FBR uncovers alleged Rs9.4 billion tax fraud through wealth statement revisions

The Federal Board of Revenue (FBR) has uncovered an alleged tax fraud involving the declaration of previously undisclosed assets worth approximately Rs9.41 billion through unauthorized changes to old wealth statements.

The Federal Board of Revenue (FBR) has uncovered an alleged tax fraud involving the declaration of previously undisclosed assets worth approximately Rs9.41 billion through unauthorized changes to old wealth statements.

According to an official FBR statement taxpayers allegedly used revisions to their previous wealth declarations to introduce assets that had not been reported in their original tax records. Authorities have registered a criminal case under the Anti-Money Laundering Act, 2010 while additional cases are reportedly being prepared.

The investigation was conducted by the FBR’s Directorate General of Intelligence and Investigation (Inland Revenue). Officials examined data from the tax authority’s database with technical assistance from Pakistan Revenue Automation Limited (PRAL).

The review identified 85 taxpayers who reportedly modified wealth statements between March 2025 and June 2026 for tax years ranging from 2014 to 2019. The amended declarations included assets such as cash holdings, gold, prize bonds, real estate and business investments that had not appeared in their earlier statements.

The FBR said such revisions are restricted by law. Under the explanation attached to Section 116(3) of the Income Tax Ordinance, 2001 taxpayers cannot revise a wealth statement once five years have passed from the due date for filing the relevant original return.

Officials said the revisions identified during the investigation were made after this statutory period had expired.

One case being investigated in Lahore involves a taxpayer who amended a wealth statement for tax year 2015 in May 2026. Investigators allege that the taxpayer added funds of around Rs102.8 million that could not be substantiated.

The amount was subsequently carried into wealth declarations through tax year 2025. Investigators said the funds were later used in connection with the purchase of seven properties valued at approximately Rs64.41 million during May and June 2026.

According to the FBR the taxpayer was unable to provide an explanation for the source of the funds. The potential tax evasion in this individual case has been estimated at more than Rs46 million.

Regional intelligence and investigation directorates have reportedly initiated 48 criminal inquiries in different parts of the country. Investigations into the remaining cases are also underway.

The FBR said money-laundering proceedings have been initiated against the taxpayer in the Lahore case as well as against any individuals found to have assisted in the alleged scheme.

The tax authority has reiterated that its enforcement efforts will target attempts to use the tax system to legitimize or conceal unexplained wealth.