FBR obtains tax defaulters’ banking record from Nadra

KARACHI: In a major breakthrough, the Federal Board of Revenue (FBR) has succeeded in obtaining details of around 1,000 big tax defaulters from the National Database Registration Authority (NADRA) to take action against them under income tax laws, official sources said on Thursday.
The sources said NADRA provided the details of bank branches where the defaulters have accounts.
They said the FBR will now get the details from various banks on the basis computerised national identity card numbers.
The sources said the tax authorities found several persons with multiple accounts in various banks, but they were either paying a nominal tax or nothing.
The sources said the Directorate of Broadening of Tax Base (BTB) started a drive to identify potential taxpayers.
The BTB directorate identified the big defaulters through scrutiny of data received form motor vehicle registration authorities, electricity supply and distribution companies (commercial and industrial connections), mobile phone companies and business associations and details of immovable properties from Defence Housing Authority and construction companies.
The efforts of the directorate resulted in significant rise in filing of income tax returns.
The FBR has so far received around 975,000 income tax returns for the tax year 2014 out of which around 135,000 returns were due to the efforts of the BTB and policy measures adopted by the FBR.
The sources said the BTB directorate issued notices to a gems and jewellery association for sharing details of its members. The association has around 40,000 members, but less than 7,000 of them are return filers.
The directorate is also targeting untaxed sectors in this fiscal year, including doctors, lawyers, architects, engineers, fashion designers, land developers and interior decorators.
The sources said Pakistan Engineering Council (PEC), Pakistan Sugar Mills Association and All Pakistan Cement Manufacturers Association were also asked to share their members’ information.
The tax department sought details of dealers and distributors from beverage companies.
The directorate has received partial information from PEC and details of members belonging to Institute of Chartered Accountants of Pakistan and Institute of Cost and Management Accountants of Pakistan.
The sources said some entities are not paying heed to the repeated reminder by the directorate.
The FBR set up the BTB directorate to increase tax compliance and broaden the tax base.
There are 3.6 million national tax number holders in Pakistan that has population of around 200 million.