Key Takeaways
- Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial warns taxpayers against traditional practices.
- AI and digital reforms have transformed the tax system, increasing scrutiny on returns.
- Tax consultants play a crucial role in helping clients understand complex tax laws.
Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue (FBR), has warned taxpayers that traditional practices and informal shortcuts are no longer effective due to significant advancements in the tax system.
Speaking at a dinner hosted by the Businessman Panel Progressive (BMPP), Langrial emphasized the need for businesses and individual taxpayers to consult with their tax consultants before filing income tax returns. He highlighted the importance of seeking lawful and technically sound guidance.
In the past, some taxpayers relied on underreporting income or making inaccurate declarations because they believed there was a low risk of detection due to the FBR’s limited technological capacity and manpower. However, this assumption is no longer valid.
The integration of third-party data has significantly reduced the scope for inaccurate declarations. Additionally, the use of artificial intelligence (AI) and reforms in the tax system have improved administrative processes and strengthened the monitoring capabilities of the FBR.
Langrial stated that the transition towards a faceless tax administration has diminished the influence of personal contacts and recommendations, which were previously perceived to affect tax matters. He advised taxpayers to seek only lawful and technically sound guidance from their tax consultants.
He warned that if taxpayers continue to follow old methods during the current filing season, they may face significant and costly financial consequences. The FBR is committed to a transparent and technology-driven tax system aimed at strengthening revenue collection and improving economic stability.
Langrial also mentioned that various proposals are under consideration to resolve issues of tax refund delays, which aim to strengthen businesses’ cash flows. He urged taxpayers to complete their tax affairs transparently and file returns well before the prescribed deadlines.
Saquib Fayyaz Magoon, Senior Vice President of FPCCI and Chairman BMPP, Khurram Ijaz, General Secretary BMPP, Asif Sakhi, Vice President FPCCI, Shabbir Mansha, Member Supreme Council BMPP, Sham Lal, Chairman Pakistan Ginners Association, and Khushnood Afta Sheikh were present at the event.
However, that assumption is no longer valid as the FBR now has the capability to automatically review every tax return using advanced digital tools.
Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue
He advised the business community to seek only lawful and technically sound guidance from their tax consultants, cautioning against relying on outdated practices or advice that falls outside the legal framework.
Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue
