Islamabad:
The Federal Board of Revenue (FBR) is ramping up measures to identify tax evasion and penalize it in the country. In recent weeks, it is reported that the Lifestyle Monitoring Cell has designated 20 individuals of significant stature, and are suspected of residing well beyond the means of declared income.
Understanding the Lifestyle Monitoring Initiative
The Lifestyle Monitoring Cell forms part of the FBR’s plan to combat tax evasion by using preliminary data scientifically oriented to research analytics. Using modern technology, the department tracks income declared by taxpayers and checks against the lifestyles that are visible. Lifestyle indicators include the ownership of cars, international traveling, properties, bank deposits, and other real estates, and their movements in bank accounts.
FBR officials say that the aim is to ensure compliance with tax obligations and to lessen the phenomenon of trimming among high tax brackets earners, suspected asset concealment, and evasion.
How the Monitoring Works
The FBR taps data from multiple and disparate sources to gauge tax compliance.
These include:
- Registered Properties, Vehicles
- Travel
- Credit Cards and other Banking data
- Utilities and Social Media
- These disparate data allow the FBR to identify Lifestyle Indices that indicate taxpayers true financial capacity and likely discrepancies in annual tax returns.
Why This Matters
Tax evasion remains one of the biggest challenges faced by the FBR tax authorities.
