FBR uncovers Rs9.41bn wealth statement fraud, registers money laundering case

The Federal Board of Revenue (FBR) has discovered a significant fraud involving the illegal amendment of wealth statements to include undisclosed assets amounting to Rs9.41 billion, leading to a criminal case under the Anti-Money Laundering Act, 2010. The fraudulent activity was identified by the Directorate General of Intelligence and Investigation (Inland Revenue) after analyzing the FBR database in collaboration with Pakistan Revenue Automation Limited (PRAL), as reported on Wednesday.

The investigation pinpointed 85 taxpayers who, during the period from March 2025 to June 2026, altered their wealth statements for tax years 2014 to 2019, adding assets that were not previously declared, such as cash, physical gold, prize bonds, properties, and business capital. According to Section 116(3) of the Income Tax Ordinance, 2001, a wealth statement cannot be revised more than five years after the due date of the original return.

The FBR confirmed that all detected revisions occurred beyond this legally permitted timeframe. In a case examined by the Directorate of Intelligence and Investigation (Inland Revenue) in Lahore, a taxpayer revised his wealth statement for the tax year 2015 in May 2026, inserting fictitious funds of Rs102.8 million. Subsequently, the taxpayer carried forward this unexplained amount through subsequent wealth statements up to tax year 2025 and utilized it to account for seven properties valued at Rs64.41 million, which were purchased in May and June 2026.

The taxpayer failed to provide a satisfactory explanation for the origin of these funds when interrogated, and the amount of tax evasion in this case exceeds Rs46 million, according to the FBR. Regional offices of the Intelligence and Investigation (Inland Revenue) across Pakistan have initiated 48 criminal inquiries, while the remaining cases are currently under investigation.

The FBR has registered a money laundering case against the taxpayer and any accomplices involved, with additional cases still being processed. The tax authority has emphasized that its data analytics will continue to identify any tampering with the tax system, warning that individuals involved in concealing unexplained wealth will face penalties and prosecution.