FBR tax audit process announced after 1.7 million people declared no income on their FBR tax return this year. Out of 5.5 million returns filed so far, almost one-third show zero income, which has raised concerns at the tax authority.
Officials said that around 977,000 taxpayers reported less income compared to last fiscal year. They suspect that most of these cases may be misreported. Some exporters even reported losses while their businesses were still active. The FBR plans to send notices to these taxpayers after the October 31 deadline. People will get a chance to correct their tax return before any legal action is taken.
To make this audit effective, the FBR has hired 2,000 auditors. They will carefully check tax returns to find incorrect or false declarations. A senior official said that even the zero-income returns provide valuable information. The FBR will use this data to identify more taxpayers and expand the tax base.
The tax authority has already sent reminders to about 853,000 taxpayers. They warned them that they already have information about their financial activities. These messages included income estimates based on FBR records. People were asked to report their income correctly to avoid further checks or penalties.
FBR Chairman Rashid Mahmood Langrial confirmed that the department will take strict action against those hiding income. He added that the department will send two notices before conducting assessments on taxpayers who do not respond. Officials clarified that genuine zero-income claims are not a problem, but cases that conflict with evidence of financial activity will be investigated.
The FBR has extended the tax filing deadline to October 31. The authority expects up to three million more returns before the cutoff. However, FBR now has a difficult task to make sure everyone pays the right tax. The audit campaign is necessary to improve trust in the tax sy
