Karachi, September 9, 2024 – As the deadline for filing income tax returns for the tax year 2024 approaches, the growing presence of unverified tax practitioners on social media platforms poses a significant threat to taxpayers’ data security.
Many of these practitioners offer discounted packages for return filing services, attracting individuals seeking quick and cost-effective solutions to meet their tax obligations.
The Federal Board of Revenue (FBR) has set September 30, 2024, as the deadline for filing annual income tax returns for salaried individuals, Associations of Persons (AOPs), business professionals, and corporate entities with special tax years. The return forms require sensitive information from taxpayers, including details about their annual income, assets, and liabilities, making the safeguarding of such data critical.
While authorized tax practitioners registered with official tax bars are held accountable for ensuring the confidentiality and security of taxpayers’ information, a rising number of unregistered practitioners on social media platforms are offering their services at unusually low rates. These practitioners often promise to help taxpayers meet the approaching deadline but may lack the credentials or legal standing to handle sensitive financial data securely.
When asked about these concerning practices, senior FBR officials advised taxpayers to avoid engaging with unverified practitioners. Instead, they urged the public to use the simplified methods provided by the FBR for filing returns. The FBR offers an online tax filing system that is designed to streamline the process for individuals and businesses while ensuring data security.
For more complex tax calculations, FBR officials recommended that taxpayers only consult licensed tax practitioners who are officially registered with recognized tax bars in Pakistan. These practitioners are legally bound to maintain the confidentiality of taxpayer information and are subject to oversight by regulatory bodies, ensuring a higher level of trust and professionalism.
Additionally, tax officials emphasized that taxpayers should never share sensitive information, such as bank account details, with unauthorized individuals. The risk of data breaches and identity theft is significantly higher when dealing with unregistered practitioners, who may exploit such information for fraudulent purposes.
The mushrooming of unverified practitioners offering cut-rate services reflects the urgency many taxpayers feel as the filing deadline nears. However, experts caution that entrusting sensitive financial information to such individuals could lead to severe consequences, including data theft and financial fraud.
As the FBR continues to work on improving its tax filing infrastructure, the agency remains vigilant in warning taxpayers to exercise caution. By adhering to official channels and working with registered professionals, taxpayers can ensure the security of their information while fulfilling their legal obligations.