Law Minister Azam Nazeer Tarar on Friday defended the Federal Board of Revenue’s (FBR) practice of obtaining and sending bank account information to taxpayers, saying such measures are fully protected under law and consistent with international anti-money laundering standards.
Speaking in the Senate in response to a notice by Senator Asad Qasim regarding text messages sent to filers showing their bank balances and transactions, Tarar said financial scrutiny is a core part of tax regulation. “Banks are legally bound to provide information. You cannot say FBR should not ask questions,” he stated, adding that undeclared funds require transparency under modern compliance mechanisms.
Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry said the FBR had sent messages to both filers and non-filers where discrepancies were found between declared income and bank data. He cited Section 165A of the Income Tax Ordinance, which allows banks to share deposit information, along with other provisions granting FBR access to data from the FIA, State Bank, NADRA, and utilities.
Addressing privacy concerns, Chaudhry clarified that account information is sent only to the individual concerned and is not broadcast. Despite the government’s defense, the Senate referred the matter to the relevant standing committee for further examination due to sensitivities around data protection and taxpayer privacy.
