ISLAMABAD: The Federal Board of Revenue has decided to tighten noose around ‘big fishes’ who have made huge investments in luxury cars and failed to mention or disclose their actual income or source of investment in the income tax returns.
In the first phase of the countrywide campaign, the individuals having made huge investment in luxurious vehicles and never filed their income tax returns will be registered. While in the second phase, tax will be recovered from those individual investors who have filed their returns but conceal their income.
According to details, the FBR is embarking on a targeted exercise to bust, register and recover tax individuals having made huge investments in various sectors in the recent past. The Directorate of Intelligence and Investigation-IR has been tasked with detecting and investigating ‘unregistered and hidden’ investments in luxury cars and real estate.
Reportedly, the Intelligence and Investigation-IR Directorate General has already collected and processed crucial data related to the purchase all such luxury cars over the past three-four years. The data is now being utilised to assess the real quantum of income in these cases and tax it accordingly. In the first phase, the Directorate General is pursuing the cases of those luxury car owners who have not filed their tax returns despite making such huge investments which sheer violation of the income tax laws. The DG has already, reportedly, started issuing notices in such cases. In the second phase, the department will clampdown on investors having filed their tax returns without declaring income proportionate to the investments made in the luxury cars.
It has been learnt that through the exercise, the FBR wants to dispel the impression that tax burden in the country is generally carried by the middle and low income groups whereas individuals with huge consumption and investment either remain outside the tax net or pay meagre tax. It has also been learnt that the FBR Intelligence has also collected discreet information about investments in large real estate projects and action in the cases of investors will be launched shortly.
