ISLAMABAD: The Lifestyle Monitoring Cell of the Federal Board of Revenue (FBR) has identified several taxpayers living extravagantly while declaring negligible income in their annual tax returns. The cell has forwarded detailed reports to FBR headquarters and relevant Regional Tax Offices (RTOs) for formal proceedings against the suspected tax-dodgers.
According to sources, the individuals under scrutiny are seen flaunting high-end assets, luxury vehicles, and international travel on their social media accounts, yet their declared income to the FBR remains disproportionately low.
FinTech CEO Owns 30 Luxury Cars Worth Rs2.74 Billion
Among the flagged cases is the owner of a Lahore-based FinTech company, who reportedly owns 30 latest-model vehicles valued at Rs2.741 billion. His collection includes a Lamborghini Aventador (Yellow) worth Rs300 million, a Rolls Royce Phantom (Silver) worth Rs250 million, another Lamborghini Aventador (Black) valued at Rs300 million, and several other high-end models.
Despite owning these expensive assets, the taxpayer’s earlier income declarations show minimal earnings. The FBR noted large discrepancies between his declared income and his visible wealth.
The taxpayer revised several of his income tax returns between 2019 and 2025. In 2019, he initially declared Rs523,493, later revising it to Rs3.4 million. Similarly, for 2020, he increased his declared income from Rs498,193 to Rs2.9 million. In 2022, his revised return showed Rs3.38 million, while in 2025, he declared Rs181.14 million — a sharp jump from Rs131.4 million in the original filing.
Further scrutiny revealed he had enhanced his business capital from Rs750,000 to Rs11 million, increased gold holdings from 10 to 50 tola, and introduced livestock assets worth Rs10.06 million, despite owning no agricultural land. He also reported a watch collection valued at Rs2.34 million and cash reserves of Rs7.34 million.
FBR investigators concluded that a significant portion of his luxury lifestyle was funded by concealed income not declared in tax filings.
Travel Influencer Declares Minimal Income Despite Global Trips
Another case involves a travel influencer from Lahore, who showcased trips to over 25 countries between 2021 and 2025. Her declared income, however, ranged from Rs442,046 to Rs3.79 million during those years.
In 2021, she visited Thailand and the UAE, declaring an income of Rs442,046. In 2022, she travelled to Turkey, Spain, Bosnia, Estonia, Georgia, Hungary, Latvia, the UK, Saudi Arabia (for Umrah), and Dubai, but declared only Rs636,866. The pattern continued in subsequent years, with multiple international trips but modest declared incomes: Rs542,988 in 2023, Rs2.9 million in 2024, and Rs3.79 million in 2025.
Influencer from Islamabad Also Under Review
A social media influencer and content creator from Islamabad is also being examined for a mismatch between declared income and lifestyle. She travelled to 13 countries, including Thailand, UAE, Turkey, Saudi Arabia, Azerbaijan, Malaysia, the UK, Switzerland, Singapore, and the Maldives, while declaring income between Rs3.5 million and Rs5.49 million.
Her public posts displayed luxury items such as Louis Vuitton and Dior handbags, Gucci apparel, a Rolex watch, and luxury cars including a Toyota Land Cruiser V8. The FBR noted her personal expenses alone — Rs0.81 million in 2022 — did not align with her frequent international travel and visible luxury assets.
FBR Facing Revenue Challenges
This scrutiny comes as the FBR grapples with a revenue shortfall of Rs274 billion during the first four months (July–October) of the current fiscal year, against an annual target of Rs14.13 trillion. Officials say lifestyle audits are part of a broader strategy to curb tax evasion among high-net-worth individuals who display significant wealth without proportionate income declarations.
An FBR source said, “Social media has become a key tool for the Lifestyle Monitoring Cell. Many individuals openly display assets and luxury items online, making it easier to cross-check their declared incomes against visible lifestyles.”
The FBR is expected to intensify its efforts by expanding lifestyle monitoring across major cities including Islamabad, Lahore, and Karachi, targeting individuals showing unexplained wealth in real estate, automobiles, and international travel.