'Nexus' system being launched to broaden tax-base

The 'Nexus' computer system being used to broaden the tax-base has developed the capacity to automatically generate notices to the taxpayers declaring less income/turnover on the basis of data verification from external sources.
Sources told Business Recorder on Monday that the 'Nexus' is a computerised system, which obtains data from various government organisations to bring potential persons into the tax-net. In a recent meeting on 'Nexus', it has been decided to launch the system country-wide for increasing the number of taxpayers.
A system has been developed to issue computerised notices on the basis of data analysis by the 'Nexus' system. The meeting also decided that the people within the undocumented potential sectors would be brought into the tax-net through the system.
The Federal Board of Revenue (FBR) would incorporate withholding tax and federal excise duty (FED) data and information on vehicle's sales and capital value tax (CVT) on immovable property in 'Nexus' programme to discover new taxpayers and ascertain actual income of existing registered persons.
The board has finalised a plan to implement the 'Nexus' system at all the Large Taxpayer Units (LTUs) and the Regional Tax Offices (RTOs) to verify taxpayers data from external sources to broaden the tax-base.
According to sources, the withholding tax data would help the department ascertain the actual transactions being carried out by the importers and the withholding agents with the help of bulk data available with the 'Nexus'.
The board had incorporated data from external sources like banks, property record, utilities bills, and motor vehicles registration to discover new taxpayers and ascertain actual income of existing registered persons.
The system would also examine the impact of exemptions on a specific sector like automobile manufacturers over the last three years and its correlation to the import of automobiles. It would give an in-depth analysis about the contribution of a specific sector in taxes against its share to GDP. The impact of changes in tax rates on revenue collection in a specific sector would also be analysed.
The 'Nexus' project is now in a position to start analysing data of certain percentage of taxpayer's population for which data cleansing has been done.
It has the capability of providing a complete analysis of federal taxes paid by the taxpayers. The project has started analysing data of certain percentage of taxpayers' population for which the data cleansing has been done by the FBR.