FBR uncovers Rs9.41bn wealth statement fraud, registers money laundering case
- Says taxpayer failed to explain source of funds when questioned
The FBR uncovered a Rs9.41 billion fraud where 85 taxpayers illegally revised wealth statements to declare unexplained assets, leading to criminal cases under anti-money laundering laws.
- Illegal revision of wealth statements
- Detection via FBR database analysis
- Criminal inquiries and prosecution
The Federal Board of Revenue (FBR) has uncovered a fraud involving the illegal revision of wealth statements to incorporate unexplained assets worth Rs9.41 billion, registering a criminal case under the Anti-Money Laundering Act, 2010.
The fraud was detected by the Directorate General of Intelligence and Investigation (Inland Revenue) through analysis of the FBR database with support from Pakistan Revenue Automation Limited (PRAL), according to a press release issued on Wednesday.
The analysis identified 85 taxpayers who, between March 2025 and June 2026, revised wealth statements for tax years 2014 to 2019 and added previously undeclared cash, physical gold, prize bonds, properties and business capital.
Under the explanation to Section 116(3) of the Income Tax Ordinance, 2001, a wealth statement cannot be revised after five years from the due date of the original return. FBR said all revisions identified in the fraud were made beyond the legally permitted period.
In one case registered by the Directorate of Intelligence and Investigation (Inland Revenue) Lahore, a taxpayer revised his wealth statement for tax year 2015 in May 2026 and inserted fictitious funds of Rs102.8 million.
The taxpayer subsequently carried the amount forward through wealth statements up to tax year 2025 and used it to account for seven properties worth Rs64.41 million purchased in May and June 2026.
The taxpayer failed to explain the source of the funds when questioned, while the tax sought to be evaded in the case exceeds Rs46 million, FBR said.
Regional Directorates of Intelligence and Investigation (Inland Revenue) have launched 48 criminal inquiries across Pakistan, while proceedings in the remaining cases are under process.
FBR said the money laundering case has been registered against the taxpayer and any abettors found involved, with further cases being processed.
The tax authority said its data analytics would continue to detect manipulation of the tax system and warned that those involved in concealing unexplained wealth would face penalties and prosecution.
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