NADRA can calculate income, tax payable of non-filers

ISLAMABAD: The National Database and Registration Authority (NADRA) is expected to calculate the income and tax payable of non-filers in the current month based on 14 million financial transaction records provided by the Federal Board of Revenue (FBR).

Sources said Business recorder here Wednesday that NADRA is using artificial intelligence to finalize profiles of potential taxpayers. The exercise is expected to be completed by the end of December. Tax authorities provided 14 million citizen financial transaction records to NADRA to calculate indicative income and tax payable of non-filers using artificial intelligence.

According to the sources, the 14 million financial documents included real estate transactions, vehicle purchases, car registration with provincial excise services, purchase / sale of movable and immovable property, utility bills, overseas travel and other heavy expenses.

NADRA combines this data with its own database and calculates the estimated income of taxpayers and non-filers. Based on the registration of third-party data from the RBF, NADRA would finalize the profiles of these individuals.

Based on third-party RBF data, NADRA would calculate the indicative income and tax payable of any citizen using artificial intelligence, mathematical or statistical modeling, or any other modern device or calculation method.

NADRA empowered to share citizen details with FBR

NADRA is authorized to submit proposals and information to the Council with a view to broadening the tax base; identify in relation to any person, taxpayer or not: (a) income, income, assets, property, liabilities, expenses or transactions which have escaped evaluation or are undervalued or have been evaluated at a low rate, or have been subject to excessive relief or reimbursement or have been misreported or misclassified under a particular income item or otherwise; (b) the value of anything mentioned in subparagraph (a) of clause (ii), if this value differs from the value notified by the Council or the district authorities, as the case may be, or if no such value has been informed of actual or market value; and (iii) enter into a memorandum of understanding with the Council for the secure exchange and use of a person’s information.

As part of the exercise, the cross-referencing of NADRA data with information from the RBF would result in a new taxpayer profile. The updated taxpayer profile or information would be available on the RBF website. Non-filers would receive text messages to verify their profiles on the website using their CNICs, file their returns and pay the tax amount owed.

In the event of non-compliance, strict legal proceedings would be initiated against them. The RBF will give these taxpayers enough time to voluntarily file their tax return in order to avoid criminal prosecution. The RBF will also establish special call centers to make it easier for these citizens to file their tax returns. The RBF will also help these citizens to file their tax returns on time based on NADRA profiles.

Copyright Business Recorder, 2021

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