ISLAMABAD (Kashmir English): The Federal Board of Revenue (FBR) has announced it will audit 7 million income tax returns using artificial intelligence and digital tools, according to sources.
The FBR added that all returns with less than 25 percent tax paid will be chosen for audit purposes. Returns with less paid taxes will all go to a major audit with 8,000 Inland Revenue officers and 4,000 auditors.
The FBR estimates the file size for the fiscal year will reach 8 million.
The audits will examine major corporations, all sectors, and individual taxpayers with automatic and digital systems reviewing discrepancies under AI technologies. The returns will undergo initial filters and formulas with Microsoft Excel, after which they will follow through with AI and digital technologies.
Taxpayers who have paid over 25 percent will follow under automatic removal from the lease audit turnout. The audit will roll out in three phases, which will include commercial and industrial returns, single-owner and registered corporations, and individual and salaried taxpayers.
Those who provide wrong information or whose asset declaration does not match their tax returns will also face action. The FBR is also looking into taking action against taxpayers who declare exaggerated income on social media.
The audit will proceed from eight different aspects to ensure a comprehensive review. As of October 31, 5.9 million tax returns had been filed, resulting in an additional Rs. 9 billion in tax revenue.
