Reporting Tax Fraud is a Civic Duty. Here’s How to Do It

Tax fraud poses a significant threat to Pakistan’s economy, depriving the government of essential resources needed for public services. It is a serious crime, and every citizen has a role to play in ensuring a fair taxation system. Reporting suspected tax evasion is a crucial civic duty.

Reporting Tax Fraud to the Authorities

If you suspect an individual or company is evading taxes, you can report it directly to the Federal Board of Revenue (FBR) through several channels:

1. Online Complaint: File a report through the FBR’s official website.
2. Helpline: Call the FBR helpline at 111-772-772.
3. In-Person: Visit your nearest FBR office.
4. Written Letter: Send a formal letter detailing the suspected fraud to the FBR.

Tips for Effective Reporting:

• Gather Information: Before reporting, collect as much detail as possible, including the name of the person or company, the specific type of suspected fraud, and an estimate of the amounts involved.
• Be Specific: Clearly describe the fraudulent activity you observed. Vague reports are harder to investigate.
• Provide Evidence: If you have supporting documents like invoices, receipts, or financial records, be prepared to share them.
• Keep Records: Retain a copy of your complaint for your own reference.
• Be Patient: Investigations take time. The FBR will assess your complaint and take appropriate action, which can include imposing fines or pursuing criminal charges if fraud is confirmed.

By reporting tax fraud, you contribute to a fairer system where everyone pays their share, strengthening the nation’s financial health.

Beware of Online Scams – Impersonating FBR

While engaging with the official FBR is vital for reporting fraud, citizens must also be vigilant against criminals who impersonate the FBR online. A common tactic is “phishing,” where scammers send deceptive emails designed to steal your personal and financial information.⁴

What is Email Phishing?

Phishing emails are designed to look like they come from legitimate organizations, such as the FBR, banks, or other trusted companies. Their goal is to trick you into:

• Clicking on malicious links that lead to fake websites.
• Opening attachments containing harmful software (malware).
• Divulging sensitive data like bank account numbers, passwords, or credit card details.

These emails might use your name, mimic official logos and formatting, and create a sense of urgency or threat to pressure you into acting quickly.⁷

Protecting Yourself from Phishing:

• Never Click Links: If you need to visit the FBR website or any other official site, type the address directly into your browser instead of clicking links in emails.
• Ignore Threats: Do not be intimidated by urgent demands or warnings in suspicious emails.
• Don’t Open Attachments: Avoid opening attachments from unknown or untrusted senders.
• Report Suspicious Emails: Forward phishing emails attempting to impersonate the FBR directly to them for investigation. Report malicious websites encountered via phishing links to Google Safe Browse and the National Response Center for Cyber Crime.
• Use Security Software: Keep your computer’s anti-virus and firewall software updated.
• Guard Your Data: Never share bank details, passwords, or other highly sensitive information in response to an email request.

Tax Fraud:

In Pakistan, there are a number of different types of tax fraud that can be committed. Some of the most common types of tax fraud include:

• Underreporting income: This is when a taxpayer fails to report all of their income to the tax authorities.
• Overstating expenses: This is when a taxpayer claims expenses that they are not entitled to.
• Falsely claiming deductions: This is when a taxpayer claims deductions that they are not entitled to.
• Making false statements: This is when a taxpayer makes false statements to the tax authorities in order to reduce their tax liability.
• Using false documents: This is when a taxpayer uses false documents to support their tax claims.

Tax fraud can be a complex and difficult crime to investigate. However, the tax authorities in Pakistan have a number of tools at their disposal to detect and prosecute tax fraud. These tools include:

• Data analytics: The tax authorities can use data analytics to identify patterns of suspicious activity.
• Audits: The tax authorities can conduct audits of taxpayers to verify their tax returns.
• Investigations: The tax authorities can investigate taxpayers who are suspected of tax fraud.

Staying informed and vigilant is key. By understanding how to properly report legitimate tax fraud and how to identify and avoid online phishing scams, you can help protect both the nation’s finances and your own personal information.