biometrics data driven. Based on data analytics, he is writing a strategy paper to combat waste, abuse and tax fraud for Russian Federation.
“Tears started rolling on my cheeks when I went to address this high-powered forum. Only if we could have helped our beloved country in combating tax evasion,” Tariq said lamenting the indifferent behaviour of successive governments towards this issue posing serious challenges to the integrity of Pakistan.
While in Nadra, Tariq and his team discovered 3.5 million potential taxpayers using predictive model of data analytics. They searched out frequent international travellers (1.61 million), multiple bank account holders (584730), residents of posh areas (56421), well-paid professionals, vehicle owners (19149), residents receiving inflated utility bills (66736) and those having multiple weapon licenses (13201).
Out of them, 2.37 million were not registered for National Tax Numbers (NTNs) to begin with and remaining 1.22 million had NTNs but were non-filers.
Included among them was a famous singer who went abroad 60 times in five-year, had 26 bank accounts, lived in DHA Lahore but was a non-filer. As word spread about this status through social media, he filed tax return, however, declared annual income of Rs. 850000 only.
Another individual who is closely related with a well-placed tax official was also enlisted. He contested 2013 elections; was a frequent foreign traveller and resident of Islamabad’s F-10 sector but used to declare zero taxable income.
A famous spiritual leader who charters a couple of planes every year for flying his disciple-turned-clients for Umra was found having travelled not only to Saudi Arabia but to different western countries 38 times, was operating five bank accounts and three vehicles registered in his name but out of tax net.
This project was completed during the PPP government. Nadra found itself in an awkward position when a doctor from Lahore disputed the information about him through the then finance minister who happened to be his close friend. Upon inquiry, the information NADRA earlier shared about him turned out to be correct, nevertheless, no action was taken.
With almost four-year down the road, the data is still unutilized. Tariq wanted FBR charged a slight percentage of the tax recovery as a fee to be used as a revenue source for Nadra that tax authorities refused to pay.
Another factor resulting in the impasse is Nadra’s mistrust. Background conversation with Nadra officials reveal they fear misuse of data by FBR without credible assurance as tax inspectors can use it for blackmailing instead of revenue collection.
While Tariq is abroad doing the same work for foreign governments, his team is still in Nadra and so is the data. Only thing missing is the lack of will on part of the FBR to use this data for a crackdown on tax evaders.