ISLAMABAD: The federal government has decided to step up scrutiny of individuals engaging in financial transactions that surpass their declared income, with the Federal Board of Revenue (FBR) leading the initiative.
FBR Chairman Malik Amjed Zubair Tiwana informed the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar, that banks would assist in identifying inconsistencies between individuals’ reported income and the actual volume of their transactions.
“We will provide banks with taxpayer income and turnover data based on national identity card details,” Tiwana explained. “Banks will be required to report any transactions that don’t align with the FBR’s records, though they won’t be instructed to block them.”
As part of this new mechanism, financial institutions will flag transactions that exceed the income figures stated in individuals’ wealth statements or tax returns. Tiwana stressed that the goal of these measures is to ensure greater transparency, stating, “Any significant deviation will be flagged and reported to tax authorities.”
During the session, Pakistan Muslim League-Nawaz (PML-N) lawmaker Bilal Azhar Kayani clarified that non-filers would be allowed to purchase property for the first time, while taxpayers could buy new properties for themselves or their families. However, he emphasized that these real estate transactions would undergo enhanced scrutiny, whether the payment was made in cash or through equivalent assets.
Committee Chairman Naveed Qamar questioned the inclusion of asset definitions in the legislation, to which Tiwana responded that it was necessary for transparency purposes.
This move is part of the government’s broader efforts to improve tax compliance and address financial irregularities across various sectors.
In a related development, the FBR recently uncovered a tax fraud case involving Rs 977 million under the Export Facilitation Scheme (EFS). The scam, carried out by two fraudulent companies, involved the misreporting of high-value metal imports.
These companies had imported 47 containers of precious metal molds but manipulated records to declare only 111 metric tons, while 1,560 metric tons went unreported.
The first company evaded Rs 499 million, while the second avoided Rs 478 million in taxes. Investigations further revealed that the companies were not listed in the FBR’s active registration database, raising concerns about gaps in regulatory oversight.
