Tax evaders' identification system: - to hold presentation for Senate panel today

The Federal Board of Revenue will give a practical demonstration of 'Income Tax Evaders Identification System' to the Senate Standing Committee on Finance here on Friday (December 28) to take into confidence parliamentarians about the system to document potential persons on the basis of expenditures made by them.
Sources told Business Recorder here on Thursday that FBR Chairman Ali Arshad Hakim and FBR Senior Member Tax Policy Asrar Raouf would run the newly-developed "Income Tax Evaders Identification System' before the Senate Standing Committee on Finance at the Parliament House. The FBR wanted to show the Senators the working of the system which would document the elite class operating out of the tax net. The FBR will also inform the committee about the methodology adopted by the FBR for expanding the tax base with the help of "Income Tax Evaders Identification System." The FBR will also demonstrate some examples of elite class having extraordinary expenditures but still operating out of the tax net.
The FBR will also inform the committee about the documentation plan which would work without the help of the Tax Registration Enforcement Initiative, 2012 (TREI-2012) and Investment Tax Scheme, 2012 (ITS-2012). In this regard, the data mining would be shared with the help of the 'Income Tax Evaders Identification System.'
Tax authorities will make a presentation on the analysis of the Income Tax Evaders Identification System, based on regression analysis of income and consumption patterns of citizens through data mining techniques and their subsequent matching with FBR's taxpayers' Master Index. As many as 3.1 million potential taxpayers have been identified as a result of the exercise.
The FBR will inform the Senators that the analysis will present a great opportunity to expand the tax base of the country. The proper implementation would ensure huge collection through this initiative. The FBR would provide an opportunity to tax evaders to voluntarily come into the tax net. In case they fail stringent enforcement measures, including blocking of CNICs, would be ensured. Tax authorities further explained that this initiative would be accompanied by a vigorous media campaign for effective communication. In case the potential taxpayers fail to respond, electronically generated notices will be served on them.