Section 227B of the Income Tax Ordinance 2001 empowers the FBR to reward individuals providing credible, evidence-backed information leading to the detection or recovery of evaded taxes.

The Federal Board of Revenue (FBR) has announced a reward mechanism for individuals providing credible information about income tax evasion, concealment, fraud, corruption and misconduct during Tax Year 2027.

According to the Income Tax Ordinance, 2001, updated up to June 30, 2026, Section 227B authorises the FBR to sanction rewards for whistleblowers whose information leads to the detection of tax evasion or other specified violations.

Under the provision, the FBR may issue notifications in the official Gazette prescribing the procedure for awarding rewards and determining their distribution among whistleblowers.

However, the law specifies circumstances in which reward claims will be rejected.

These include cases where the information provided has no value, is unsupported by evidence, is already available with the FBR or exists in public records.

A reward claim will also be rejected if no tax is collected through the information provided from which the FBR can pay the reward.

Section 227B defines a whistleblower as a person who reports concealment or evasion of income tax leading to the detection or collection of taxes, or provides information about fraud, corruption or misconduct.

The provision also covers reports concerning income tax authorities involved in fraud, corruption, misconduct or tax concealment.

The reward mechanism applies to Tax Year 2027, covering July 1, 2026, to June 30, 2027.