The National Database and Registration Authority (NADRA) is likely to compute non-filers income and tax liability this month using 14 million financial transaction records provided by the Federal Board of Revenue (FBR).

According to sources, property transactions, vehicle purchases, registration of cars with provincial excise offices, buying and selling of movable and immovable properties, utility bills, overseas travels, and other large expenditures were among the 14 million financial data.

The NADRA is cross-referencing this information with its database to calculate the estimated income of taxpayers and non-filers. The NADRA would finalize these people’s profiles based on the FBR’s record of third-party data.

It would use artificial intelligence, mathematical or statistical modeling, or any other modern device or calculating method to compute each citizen’s indicative income and tax liabilities based on the FBR’s third-party data.

Citizens’ Details Are To Be Shared With FBR by NADRA

If the NADRA submitted proposals and information to the Board to widen the tax base. In that case, it is required to identify in relation to any person, whether a taxpayer or otherwise: (a) income, receipts, assets, properties, liabilities, expenditures, or transactions that have escaped assessment or have been under-assessed, have been assessed at a low rate, have been subjected to excessive relief or refund, or have been misstated or misclassified under a particular head of income or otherwise; (if the value of anything mentioned in sub-clause (a) of clause (ii) is different from that notified by the Board, the district authorities, or if none has been notified, the true or market value; and (iii) to enter into a memorandum of understanding with the Board for secure exchange and utilization of a person’s information.

During the exercise, the NADRA would cross-match its data with the FBR’s information to create a new taxpayer profile. FBR’s website will have updated information about taxpayers. Non-filers will receive SMS to check their profiles on the website using their CNIC number, file their returns, and pay their taxes.

Those who fail to comply will be subject to strict legal action. These taxpayers will have ample time to file their income tax returns voluntarily to avoid penalties. In addition, the FBR will establish special Call Centers to assist citizens in filing their income taxes. As a result of the NADRA’s profiles, the FBR will promptly help these citizens file their tax returns.