FBR busts wealth statement fraud involving Rs9.4bn

October 01, 2026 (MLN): The Federal Board of Revenue (FBR) has uncovered a scheme in which 85 taxpayers illegally revised old wealth statements to absorb unexplained assets worth Rs9.41bn into their declared wealth, with a criminal case registered under the Anti-Money Laundering Act, 2010 and more being processed.

The Directorate General of Intelligence and Investigation (Inland Revenue) detected the scheme by analysing the FBR database with support from Pakistan Revenue Automation Limited (PRAL).

Between March 2025 and June 2026, the taxpayers amended wealth statements for tax years 2014 to 2019 and added cash, physical gold, prize bonds, properties and business capital that were never declared earlier, said a press release issued.

The revisions breach the law. The explanation to Section 116(3) of the Income Tax Ordinance, 2001 bars a wealth statement from being revised more than five years after the due date of the original return, and every revision identified fell well outside that window.

In a case registered by the Directorate of Intelligence and Investigation (Inland Revenue) Lahore, a taxpayer in the Lahore region revised his tax year 2015 wealth statement in May 2026 and inserted fictitious funds of Rs102.8mn.

He carried the amount forward through his wealth statements up to tax year 2025 and used it to justify seven properties worth Rs64.41mn, bought in May and June 2026. He could not explain the source of the funds when questioned.

The tax sought to be evaded in this case alone exceeds Rs46mn.

Regional Directorates of Intelligence and Investigation (Inland Revenue) have opened 48 criminal inquiries across the country, while proceedings in the remaining cases are under way.

The money laundering case names the taxpayer and any abettors found involved, and further cases are being prepared to bring all those behind the scheme to justice.

The FBR said the tax system would not be allowed to serve as a channel for legitimising unexplained wealth. It said its data analytics would keep tracking such manipulation, and that those involved would face penalties and prosecution.

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