Islamabad, February 7, 2024 – The Federal Tax Ombudsman (FTO) has directed an immediate investigation into a case of unauthorized access to tax data, revealing a concerning breach in the system.
The directive comes in the wake of a complaint filed by a non-resident Pakistani residing in the United States, who discovered illicit activities linked to her tax profile.
The complainant, an overseas Pakistani who has been living in the United States since 2001, brought the matter to the attention of the FTO after encountering complications with her Federal Board of Revenue (FBR) tax filer’s account. On July 5, 2023, she reached out to the Chief Commissioner of the Regional Tax Office (RTO) in Lahore, reporting the illegal registration of an FBR tax filer’s account in her name. Unfortunately, her initial communication went unanswered.
Highlighting that she had neither applied for a National Tax Number (NTN) in Pakistan nor had any income within the country, the complainant emphasized that, according to the Income Tax Ordinance of 2001, she was not liable for NTN registration. Disturbingly, she discovered on July 4, 2023, that someone had applied for an NTN using her identity. The complainant promptly informed the FBR about the unauthorized NTN registration, clarifying that the associated mobile number and email did not belong to her. With the assistance of the Local Revenue Office (LRO), she managed to regain control of her FBR account on July 11, 2023, by changing both the mobile number and email address.
At the time of her initial access, the complainant noted that the system displayed no declared assets and no filed taxes. However, on October 12, 2023, a second attempt to compromise the account occurred. A fraudulent income tax return, accompanied by a fabricated wealth statement containing assets unrelated to her, was uploaded. The perpetrator manipulated the profile once again, changing the mobile number and email address, leaving the complainant unable to access her account.
Upon thorough investigation, the FTO discovered that officials within the FBR, specifically the IT Wing, were responsible for the unauthorized access and manipulation of the complainant’s tax profile. The FTO has directed the FBR to take immediate disciplinary and corrective action against all individuals involved in the breach. The gravity of the situation prompts the FTO to address not only the breach itself but also the lapses in the system’s integrity.
Furthermore, the FTO has called for an investigation into how the integrity of tax data was compromised despite the existence of an elaborate and dedicated setup of the Pakistan Revenue Automation Limited (PRAL). This move underscores the need for a comprehensive review of existing security measures to prevent such incidents in the future and protect the privacy and integrity of taxpayers’ information.
