FBR detects Rs9.4bn tax fraud through forged wealth statements

The Federal Board of Revenue (FBR) has uncovered alleged tax fraud in which some taxpayers illegally revised their old wealth statements to add assets worth Rs9.41 billion in their declared returns, The News reported on Thursday.

According to the FBR’s official announcement, the FBR busted a fraud in which taxpayers illegally revised their old wealth statements to bring unexplained assets worth Rs9.41 billion into their declared wealth. A criminal case under the Anti-Money Laundering Act, 2010 has been registered and further cases are being processed.

The fraud was unearthed by the FBR’s Directorate General of Intelligence and Investigation (Inland Revenue) through a detailed analysis of FBR’s database, carried out with the support of Pakistan Revenue Automation Limited (PRAL). The analysis identified 85 taxpayers who, between March 2025 and June 2026, revised their wealth statements for tax years 2014 to 2019 and inserted cash, physical gold, prize bonds, properties and business capital that had never been declared before.

The law clearly bars this. Under the explanation to Section 116(3) of the Income Tax Ordinance, 2001, a wealth statement cannot be revised after five years from the due date of the original return. Every revision identified was made well beyond this limit.

In one case, registered by the Directorate of Intelligence and Investigation (Inland Revenue) Lahore, a taxpayer in Lahore region revised his wealth statement for tax year 2015 in May 2026 and inserted fictitious funds of Rs102.8 million. He then carried this amount forward through his wealth statements up to tax year 2025 and used it to account for seven properties worth Rs64.41 million bought in May and June 2026. When asked, he could not explain the source of the funds. The tax sought to be evaded in this case alone exceeds Rs46 million.

Regional Directorates of Intelligence and Investigation (Inland Revenue) have launched 48 criminal inquiries across Pakistan, while proceedings in the remaining cases are under process.

The money laundering case has been registered against the taxpayer and any abettors found involved, and further cases are being processed to bring everyone behind the fraud to justice.

The FBR has made it clear that no one will be allowed to use the tax system to whitewash unexplained wealth.