FBR forms seven monitoring teams to investigate taxpayers flaunting lavish lifestyles on social media

The Federal Board of Revenue (FBR) has formed seven Regional Lifestyle Monitoring Teams (RLMTs) to ramp up efforts to investigate taxpayers who display lavish lifestyles on social media but pay minimal taxes, The News reported.

These teams, comprising 36 officers and support staff, will focus on matching individuals’ social media activities with their income tax returns to identify discrepancies. These teams will deploy in major cities such as Karachi, Lahore, Islamabad, Peshawar, Multan, Faisalabad, and Hyderabad.

According to FBR guidelines, the teams will first collect information on high-spending individuals and seek permission from the Director General of the Intelligence and Investigation wing (I&I IRS) in Islamabad before cross-checking the data with filed declarations.

The Lifestyle Monitoring Cell within the FBR has been tasked with scanning social media platforms like Facebook, Instagram, TikTok, X (formerly Twitter), YouTube, and LinkedIn, as well as other open-source intelligence sources. 

This initiative aims to identify individuals, including influencers, celebrities, businesspersons, and professionals, who demonstrate substantial financial means but appear to have inconsistent tax records.

The FBR’s efforts focus on individuals who may not be registered in the tax net, are not listed on the Active Taxpayers List, or exhibit income and spending patterns that seem disproportionate. Once these individuals are identified, FBR will create digital profiles and assess their financial discrepancies.

The investigation could lead to the preparation of Preliminary Information Reports (PIROs) for formal inquiries. If deemed necessary, these reports could prompt further investigations under the Income Tax Ordinance, 2001, the Sales Tax Act, 1990, and other relevant legislation.

FBR’s actions reflect an effort to address tax evasion linked to the rising trend of ostentatious lifestyles and ensure compliance with tax laws in the digital age.