Powerful industrialists, lawyers to be probed over tax returns

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to launch an investigation into the income tax records of country’s powerful segment, including industrialists and lawyers, ARY News reported on Wednesday, citing sources.

The decision was taken as negotiations between International Monetary Fund (IMF) technical team and Task Force on tax and FBR reforms were underway.

IMF technical experts were collaborating with FBR tax officials, engaging in extensive discussions and analysis based on data from FBR subsidiary PRAL.

Sources told ARY News that the Board would probe the income tax records of country’s powerful segment and was actively collecting data on members associated with powerful entities such as industrialists, lawyers, and doctors associations.

The investigation involves scrutinising identity card numbers and verifying mobile numbers of members within these major associations.

The income tax probe aims to leverage data from Pakistan Revenue Automation Ltd (PRAL) and National Database and Registration Authority (NADRA) for an in-depth examination, in a bid to bring the powerful segment into the tax net.

Read More: IMF tax experts’ team reaches Pakistan

It is pertinent to mention here that a team of the International Monetary Fund (IMF) reached Pakistan two days earlier to consult over tax net and to enhance tax revenue.

Sources claimed that the delegation would suggest measures to the FBR for amendments in the tax policy. The FBR and the IMF experts would jointly prepare the basic structure for introducing the scheme to retailers.

Read more: ‘Pakistan to get $1.5b quick financial assistance after IMF board approval’

Earlier it emerged that the the IMF executive board is likely to approve the staff-level agreement with Pakistan on December 07.

The IMF executive board meeting will likely be held on December 7 and is expected to consider Pakistan’s case in the meeting.

Sources said that after the approval from IMF’s Executive Board around US$700 million will be available to Pakistan, bringing total disbursements under the program to almost US$1.9 billion.