Bringing 0.7 million persons into tax net: FBR to set up specialised monitoring unit

The Federal Board of Revenue (FBR) has decided to establish a specialised monitoring unit at the office of Directorate General of Strategic Planning and Statistics (SP&S) for bringing 0.7 million most rich people into the tax net with the help of National and Database Registration Authority (Nadra).
Sources told Business Recorder here on Saturday that Director General, SP&S, would establish the monitoring unit for effective utilisation of potential taxpayers' data through collaboration of Nadra and Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs). The monitoring unit would have the mandate to act as a central place in the FBR to co-ordinate with Nadra to expand the tax base.
When contacted, sources said that a joint team of FBR and Nadra officials may be constituted to explore possibilities for effective utilisation of data. The FBR will give priority to data which will enable the tax authorities to know about the expenses, expenditures and investments made by the rich people.
The FBR will seek all kinds of information about residential and commercial locations of potential persons. The data would also include information about assets, property and other transactions where computerised national identity card (CNICs) has been used by Pakistani nationals. The FBR will also take help of data compiled by the FBR for last many years for broadening the tax base, sources added.
The Nadra is expected to provide information about persons living in posh areas and owners of expensive properties to FBR. According to estimates, over 0.7 million potential persons could be brought into tax net with the help of Nadra.
In the past, the FBR had devised different database for broadening the tax-base. During the tenure of an ex-FBR member Income Tax Vakeel Ahmed Khan, a system known as Trekker was established at Lahore, and the system could detect and profile all motorcar owners and subscribers of cell and landline phones and commercial electricity, even land sale and purchase, to find out whether tax returns had been filed, or, whether the sales and purchases of billings were reflected in the returns. The system was closed in the past. Later, the Board had devised a new version of 'National Integrated Tax Information Trekker' know as "Nexus", which was required to be used for exchange of information on taxpayers registered sales tax, income tax and customs departments. The "Nexus" had several features including exchange of information among different tax agencies. It also contained updated information from various internal/external sources including National Tax Numbers (NTN), motor registration authority, tax return data, utility agencies, tax payment receipts, PTCL/mobile phone data and survey data.