FBR starts monitoring social media accounts of wealthy individuals to detect tax evasion

Lahore (Web Desk): The Federal Board of Revenue (FBR) has initiated a new campaign to detect tax evasion by wealthy individuals in Pakistan. As part of this initiative, FBR has started examining the social media accounts of high-income individuals, particularly focusing on Instagram, TikTok, and YouTube posts showcasing extravagant lifestyles.

According to global news agency Reuters, under the newly established "Lifestyle Monitoring Cell," tax authorities are scrutinizing social media posts of influencers, celebrities, real estate agents, and businesspeople. These posts often display lavish parties, expensive jewelry, and luxury vehicles, which will now be cross-referenced with their tax returns to determine if their reported income matches their displayed spending.

A senior FBR official mentioned, "These social media accounts are publicly available; they openly showcase their lifestyle." The official added that the data gathered from these accounts could reveal discrepancies and lead to swift tax evasion investigations.

The new monitoring unit is part of Pakistan's ongoing efforts to achieve the revenue targets set for this year, supported by the International Monetary Fund (IMF). Pakistan, which has one of the lowest tax-to-GDP ratios in Asia, has been grappling with a chronic tax collection problem. Less than 2% of the population pays income tax.

An internal document obtained by Reuters states that this unit will regularly monitor, collect, and analyze data from major social media platforms to identify individuals who display wealth but either fail to register for taxes or misrepresent their income. The unit will also create digital profiles of such individuals, estimate their lifestyle expenses, and compile reports for further tax or money laundering investigations.

Authorities have already started examining high-profile events, including a wedding where nearly 24.8 million PKR (approximately 878,000 USD) was spent. The wedding involved luxury items such as diamond jewelry worth 283,000 USD and bridal outfits costing 124,000 USD, among other lavish expenditures. Drone shows, high-end makeup artists, DJs, and international event planners were all part of the celebration.

Investigators are also looking into luxury vehicles, high-end properties, and influencers who flaunt their extravagant lifestyles on social media. One official noted, "People often tag event managers, jewelers, and caterers in their posts, which makes our job easier."

The newly established unit has already shortlisted several cases for further investigation. Despite previous failed attempts to curb tax evasion among high-income individuals, officials believe that this new approach using social media monitoring will quickly identify undeclared wealth and tax discrepancies.