The Federal Board of Revenue (FBR) has detected suspected wealth declaration fraud involving around Rs9.41 billion, with authorities registering a criminal case under the Anti-Money Laundering Act, 2010 and initiating action in other cases.
The irregularities were identified by the Directorate General of Intelligence and Investigation (Inland Revenue) through an extensive review of the FBR’s digital records, with technical support from Pakistan Revenue Automation Ltd (PRAL).
According to the FBR, the investigation identified 85 taxpayers who amended their wealth statements between March 2025 and June 2026 for tax years ranging from 2014 to 2019. The revised declarations included previously unreported assets such as cash holdings, gold, prize bonds, property and business capital.
Officials said such revisions were not permissible under the applicable tax law.
The FBR pointed to the explanation attached to Section 116(3) of the Income Tax Ordinance, 2001, which limits the period for revising a wealth statement to five years from the due date of the original return. The revisions flagged during the investigation were allegedly made after this statutory period had expired.
In one case investigated by the Lahore Directorate of Intelligence and Investigation (Inland Revenue), a taxpayer revised his wealth statement for tax year 2015 in May 2026 and declared Rs102.8 million in previously unreported funds.
The amount was subsequently carried forward in the taxpayer’s wealth statements until tax year 2025 and was allegedly used to explain the purchase of seven properties worth Rs64.41 million during May and June 2026.
The taxpayer was unable to provide an explanation for the source of the funds when questioned by investigators, according to the FBR. Authorities estimated that the alleged tax evasion in this individual case exceeded Rs46 million.
Across the country, Regional Directorates of Intelligence and Investigation (Inland Revenue) have initiated 48 criminal inquiries, while scrutiny and proceedings in the remaining cases are continuing.
