ISLAMABAD: The Federal Board of Revenue (FBR) has intensified scrutiny of social media users whose extravagant lifestyles appear inconsistent with their declared income and tax records.
According to reports, the FBR’s newly established Lifestyle Monitoring Cell—comprising 40 investigators—is tracking influencers and individuals on platforms like Instagram, TikTok, and YouTube to determine whether their spending patterns align with their reported earnings. The unit collects screenshots, timestamps, and other digital evidence to prepare cases for possible tax evasion or money-laundering investigations.
Following this initiative, The News reported on October 20 that the intelligence wing of the FBR had identified over 20 suspected cases involving individuals flaunting luxury cars, foreign vacations, and lavish lifestyles online while declaring little or no income. The undeclared assets identified so far exceed Rs. 620 million in value.
In one case, an individual from southern Punjab, allegedly linked to a political family, was found to be using high-end vehicles—including a Lexus LX 570, BMW i7, and Toyota Fortuner Legender—not listed in tax filings. Despite owning superbikes and several cars, the taxpayer declared assets worth only Rs. 31.28 million in 2023 and just one vehicle in 2024, while the FBR estimates concealed assets of around Rs. 180.5 million.
Another case involved a taxpayer who reportedly possessed 19 vehicles—ranging from luxury SUVs and sports cars to motorcycles and ATVs—valued at nearly Rs. 624 million. However, none appeared in the person’s wealth statements from 2020 to 2024. Only a Toyota Yaris worth Rs. 3 million was declared over this period. The file has been forwarded for legal action and recovery.
A third case involved a travel vlogger who took multiple luxury trips across the Middle East and Europe from 2020 to 2025 while declaring minimal income and assets. The pattern raised suspicion of tax evasion, prompting a detailed inquiry.
An FBR official said the Lifestyle Monitoring Cell’s purpose is to reduce the gap between visible wealth and reported income using open-source intelligence. “Their Instagram accounts are a public declaration,” the official noted, adding that investigations can now begin within hours based on digital evidence.
Pakistan remains one of the lowest tax-compliance countries globally, with fewer than 2% of citizens paying income tax despite being under numerous IMF programs. The new monitoring cell aims to expand the tax net by linking online activity with financial data.
The FBR has shared findings from these investigations with regional tax offices for follow-up, recovery, and prosecution where required. Officials said the monitoring will continue with enhanced tools for tracking online content and cross-verifying financial declarations.
Tax experts have cautioned that individuals showcasing luxury lifestyles online while underreporting income risk becoming targets of the monitoring system. They advise ensuring accurate and timely tax filings to avoid potential penalties or legal complications.
