ISLAMABAD: The Federal Board of Revenue (FBR) has decided to launch an extensive audit operation using artificial intelligence and digital tools to examine over seven million income tax returns filed this fiscal year, officials told Daar News on Wednesday.
According to senior FBR sources, all returns where less than 25 percent tax has been paid will automatically be flagged for audit. These cases will be included in a large-scale digital audit exercise involving around 8,000 Inland Revenue officers and 4,000 auditors across the country.
The total number of income tax returns filed in the current fiscal year is projected to reach eight million, marking one of the highest figures in recent years.
Officials said the AI-powered audit would cover major corporations, industrial and commercial entities, and individual taxpayers. The process will be fully automated, using AI-driven systems to detect inconsistencies and mismatched declarations. Initial screening of returns will be carried out using Microsoft Excel filters and formulas, while advanced AI algorithms will support data verification and analysis.
Taxpayers who have paid more than 25 percent tax of their declared income will be automatically excluded from the audit list, ensuring that the review focuses on potentially underreported cases.
The audit will be conducted in three phases the first targeting commercial and industrial returns, the second focusing on single-owner and registered companies, and the third examining individual and salaried taxpayers.
Officials warned that strict action would be taken against those found to have provided incorrect or misleading information, or whose declared assets fail to match their income tax returns.
In a move aimed at curbing misrepresentation, the FBR also plans to scrutinize taxpayers who display exaggerated lifestyles or income claims on social media, using digital evidence to assess discrepancies.
The initiative marks a significant shift toward data-driven tax enforcement, as the FBR seeks to expand the tax base and enhance transparency through technology-driven governance.