ISLAMABAD: Serious gaps in assessing concealed assets by Federal Board of Revenue (FBR) officers at the Regional Tax Offices (RTOs) in Lahore and Islamabad have led to a revenue loss of Rs930.08 million, according to the Auditor General of Pakistan’s (AGP) 2023–24 report.
The audit reviewed tax records of 81 taxpayers linked to construction activities in Islamabad Capital Territory (ICT) and Lahore. Of these, 79 individuals purchased properties but neither filed income tax returns nor explained the sources of their investments. Two others under-declared their sales and paid less tax.
The AGP noted that assessing officers were required to enforce return filing and evaluate concealed or undisclosed assets, but they failed to act despite clear legal obligations. Audit observations made between March and May 2024 went unanswered by the department until the report’s finalization.
The report highlights that both buyers and sellers of immovable property must document and declare fair market values, while contractors are required to report completed construction areas for taxation. However, the department did not enforce these provisions.
Citing Section 111 of the Income Tax Ordinance, 2001, the AGP emphasized that unexplained investments or assets become taxable. The concerned officers overlooked these rules, resulting in underassessment of concealed properties and significant loss to the national exchequer.
