FBR to launch system to monitor tax evasion

Pilot project already implemented at regional office in Lahore.

ISLAMABAD:

In a bid to find tax evaders and raise tax-to-gross domestic product (GDP) ratio, the Federal Board of Revenue (FBR) has decided to introduce a new system called ‘Tracker’.

According to an FBR official, a pilot project of the Tracker system has already been implemented at the Regional Tax Office in Lahore. A presentation on the system was given at the Commissioners Conference, which was presided over by Finance Minister Dr Abdul Hafeez Shaikh, while another presentation will be given to the FBR chairman after which the system will be implemented at all regional offices across the country.

The system software will consist of two phases. In the first phase, whenever a citizen’s computerised national identity card (CNIC) number is entered, the FBR web portal will display the corresponding national tax number (NTN). It will also present information on the amount and source of the citizen’s income, along with tax transaction details and assets he or she possesses.

If a CNIC search yields no NTN result, the software will enter its second phase. The system will then display 14 comprehensive details of the citizen, which includes data on the places where CNIC has been used. The software will then list assets, such as property, cars and other valuables, that the citizen is in possession of, along with bank accounts and transaction details.

As a result, it will be possible to find out details regarding the valuables, cars and property he owns, as well as how many bank accounts he has, along with the balances of each of them.

Tracker, if implemented successfully, will enable tax authorities to spot instances of tax evasion, and consequently, investigate the tax evader’s source of income and the reasons for not possessing an NTN number.

Published in The Express Tribune, March 15^th, 2011.