ISLAMABAD: The Federal Board of Revenue (FBR) will launch a new web portal for millions of non-filers to have an updated data of financial transactions of citizens with tax profiling by the National Database and Registration Authority (NADRA).

Sources told Business Recorder here on Friday that the FBR will issue messages on the mobile phones of non-filers to check their financial transactions on the said new web portal.

The portal would contain the tax profiling done by the NADRA. When non-filer would put his/her CNIC on the portal, a PIN code would be generated on the registered mobile phone to secure the system.

The pin code would only be generated on the registered mobile phone so that the information be accessed by only the concerned person and it should not be leaked to anyone else. The PIN code would be entered into the system and non-filer would be able to see all kinds of financial transactions and expenditures carried out by him.

In the past, the FBR has launched “Maloomat” (a tax profiling system) on its web portal, containing data of 53 million citizens, giving access to the filers and non-filers to the information about their assets and bank accounts available with the FBR. The new web portal would have an updated profiling of citizens by the NADRA. The NADRA will compute income and tax liability of non-filers during the current month based on 14 million records of financial transactions provided by the FBR.

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The NADRA is using artificial intelligence for finalising the profiles of the potential taxpayers. The exercise is expected to be completed by the end of December. Tax authorities have provided 14 million records of financial transactions of citizens to the NADRA to compute indicative income and tax liability of non-filers by use of artificial intelligence.

According to the sources, the 14 million financial records included property transactions, vehicle purchases, registration of cars with provincial excise departments, buying/selling of movable and immovable properties, utility bills, foreign travels, and other heavy expenditures.

The NADRA is matching this data with its own database and working out the estimated income of the taxpayers and non-filers. On the basis of the FBR’s record of third-party data, the NADRA would finalise the profiles of these persons.

Based on the FBR’s third-party data, the NADRA would compute indicative income and tax liability of any citizen by use of artificial intelligence, mathematical or statistical modelling or any other modern device or calculation method.

The NADRA’s cross matching of data with the FBR’s information would result in a new profile of the taxpayer. The updated profile or information of taxpayers would be available on the FBR’s website. Non-filers would receive SMS to check their profiles at the website using their CNICs and file their returns and pay the due amount of taxes.

This story was first published in Business Recorder on Dec 18, 2021.