Documented regime: wealthy persons to be registered first: FBR

The wealthy undocumented persons in posh areas would be registered first by the Federal Board of Revenue for giving a clear message to all potential persons to voluntarily come into the documented regime. Sources told Business Recorder here on Wednesday that the FBR did not want to indulge in the number game for broadening the tax-base.
The targeted approach would help in hunting the wealthy people living in posh bungalows with foreign bank accounts and luxurious vehicles. In this regard, the FBR has prioritised the persons to be brought into the tax net, using authentic available data. Even 50,000 to 100,000 wealthiest, but undocumented people initially brought into the tax net, would create deterrence for others to voluntarily file their income tax returns. This would compel potential persons to come forward and opt for the documented regime.
The documentation of some very rich people would automatically bring the medium-size units into the tax net. Sources said that the FBR will not tolerate any kind of pressure from any quarter during this exercise to make sure that nobody is above the law.
According to sources, banks account information would also help the tax department to seek the source of investment of wealthy people in purchase of assets and vehicles etc. If a person has substantial amount of money in bank and living in posh areas, but not acquired any National Tax Number (NTN), the department can ask such persons to come into the tax net. Based on the substantial information available with the tax department, the FBR has launched the exercise for going after the elite class operating out of the tax net.
It would be a big success for the tax department to document the rich people to force others to file their income tax returns. The focus of the whole exercise is to target influential people is to make some visible cases demonstrating the will of the government in broadening the tax-base, sources added.