FBR uncovers Rs9.41bn wealth-statement fraud, registers money-laundering case

Pakistan’s Federal Board of Revenue (FBR) has uncovered a fraud in which 85 taxpayers illegally revised old wealth statements to declare previously undeclared assets worth Rs9.41 billion, the tax authority said on Wednesday.

The FBR said it has registered a criminal case under the Anti-Money Laundering Act 2010 and is processing further cases, according to Dawn and the Associated Press of Pakistan.

The Directorate General of Intelligence and Investigation (Inland Revenue) detected the fraud through analysis of FBR data carried out with the support of Pakistan Revenue Automation Ltd (PRAL). It identified 85 taxpayers who, between March 2025 and June 2026, revised wealth statements for tax years 2014 to 2019, inserting cash, physical gold, prize bonds, properties and business capital that had never been declared before. Under the explanation to Section 116(3) of the Income Tax Ordinance 2001, a wealth statement cannot be revised more than five years after the due date of the original return; every revision was made well beyond that limit.

The flagship case was registered by the Directorate of Intelligence and Investigation (Inland Revenue) in Lahore: a taxpayer revised his tax-year 2015 statement in May 2026 to insert fictitious funds of Rs102.8 million, carried the amount forward through his wealth statements up to tax year 2025, and used it to account for seven properties worth Rs64.41 million bought in May and June 2026. When asked, he could not explain the source of the funds; the tax sought to be evaded in this case alone exceeds Rs46 million, Dawn reported.

Regional Directorates of Intelligence and Investigation (Inland Revenue) have launched 48 criminal inquiries across Pakistan, while proceedings in the remaining cases are still under way.