ISLAMABAD: The Federal Board of Revenue (FBR) has decided to impose penalties on taxpayers who provide incorrect information in income tax returns, conceal assets or tamper with financial records, according to sources.
Sources said the FBR had access to data on properties and assets owned by tax filers across the country, which would be used to verify the information declared in their income tax returns.
The FBR will automatically compare information provided in tax returns with its existing database to identify discrepancies. Artificial intelligence (AI) will also be used to verify information and detect possible irregularities, sources added.
According to sources, taxpayers found concealing assets or manipulating records could face heavy penalties. Salaried individuals who submit incorrect income tax returns could face penalties of up to 75 per cent of their salary, sources said.
An additional fine of Rs1,000 per day could also be imposed if a penalty is not paid within the prescribed period, they added.
Tax filers have been given an opportunity to correct errors in their income tax returns before October 15. Sources urged taxpayers to review the information declared in their returns, including income and asset details, and make any necessary corrections within the stipulated time.
The development comes as the FBR expands the use of automated systems and artificial intelligence to scrutinise tax returns and identify discrepancies between declared information and available records. In a report published on October 7, Dawn said the FBR had proposed rules for electronic scrutiny of individual tax returns, allowing its automated system to flag potential factual and legal errors before further action.
