Falling in highest brackets of tax slabs: FBR compiles profiles of 20,000 undocumented persons

The Federal Board of Revenue has compiled detailed profiles of around 20,000 undocumented persons, falling in the highest brackets of tax slabs and face harsh punishments including penalty, prosecution and attachment of bank accounts and properties in cases of no reply to the notices issued for filing of returns and wealth statements.
Sources told Business Recorder here on Wednesday that the FBR has developed profiles of the wealthy persons with complete information and evidence about their foreign travels, foreign bank accounts, property transactions and new vehicles purchases etc. The FBR is confident that the persons would be covered under the highest brackets of tax slabs liable to pay maximum tax.
The FBR has clearly given message to wealthy persons to act sensibly and voluntarily file their returns to avoid prosecution, penalties and humiliation in the general public. Such un-documented persons may also face imprisonment. The income tax assessments of non-compliant persons would be completed by June 2011.
The profiles of the undocumented persons further disclose the total number of foreign visits during the Tax Year 2010, reflecting credibility of the data. The information about the number of days of stay abroad is also available with the tax department. The profiles of undocumented persons revealed some astonishing facts that many wealthy persons have travelled a number of countries during Tax Year 2010, but they have not obtained any National Tax Number nor filed their income tax returns.
The profiles of undocumented persons give names and the CNICs of persons, who have purchased movable and immovable properties and frequently travelled abroad etc. Interestingly, the FBR data cannot specifically pinpoint whether the undocumented person is a politician, government official, bureaucrat or any influential or powerful personality until notice has been served on him. The CNIC does hot specify the profession of the concerned person, but notice would be served to all potential persons, whose profiles have been finalised by the FBR.
The quality of the data is evident from the fact that all foreign travels and new vehicles have been purchased during Tax Year 2010. This is the latest information compiled on the basis of authentic data pertaining to the Tax Year 2010. In the presence of such documentary evidence, the wealthy person has the only option to file return and wealth statement.
Otherwise, the FBR has principally agreed to invoke all kinds of harsh provisions against big non-filers to give them exemplary punishments. Sources said that the wealthy persons cannot escape, as the FBR has also obtained present and permanent addresses from Nadra and all other relevant information for evidence to launch legal action against the un-documented persons. It is expected that such persons would fall into the highest tax slabs in view of their huge amount of earnings.
Sharing few cases out of 20,000 profiles of undocumented persons, sources said that the FBR has developed a profile of an Islamabad-based woman, who has paid Rs 6 lakh for registration of vehicle. She also has maintained 2-3 bank accounts. Her present and permanent addresses are also available to the tax department. Thus, she has to comply with the tax laws and file return. Otherwise legal action would be initiated against her.
Giving another example, sources said that a person from Quetta has sent her son to Lahore for studying in a most expensive college. He has also purchased a new vehicle. He also visited abroad for 108 days. In another case, the utility bill of a person is around Rs 1.6 million and he remained 29 days out of the country. He is also maintaining five bank accounts in different banks.
A Islamabad-based person is maintaining four bank accounts. He visited abroad twice and remained out of the country for 117 days. A woman from Sector G-10/3 Islamabad has also property in Nazimabad, Karachi. She is maintaining two different bank accounts. Similar kind of complete profiles of thousands of un-documented persons were available with the FBR.
Sources said that the FBR will impose penalty equivalent to the amount of tax on the un-documented persons, who would not voluntarily come into the tax net. It has been advised that the wealthy persons should voluntarily file their income tax returns to avoid harsh punishments including attachment of their properties, imposition of maximum tax and prosecution.