FBR busts wealth statement fraud involving Rs9.4bn

According to Mettis Global, the Federal Board of Revenue has exposed a scheme in which 85 taxpayers amended earlier wealth statements so that Rs9.41bn in unexplained assets appeared as declared wealth. A criminal complaint has been lodged under the Anti-Money Laundering Act, 2010, and additional cases are in preparation. The Directorate General of Intelligence and Investigation (Inland Revenue) uncovered the activity by mining the FBR database with help from Pakistan Revenue Automation Limited.

Between March 2025 and June 2026, the taxpayers amended their statements covering the 2014 to 2019 tax years, inserting cash, gold, prize bonds, property and business capital that had never been reported before. The legal provision in Section 116(3) of the Income Tax Ordinance, 2001 disallows changes to a wealth statement once five years have passed from the original filing deadline, and every flagged revision breached it. One Lahore case involved Rs102.8mn of fictitious funds added to a 2015 statement, which were then used to justify seven properties worth Rs64.41mn.

Regional units have launched 48 criminal inquiries nationwide, and work continues on the other files. The FBR stated that the tax system will not be used to legitimise unexplained wealth, that its analytics will keep tracking such manipulation, and that those involved will face penalties and prosecution.