The Federal Board of Revenue has established seven Regional Lifestyle Monitoring Teams with the intent to scrutinize individuals whose social media profiles reflect lavish lifestyles, yet pay very meager amounts in taxes.
According to The News, these seven teams comprise 36 officers and support staff. They are mandated to cross-check whether a person’s social media activities reflect in his or her income tax records. The teams will operate in Karachi, Lahore, Islamabad, Peshawar, Multan, Faisalabad, and Hyderabad.
According to the FBR, the teams will gather information on heavy spenders first. Prior to taking any action, they will have to seek prior approval from the Director General of I&I IRS, Islamabad.
The Lifestyle Monitoring Cell will track Facebook, Instagram, TikTok, X (Twitter), YouTube, and LinkedIn, among other social media platforms. It would also use open online sources to track lavish spends of those who may not be paying their due share of taxes.
The plan is targeted at those netizens-made-influencers, celebrities, business owners, and professionals who appear wealthy online but show low or no income in tax records.
The FBR, after identifying them, will create their digital profiles to compare their spending with their declared income. In case of huge gaps, the department will prepare Preliminary Information Reports (PIROs) for further investigation under the Income Tax Ordinance, 2001, and Sales Tax Act, 1990.
With this, the FBR has tried to prevent tax evasion and encourage honest tax-paying in today’s digital era when many display their lives on social media.
