ISLAMABAD: The Federal Board of Revenue (FBR) has started receiving data from the National Database and Registration Authority (Nadra) on high-net worth individuals for the purpose of broadening the tax base.

It is learnt that the NADRA has shared data including bank accounts, property ownership, and luxury vehicle registrations of 195,000 individuals belonging to the elite class.

The FBR and the Nadra had agreed to expand collaboration and exchange data to determine the actual income of existing taxpayers, register new taxpayers, and finalise tax profiles of non-filers.

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The FBR intended to target these individuals for tax collection, as their lavish lifestyles indicate substantial income levels.

The FBR had constituted a high-level technical committee of Nadra and FBR officials for data integration to broaden the tax base. The high-level technical committee is headed by chairman Nadra. Members of the committee included two senior officials from the Nadra including chief project officer Nadra. Other committee members included chief executive officer (CEO) Pakistan Revenue Automation Limited (PRAL) and two senior FBR officials.

Sources added that there is strong evidence suggesting that these high-income individuals are not fulfilling their tax obligations.

The FBR wanted to utilise all kinds of data for expanding the tax net. The idea is to further strengthen data to register non-filers of income tax returns. The actual income of existing taxpayers would be determined based on Nadra’s data and new people would be registered for expanding the tax net.

Under Section 175B of the Income Tax Ordinance, the Nadra shall, on its own motion or upon application by the board, share its records and any information available or held by it, with the board, for broadening the tax base or carrying out the purposes of the Income Tax Ordinance.

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