Bringing HNWIs into tax net: NADRA provides 3,500 updated profiles of non-filers to FBR

ISLAMABAD: The National Database and Registration Authority (Nadra) Wednesday provided revised samples of 3,000 to 3,500 profiles of non-filers to the Federal Board of Revenue (FBR) for bringing high net worth individuals into the tax net.

Sources told Business Recorder that the FBR will analyse the updated samples provided by the Nadra - based on the observations of the FBR. The FBR will also verify the authenticity of the data provided by the Nadra.

“The data has been corrected and updated by the Nadra and now the FBR will check these 3,000 to 3,500 updated profiles of non-filers,” they added.

During the last visit of Finance Minister Miftah Ismail to the FBR, it was decided that the Nadra would further improve the data and communicate to the FBR for the purpose of broadening the tax base.

The Nadra chairman along with his team briefed the finance minister on the taxpayers’ profiles for expanding the tax net and registration of non-filers.

The Nadra has reviewed the data and submitted the updated profiles of the non-filers to the FBR for further analysis. The FBR asked the authority to rectify the mistakes in the data and provide the updated profiles to the FBR.

FBR estimates potential Rs3trn tax gap

The FBR and the Nadra are re-working on the data for correction of the profiles of non-filers before the launch of the scheme to ensure the filing of income tax returns by un-documented persons in coming September 2022.

Once the FBR is satisfied with the quality of the data, the tax department would launch the Web-Portal for non-filers of income tax returns. The FBR has asked the Nadra to further refine the data so that the citizens cannot question the authenticity of the profiles.

The FBR will upload 3.5 million Nadra profiles of non-filers on the new portal. After an advertisement campaign, the non-filers would be encouraged to file returns in September based on tax profiles shared by the authority.

In the past, the FBR had provided third-party data of 14 million people to the Nadra. The authority has mixed its own data with the FBR’s third-party records and finally developed profiles of non-filers. The Nadra has identified 3.5 million non-filers by applying three different methodologies using Artificial Intelligence (AI).

The FBR will upload the profiles on a new portal to be launched for the general public.

The FBR will give some time period to the non-filers to respond to the profiles available on the new portal. The FBR will also launch a massive media campaign in this regard. The non-filers would be allowed to file returns free of cost and the FBR will pay Rs5,000 to the tax lawyers for filing of each income tax return of non-filers. Non-filers can come forward and clear their position after analysing their data on the FBR’s web portal.

The non-compliant non-filers would face consequences of disabling of their mobile phones or disconnections of their electricity and gas connections, etc.

Copyright Business Recorder, 2022