FBR to ‘launch’ extensive audit of income tax returns this year
ISLAMABAD ( WEB NEWS )
The Federal Board of Revenue (FBR) is set to conduct a historic and comprehensive audit of income tax returns this year.
As per details shared by sources with ARY News, a large-scale audit of income tax returns has been approved, and between 7 to 8 million returns could be examined through an automated digital system during the ongoing fiscal year, according to sources.
Approximately 8,000 Inland Revenue officers and officials, along with 4,000 auditors, will participate in the audit process.
Sources said Microsoft Excel filters and formulas will be used to identify irregularities in income tax returns, while artificial intelligence and other digital tools will assist in the audit operations.
The audit will be carried out in three phases. In the first phase, commercial and industrial income tax returns will be reviewed. The second phase will cover registered companies, including single-owner firms. In the third phase, the audit will extend to individual taxpayers and salaried persons.
Sources added that strict action will be taken against those who provide false information in their tax returns. Taxpayers showing concealed wealth or income on social media inconsistent with their declared returns will also face action.
Notices will be issued for hiding assets, holding benami (anonymous) wealth, or declaring assets under another person’s name, the sources said.
The audit will assess returns from eight different analytical angles, the sources noted, adding that business entities showing lower income tax compared to the previous year will be prioritized for scrutiny.