FBR will ‘start’ a major audit of income tax filings this year.

FBR – (Special Correspondent / Web Desk) – The Federal Board of Revenue (FBR) plans to perform a historic and comprehensive audit of income tax returns this year.
According to sources who spoke with ARY News, a large-scale audit of income tax returns has been approved, with seven to eight million returns expected to be scrutinized by an automated digital system during the current fiscal year.
The audit will be conducted by around 8,000 Inland Revenue officers and officials, as well as 4,000 auditors.
According to sources, Microsoft Excel filters and formulas will be used to spot abnormalities in income tax returns, while artificial intelligence and other digital tools will help with audit operations.

The audit will be carried out in three phases. In the first phase, commercial and industrial income tax returns will be reviewed. The second phase will cover registered companies, including single-owner firms. In the third phase, the audit will extend to individual taxpayers and salaried persons.

Sources added that strict action will be taken against those who provide false information in their tax returns. Taxpayers showing concealed wealth or income on social media inconsistent with their declared returns will also face action.

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Notices will be issued for hiding assets, holding benami (anonymous) wealth, or declaring assets under another person’s name, the sources said.

The audit will assess returns from eight different analytical angles, the sources noted, adding that business entities showing lower income tax compared to the previous year will be prioritized for scrutiny.