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The Federal Board of Revenue (FBR) has said that the recent SMS alerts sent to income tax filers about their bank accounts and property transactions do not violate any financial privacy. This clarification came after concerns were raised over how such sensitive information was being obtained and shared. According to the authority, the messages sent are meant to guide taxpayers and encourage voluntary compliance and not to expose personal data.
In a written report submitted to the Senate Standing Committee on Finance, the FBR explained that the SMS alerts are part of a behavior-based awareness drive. The authority said the information used in these messages relates only to the concerned taxpayer and is shared solely with that individual.
The FBR added that no third party is involved in sending or receiving the messages. All communication, is carried out through secure and official channels to maintain confidentiality.
Responding to questions about the source of financial data, the tax authority said it is legally empowered under the Income Tax Ordinance, 2001, to obtain third-party information for tax purposes. Under Section 165A, banks are required to share details of deposits, withdrawals, and payments above certain limits with the FBR.
Meanwhile, Section 175A allows the FBR to get information from real-time data from institutions such as NADRA, the State Bank of Pakistan, FIA, provincial land authorities, and utility companies. However, the authority also stressed that all such access is governed by strict secrecy.
The FBR said that data collected from third-party sources is stored in secure systems and used only for risk-based analysis and taxpayer facilitation. The SMS alerts, it added, are informational in nature and do not amount to enforcement action or disclosure to others.
According to the brief, the purpose of these messages is to inform taxpayers about their own declared information and data already reported by institutions, helping them correct discrepancies before formal proceedings begin.
The tax authority reiterated that it recognizes citizens’ right to financial privacy and remains dedicated to maintaining high standards of data protection. It also assured the Senate committee of its continued cooperation with parliamentary monitoring and its commitment to transparency and lawful tax authority.
