FBR cybersecurity failure leads to billions in tax fraud

KARACHI: The Federal Tax Ombudsman (FTO) on Tuesday revealed that the cyber security of Federal Board of Revenue (FBR) has failed, resulting in a tax fraud of Rs 14.66 billion, ARY News reported.

The FTO has revealed that taxpayers’ data was compromised in a cyberattack, leading to a tax fraud of Rs 14.66 billion due to the failure of the Federal Board of Revenue’s (FBR) cybersecurity systems.

The institution further disclosed that cybercriminals exploited vulnerabilities in FBR’s security, conducting fake transactions worth Rs 81.43 billion.

These fraudulent transactions resulted in a significant tax loss of Rs 14.66 billion.

Last month, it was reported that the FBR is facing challenges in achieving its monthly targets, with only 43% of the target achieved in the first 18 days of the month.

As per details, the FBR headquarters has issued a letter to the Chief Commissioner of Corporate Regional Tax Office, mentioning concerns over the slow pace of revenue collection.

The letter mentioned the need to enhance efforts to achieve targets, particularly in the first quarter of the financial year.

The FBR has also directed the Corporate Regional Tax Office to focus on recovering outstanding taxes and ensuring timely filing of monthly sales tax returns.

Additionally, the FBR has stressed the importance of monitoring withholding agents to prevent tax evasion. Overall, the FBR is urging its offices to intensify their efforts to meet the revenue targets and address the challenges in tax collection.