Islamabad: The Federal Board of Revenue (FBR) has uncovered a significant fraud in which taxpayers illegally revised their previous wealth statements to include unexplained assets worth Rs. 9.41 billion. A criminal case under the Anti-Money Laundering Act, 2010 has been filed, with further investigations underway.

According to Press Information Department, the fraud was detected by the Directorate General of Intelligence and Investigation (Inland Revenue) through an analysis of the FBR’s database, supported by Pakistan Revenue Automation Limited (PRAL). This analysis revealed that 85 taxpayers revised their wealth statements for tax years 2014 to 2019 between March 2025 and June 2026, adding undeclared assets such as cash, physical gold, prize bonds, properties, and business capital.

The law prohibits such revisions. Under section 116(3) of the Income Tax Ordinance, 2001, a wealth statement cannot be revised after five years from the due date of the original return. All the revisions identified exceeded this time limit.

In one instance, the Directorate of Intelligence and Investigation (Inland Revenue) Lahore registered a case where a taxpayer revised his 2015 wealth statement in May 2026, adding Rs. 102.8 million in fictitious funds. These funds were carried forward to account for seven properties worth Rs. 64.41 million bought in 2026. The taxpayer failed to explain the source of these funds, with the tax evasion amounting to over Rs. 46 million.

The Regional Directorates of Intelligence and Investigation (Inland Revenue) have initiated 48 criminal inquiries across Pakistan, while other cases are being processed. The money laundering case targets the involved taxpayer and any accomplices, with additional cases underway to ensure accountability.

FBR has emphasized that the tax system cannot be used to legitimize unexplained wealth. Its data analytics will continue to detect such manipulations, and those involved will face legal consequences, including penalties and prosecution.