High-Earning Filers Beware: FBR Targets Under-Reported Tax Returns
Intensive measures would be taken against high-income tax filers who grossly under-report their income. This was announced by Chairman of the Federal Board of Revenue (FBR) Rashid Mahmood Langrial on a private TV show while announcing that the FBR was moving all resources at hand to target the top 4-5% of income earners who fail to pay the appropriate taxes.
Now, with the federal government looking to meet an ambitious tax target of Rs. 12.97 trillion for this fiscal year, the FBR is set to take tough measures in its enforcement strategy to tackle the issue of tax evasion finely.
Chairman FBR ruled that high-income filers will be taken to task as part of the new tax enforcement initiative.
Sources have reported recently that the FBR plans to put a cap on cash withdrawal from bank accounts of taxpayers at Rs. 30 million per annum. It has also planned that individuals earning over Rs. 10 million per annum would be restricted from buying cars. They would have to prove the sources of their income while buying property. People with earnings less than Rs. 10 million would also need to show proof of their incomes before making big purchases of cars, land, or stocks and mutual fund investments.
All of these steps indicate that FBR is attempting to bring tax compliance while also ensuring that all income earners pay their due share.
