Beware of scams, FTO urges taxpayers

Adviser to Minister of State and Federal Tax Ombudsman (FTO) Dr Waqar Chaudhry warned taxpayers on Sunday not to fall prey to scammers, fake websites, non-existent charities, fictitious emails and dummy tax notices and never respond to such fraudulent tactics.

He issued this caution during an awareness session held on Sunday under the direction of FTO Dr Asif Mahmood Jah.

Dr Waqas emphasised the urgent need to address the escalating prevalence of scams and fraudulent activities targeting taxpayers across Pakistan.

He said the FTO had noticed a disturbing surge in deceptive practices including fraudulent emails, fabricated notices, sham websites, and the creation of non-existent charities, all designed to exploit unsuspecting taxpayers.

“They are adept at mimicking official communication channels, posing a significant threat.”

He said taxpayers receive calls or messages promising hefty tax refunds in exchange for a fee by impersonating tax authorities. He said in 2023 Pakistan’s computer emergency response team reported a 300 per cent increase in tax-related phishing incidents and scammers pose as non-existent charity.

He said fraudsters steal taxpayer’s personal information to file fake tax returns, claiming refunds and leaving the victim with a tax liability. FBR has reported over 1,500 cases of identity theft last year. Dr Waqar said these tactics were to create panic and pressurise victims to make hasty payments.

He said that the crux of the matter was that tax scams posed a considerable challenge in Pakistan but through the partnership of vigilant taxpayers and the FTO, significant progress can be made in protecting taxpayers from falling prey to fraudulent tactics.

He said by staying informed, vigilant and proactive taxpayers could ensure their financial security and maintain the integrity of the tax system.

He stressed the need for the implementation of a comprehensive public advisory campaign by chambers.

This campaign should underscore the imperative for taxpayers to exercise heightened caution and diligence when encountering any communication purportedly from tax authorities, he added.

Underlining the importance of independently verifying the legitimacy of such communications, cross-referencing official contact details, and refraining from divulging sensitive personal or financial information without robust verification measures is crucial, he concluded.