The Federal Board of Revenue (FBR) has detected an alleged tax fraud involving Rs. 9.41 billion in assets that taxpayers added to old wealth statements, with a money laundering case registered under the Anti-Money Laundering Act, 2010.
The case was identified by the Directorate General of Intelligence and Investigation (Inland Revenue) through an analysis of FBR’s tax database conducted with assistance from Pakistan Revenue Automation Limited (PRAL).
The review found 85 taxpayers who changed wealth statements between March 2025 and June 2026 for tax years 2014 to 2019. The revised statements included cash, gold, prize bonds, properties and business capital that had not appeared in their earlier declarations.
FBR said the changes were made beyond the legally permitted period. Under the explanation to Section 116(3) of the Income Tax Ordinance, 2001, taxpayers cannot revise a wealth statement after five years from the due date of the original return.
One case investigated by the Lahore Directorate of Intelligence and Investigation involved a taxpayer who changed a tax year 2015 wealth statement in May 2026.
The taxpayer added Rs. 102.8 million in funds to the statement and subsequently carried the amount forward in wealth statements until tax year 2025.
The amount was then used to explain the purchase of seven properties worth Rs. 64.41 million in May and June 2026. FBR said the taxpayer failed to provide an explanation for the source of the funds.
The alleged tax evasion in that case is estimated at more than Rs. 46 million.
FBR’s regional intelligence and investigation directorates have opened 48 criminal inquiries across Pakistan in connection with the cases. Action in the remaining cases is also underway.
A money laundering case has been registered against the taxpayer in the Lahore case, along with any persons found to have assisted in the alleged scheme.
FBR said it would continue using data analysis to detect attempts to alter historical wealth records and introduce unexplained assets into the tax system. It added that taxpayers found involved could face penalties and criminal prosecution.
