The Federal Board of Revenue (FBR) is gearing up to conduct a historic and comprehensive audit of income tax returns this year. According to sources, a large-scale audit has been approved, with an estimated 7 to 8 million returns expected to be examined through an automated digital system during the current fiscal year. Around 8,000 Inland Revenue officers and officials, along with 4,000 auditors, will be involved in the audit process. Sources said tools like Microsoft Excel filters and formulas will be used to spot irregularities in tax returns, while artificial intelligence and other digital technologies will support the audit operations. The audit will be carried out in three phases. The first phase will focus on commercial and industrial income tax returns. The second phase will target registered companies, including single-owner firms. The third phase will extend to individual taxpayers and salaried employees. Officials warned that strict action will be taken against anyone found submitting false information in their tax returns. Taxpayers who display undeclared wealth or income on social media inconsistent with their filings will also face penalties. Notices will be issued for hiding assets, holding benami (anonymous) wealth, or declaring assets under another person’s name, the sources said. The audit will assess returns from eight different analytical angles, the sources noted, adding that business entities showing lower income tax compared to the previous year will be prioritized for scrutiny.
FBR Set to Launch Widespread Audit of Income Tax Returns This Year
