ISLAMABAD – The FBR has announced a large-scale initiative to audit millions of income tax returns to identify undeclared income and misstatements. Taxpayers submitting false or incomplete returns may face heavy fines and legal consequences.
In the first phase, the FBR plans to review between seven and ten million returns. The audit will cover salaried employees, corporate taxpayers, government officials, and high-profile individuals including CEOs and big capitalists. Officials stated that returns showing a taxable income decrease of 25 percent or more compared to the previous year will be closely examined.
The initiative aims to detect discrepancies and hidden income, ensuring compliance with Pakistan’s tax laws. The FBR emphasized that accurate reporting is mandatory and that no leniency will be granted to those attempting to evade taxes.
Advanced technology and AI will play a central role in the audits. The FBR will use artificial intelligence and modern data analysis tools to efficiently identify irregularities. Officials said this approach is part of a broader plan to modernize tax compliance and boost revenue collection while ensuring fairness in enforcement.
Taxpayers whose returns are found inaccurate will face substantial penalties and potential legal action. The FBR has warned that undeclared income or false statements will not be tolerated, and all legal measures will be applied against offenders.
The 2025 audit plan has already received approval, with projections indicating that over seven million tax returns may be reviewed by November 30.
The FBR chairman stated that the board’s ultimate goal is to audit up to 80 percent of income tax returns submitted this year, demonstrating the agency’s commitment to improving transparency and accountability in Pakistan’s taxation system.
In other news read more about IMF Mission Arrives In Pakistan, Seeks Progress On Budget And Public Finance Reforms
The initiative is expected to enhance revenue collection significantly while sending a clear message that compliance with tax laws is mandatory. The FBR urged taxpayers to ensure accurate and complete filings to avoid penalties or legal issues.
