The Federal Board of Revenue (FBR) has announced one of the largest audit operations in Pakistan’s history, targeting millions of income tax returns to identify undeclared income, inaccurate filings, and major discrepancies. 

According to officials, the FBR will review 7 to 10 million tax returns in the first phase, covering both salaried individuals and corporate taxpayers. High-profile taxpayers, including CEOs, major investors, business owners, and government officers are also expected to come under strict scrutiny. 

Taxpayers With Major Income Drops to Be Flagged 

Officials have confirmed that any taxpayer reporting 25% less taxable income compared to last year will be thoroughly examined. The FBR aims to curb the growing trend of underreporting income and improve compliance across Pakistan. 

AI-Powered System to Detect Irregularities 

To ensure transparency and minimize manual errors, the FBR will utilize advanced data analysis tools and Artificial Intelligence (AI). These systems will automatically detect suspicious patterns, false declarations, and mismatched financial data, making the audit process faster and more reliable. 

This digital transformation aligns with FBR’s broader strategy to modernize Pakistan’s tax system and enhance revenue collection. 

Strict Penalties for False Returns 

The FBR has issued a clear warning: 
Taxpayers filing false, incomplete, or misleading returns may face heavy penalties, fines, and legal action. The department emphasized that undeclared income and false reporting will be dealt with strictly under current tax laws. 

2025 Audit Plan Approved 

The audit plan for 2025 has already been finalized. Projections suggest that by November 30, more than seven million tax returns are expected to be reviewed. The FBR chairman also highlighted an ambitious target of auditing up to 80% of all income tax returns filed this year. 

A Historic Step Toward Transparency 

This nationwide compliance drive is being viewed as one of the largest tax enforcement initiatives in Pakistan. It is expected to: 

Support Pakistan’s economic stability 

As tax reforms continue to evolve, taxpayers are strongly advised to submit accurate, complete, and verifiable information in their income tax returns to avoid penalties under FBR’s enhanced audit framework.