FBR plans crack down on taxpayers with transactions exceeding declared income

The Federal Board of Revenue (FBR) has resolved to intensify its oversight of individuals whose transactions surpass their reported income.

The initiative is part of ongoing efforts to combat tax evasion and enhance transparency within the financial sector.

During a session of the National Assembly’s Finance Standing Committee, FBR Chairman Rashid Langrial disclosed that banks will be mandated to provide information regarding taxpayers’ income and turnover linked to their identification cards.

Langrial underscored the importance of collaboration between the FBR and banks to verify transaction amounts against official income declarations.

Additionally, he mentioned that banks will be directed to report any inconsistencies between an individual’s transaction levels and their declared income in wealth statements or tax returns.

Although banks will not be required to halt these transactions, they must promptly inform the FBR for further scrutiny.

This initiative aligns with the government’s comprehensive strategy to address individuals engaged in financial activities that do not correspond with their reported income, thereby reinforcing the commitment to greater accountability and equity within the tax system.