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The Federal Board of Revenue (FBR) is launching a whistleblowing system to find tax evasion and to reward successful reporters. The system will allow citizens and firms to submit confidential reports. The FBR will offer high rewards of up to a maximum of Rs 150 million for verified information.
The new system will operate with full confidentiality. Reporting will protect identity and will follow strict privacy rules. The FBR is also procuring professional firms to do research and to identify individuals and businesses that show major tax leakages. These firms will work from the available data supplied by the FBR.
Firms will use a range of records to spot gaps. They will examine asset information, vehicle ownership, and major spending by individuals and by businesses. The research will aim to match visible lifestyle and spending with declared income and reported tax. This approach will help the FBR spot serious mismatches quickly.
The FBR is also considering publishing a tax directory to support the firms. The directory would help researchers cross-check records and focus efforts on the most relevant cases. The combination of professional research and a possible public directory is meant to boost detection ahead of the income tax return submission period.
Several meetings have been held with potential firms, and the response has been strongly positive. The firms indicated willingness to take part because they see both business potential and a national service role. The FBR will finalize procurement and will set clear rules for rewards verification and payment.
The FBR Whistleblowing System will be rolled out under defined procedures and with safeguards to protect legitimate taxpayers.
