ISLAMABAD – The Federal Board of Revenue (FBR) has launched a large-scale, AI-assisted audit drive to review over seven million income tax returns for potential irregularities, according to official sources.
Under the new plan, all tax returns reflecting payments below 25 percent will be flagged for scrutiny. The technology-driven audit will be executed with the help of around 8,000 Inland Revenue officers and 4,000 auditors across the country.
Officials estimate that the total number of income tax returns filed during the current fiscal year could reach eight million. The audit will encompass corporate entities, key business sectors, and individual taxpayers, relying on automation and artificial intelligence to detect inconsistencies.
Preliminary data will be filtered using Microsoft Excel tools before being processed through AI systems for deeper analysis. Taxpayers contributing more than 25 percent in taxes will be exempted from the review.
The audit will proceed in three stages — beginning with commercial and industrial filers, followed by sole proprietors and registered companies, and concluding with individuals and salaried persons.
Authorities have warned of strict action against those found submitting false information or underreporting assets. The FBR also intends to examine cases where declared income appears inconsistent with taxpayers’ social media lifestyles.
The comprehensive review, designed to enhance compliance and transparency, will analyze returns from eight different perspectives. As of October 31, over 5.9 million returns had been filed, yielding an additional Rs9 billion in revenue for the national exchequer.
