Taxpayers allegedly revised old wealth statements to insert previously undeclared assets, prompting criminal proceedings
The Federal Board of Revenue (FBR) has uncovered a fraud involving taxpayers who allegedly manipulated old wealth statements to incorporate previously unexplained assets worth Rs9.41 billion into their declared wealth.
The tax authority said on Wednesday that a criminal case had been registered under the Anti-Money Laundering Act, 2010, while further cases were being processed against those allegedly involved.
FBR Identifies 85 Taxpayers
The fraud was detected by the Directorate General of Intelligence and Investigation (Inland Revenue) through detailed analysis of the FBR database, conducted with support from Pakistan Revenue Automation Limited (PRAL).
The analysis identified 85 taxpayers who, between March 2025 and June 2026, revised wealth statements covering tax years 2014 to 2019.
According to the FBR, the revised statements included cash, physical gold, prize bonds, properties and business capital that had not previously been declared.
The tax authority said such revisions were not permitted under the law. 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.
The FBR said all revisions identified in the analysis were made after the statutory time limit had expired.
Lahore Case Involves Rs102.8m
In one case registered by the Directorate of Intelligence and Investigation (Inland Revenue) Lahore, a taxpayer allegedly revised a wealth statement for tax year 2015 in May 2026 and inserted fictitious funds worth Rs102.8 million.
The taxpayer subsequently carried the amount forward through wealth statements up to tax year 2025 and used the funds to account for the purchase of seven properties worth Rs64.41 million in May and June 2026.
The FBR said the taxpayer was unable to explain the source of the funds when questioned. The tax allegedly sought to be evaded in the case exceeds Rs46 million.
48 Criminal Inquiries Launched
Regional Directorates of Intelligence and Investigation (Inland Revenue) have launched 48 criminal inquiries across Pakistan, while proceedings in the remaining identified cases are ongoing.
The FBR said the money-laundering case had been registered against the taxpayer and any abettors found to have been involved. Further cases are also being processed.
The tax authority said its data analytics capabilities would continue to identify attempts to manipulate wealth declarations and warned that taxpayers found involved in such practices could face penalties and prosecution under the law.