Wealth statement format surreptitiously altered: FTO orders probe against FBR

ISLAMABAD: Federal Tax Ombudsman Dr. Asif Jah has ordered an investigation against the Federal Board of Revenue (FBR) for secretly altering the Wealth Statement format for Tax Year 2025 in the last week of September, just days before the filing deadline of September 30, 2025

It has been revealed that FBR silently inserted a new column titled “Estimated Current Market Value” in the wealth statement template, compelling taxpayers to provide subjective valuations of their assets.

Reliable sources confirmed that on a public interest complaint filed by Lahore-based tax lawyer Waheed Shahzad Butt, the FTO has summoned the Secretary Revenue Division, Member (Operations-IR), Member (Policy), Member (Legal), and DG (IT & DT) of the FBR for a hearing on Monday, September 29, 2025. The officials have been directed to appear along with para-wise comments on the issue.

Meanwhile, the Pakistan Tax Bar Association (PTBA) has urged the Federal Minister for Finance to immediately intervene in the affairs of the Federal Board of Revenue (FBR) owing to its persistent negligence in maintaining the electronic tax system in an error-free manner.

Muhammad Ahsan Malik, a real estate expert, told Business Recorder that the FBR had repeatedly committed not to ask for this information from the general public in the presence of all declarations of immovable properties. Unfortunately, tax authorities violated their commitment and made sudden changes in the wealth statement portal. The FBR should first publicly disclose the real market value of assets held by parliamentarians, bureaucrats, and politicians, and then ask this information from the general public, he added.

When contacted, Waheed Shahzad told this correspondent that FBR’s move is a “blunt violation of law,” disregarding the clear provisions of Sections 114, 115, and 116 of the Income Tax Ordinance, 2001, read with Rule 73 of the Income Tax Rules, 2002.

The requirement to furnish a subjective estimated current market value is arbitrary and unreasonable. It compels taxpayers to guess, with no objective basis, the value of their assets, thereby exposing them to potential harassment, litigation, and unjustifiable demands from FBR officials,” Waheed remarked.

He further asserted that there is no statutory provision obligating taxpayers to declare the estimated current market value of assets in the wealth statement. This patently illegal step is a clear departure from established practice, lacks bona fide reasons, and will inevitably lead to futile and avoidable litigation in courts. The FTO’s office is expected to conduct a detailed investigation into the matter and recommend appropriate action against the FBR officials responsible for this alleged maladministration to play with the statutory wealth statement form in the last week of September 2025, Waheed added.

The PTBA seeks finance minister’s intervention over FBR’s negligence in Iris system:

In a strongly-worded representation, the PTBA highlighted that the recent addition to the IRIS tax system now requires taxpayers to mention the market value of their moveable and immovable assets, creating unnecessary duplication, as details of immovable property are already available in the “Capital Asset” tab of the income tax return.

The PTBA has questioned the Finance Minister on several critical issues:

• Why were income tax returns notified as late as 18th August, 2025, leaving taxpayers with insufficient time?

• Why is the complete withholding tax data still not available on the MIS portal?

• Why was the IRIS portal abruptly shut down for five days without any prior intimation or public notice?

• Why is the self-populated information in tax returns incorrect, placing additional compliance burden on taxpayers?

• Why do sessions keep timing out on the IRIS portal, making filing nearly impossible?

• Why was a new tab titled “Estimated Current Market Value” secretly added on the 23rd of September, 2025, in the dead of night, despite thousands of returns already filed and many others pending at the final stage?

• Why are AOPs unable to adjust tax under Section 235 of the Income Tax Ordinance, 2001?

• Why is an AOP’s exempt share still being subjected to surcharge under the portal’s mechanism?

According to PTBA, such inefficiencies reflect poorly on FBR’s credibility and disrupt the smooth filing of returns at a crucial time when the deadline is fast approaching. The PTBA stressed that these technical lapses not only cause harassment for taxpayers but also undermine voluntary compliance.

The PTBA has called upon the Finance Minister to take urgent corrective measures, ensure accountability of FBR’s IT wing, and direct immediate rectification of the IRIS system to protect taxpayers from undue hardships.

Copyright Business Recorder, 2025