- Tarar tells Senate such inquiries fully protected by law and consistent with global anti–money laundering regimes
ISLAMABAD: Law Minister Azam Nazeer Tarar Friday robustly defended the Federal Board of Revenue’s (FBR) legal authority to obtain and communicate bank information to taxpayers, elaborating on that such inquiries were fully protected by law and consistent with global anti–money laundering regimes.
Responding to a calling-attention notice moved by Senator Asad Qasim regarding FBR text messages sent to filers revealing their bank balances and transaction amounts, Tarar said financial scrutiny was an integral part of tax regulation.
“You cannot say FBR should not ask questions,” he asserted. “Banks are legally bound to provide information, and worldwide, tax evasion is now treated as a predicate offence under AML frameworks.”
He said modern compliance mechanisms required transparency between taxpayers and regulators.
“If someone has five crore rupees in their account but has not declared it, and FBR sends a reminder, there should be no objection,” he maintained.
Earlier, Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry confirmed that the FBR had issued messages to both filers and non-filers where discrepancies were detected between declared income and bank data.
He cited Section 165A of the Income Tax Ordinance, which authorizes banks to share deposit information, along with provisions granting FBR access to data from FIA, the State Bank, the National Database and Registration Authority, and utilities.
Dismissing allegations of privacy breaches, he said, “If my account information is sent, it comes only to me. There is no broadcast of anyone’s data.”
Despite the government’s stance that the legal framework was clear, the House later decided to refer the matter to the concerned standing committee for further examination in view of the sensitivities surrounding data protection and taxpayer privacy.
