 and 1 million returns will be scanned, including those filed by CEOs, executives, and senior officials.
AI and Digital Tools to Detect Discrepancies
The FBR is deploying Artificial Intelligence (AI) systems alongside advanced Microsoft Excel filters and formulas to identify incorrect declarations and unreported earnings. Authorities expect the use of digital tools to accelerate the review process, reduce manual errors, and ensure data‑driven decision‑making.
Phased Audit Plan
The audit will be conducted in three phases with the participation of around 8,000 Inland Revenue officers and 4,000 auditors.
- Phase One: Focus on commercial and industrial sectors.
- Phase Two: Target single‑owner and registered companies.
- Phase Three: Scrutinize individual taxpayers’ returns.
Heavy Penalties for Non-Compliance
Taxpayers whose returns are found to be incorrect may face heavy fines and legal action. FBR estimates that nearly 25 percent of taxpayers paid less than their due share compared to last year. By November 30, the number of returns under review could exceed 7 million, with the board aiming to audit up to 80 percent of all submissions under its 2025 plan.
Encouraging Voluntary Compliance
Officials emphasized that the initiative is not only about detecting discrepancies but also about encouraging voluntary compliance. The campaign reflects the government’s commitment to modernizing Pakistan’s tax system, expanding the tax base, and holding individuals and companies accountable for their obligations.
Additional input: Dunya News
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