FBR unearths Rs9.41bn wealth fraud

The Federal Board of Revenue (FBR) has discovered a fraudulent scheme wherein taxpayers altered their prior wealth statements to conceal unexplained assets totaling Rs9.41 billion. The FBR announced the registration of a criminal case under the Anti-Money Laundering Act 2010, and additional investigations are underway. The Directorate General of Intelligence and Investigation (Inland Revenue) identified the fraud through a thorough examination of the FBR's database, aided by Pakistan Revenue Automation Ltd (PRAL).

The investigation revealed that 85 taxpayers between March 2025 and June 2026 amended their wealth statements for tax years 2014 to 2019. They added declarations for cash, physical gold, prize bonds, properties, and business capital that had never been reported before. The law prohibits such revisions; the explanation to Section 116(3) of the Income Tax Ordinance 2001 restricts wealth statement amendments to five years after the original return's due date.

Each revision detected had been made well beyond this stipulated period. For example, in a single case, a taxpayer updated his wealth statement for tax year 2015 in May 2026, inserting fabricated funds worth Rs102.8 million. He continued to utilize this sum in his wealth statements up to tax year 2025 and accounted for seven properties valued at Rs64.41 million acquired in May and June 2026.

When questioned, the taxpayer could not provide an explanation for the origin of the funds. The tax evasion in this case alone surpasses Rs46 million. The regional offices of the Inland Revenue have initiated 48 criminal investigations nationwide, while proceedings in the remaining cases are still ongoing.