Living beyond means: FBR to send tax notices to 100 celebrities, notables

ISLAMABAD: The Federal Board of Revenue (FBR) has selected 100 celebrities/notables including some politicians, artists, players and others for sending tax notices who are living beyond their means.

The long arm of law will now be moved against them, The News has learnt. “On the directives of Prime Minister Imran Khan for launching crackdown against the influential and the rich, we have selected 100 celebrities/notables for sending them tax notices. All those notables who are living beyond their means will be brought in tax net in order to create deterrence for effective enforcement,” one top official of FBR disclosed to The News here on Wednesday.

Irrespective of political divide, the official said that the FBR’s long arm of law would move against those who are living luxurious lifestyle but contributing peanuts to the national kitty and there would be no element of victimisation against political opponents.

The names of some politicians belonging to Karachi, Lahore and Faisalabad have been included in the list of 100 celebrities for sending tax notices, the official added.

“The FBR gathered data from third party and other public sector utilities in order to ascertain their lifestyle. The FBR found huge discrepancies having massive difference in declared income and possessed income,” said the official.

Citing an example, the official mentioned one female artist and stated that she earned hefty amounts but declared peanuts so the FBR decided to send her tax notices after inserting her name in the list of 100 celebrities.

Last week, Prime Minister Imran Khan directed the FBR for launching crackdown against celebrities of different segments of the society after gathering solid information in order to create deterrence for effective enforcement. The FBR’s top management conveyed to field formations in clear tone that if they followed the law of the land, they would be backed but in case of violation of law they would not be protected.

In another ongoing initiative against high net worth individuals, the FBR so far sent out 6451 notices on the basis of available information related to rental income, properties and owning luxury vehicles of over 1800cc.

Now this strategy has been modified slightly and FBR’s Member Inland Revenue (IR) Operation Seema Shakil directed all Regional Taxpayer Offices (RTOs) in all over the country to select 20 biggest cases of their respective jurisdictions and ensured fast track enforcement.

“Out of 6451 tax notices, the FBR has so far obtained income tax returns from 2671 and generated demand of Rs2.165 billion out of which the recovered tax amount stood at Rs1.372 billion so far in the current fiscal year,” said the official.

The FBR official said that the PM was told that the collection of withholding tax decreased in the current fiscal year which was compensated through generation of tax demands and recovery of taxes both in shape of income tax and sales tax during the current fiscal year. The revenue effort on part of the tax collection machinery, the official said, started yielding positive results and pointed out that it came on the surface with time lag.

“The loopholes are being plugged and efforts will be made to go close to the desired target of Rs4,398 billion,” said the official and refused to share any exact figure and contended only as saying that all out efforts would be made to compensate revenue shortfall through revenue mobilisation efforts as much as possible in the remaining period of the ongoing financial year.