FBR cybersecurity breach results in billions loss to tax fraud

ISLAMABAD: The Federal Tax Ombudsman (FTO) on Tuesday revealed that the cyber security of the Federal Board of Revenue (FBR) had failed, resulting in a tax fraud of Rs 14.66 billion.

The FTO has revealed that taxpayer data was compromised in a cyber-attack, resulting in a tax fraud of Rs 14.66 billion due to failure of the Federal Board of Revenue’s (FBR) cyber security system.

The agency further revealed that cybercriminals took advantage of FBR’s security vulnerabilities to make fraudulent transactions worth Rs 81.43 billion.

These fraudulent transactions resulted in a significant tax loss of Rs 14.66 billion.

Last month, it was reported that the FBR was facing challenges in achieving its monthly targets, with only 43% of the target achieved in the first 18 days of the month.

According to details, the FBR headquarters has issued a letter to the Chief Commissioner of Corporate Regional Tax Office expressing concern over the slow pace of revenue collection.

The letter mentions the need to intensify efforts to achieve the targets, particularly in the first quarter of the financial year.

The FBR has also directed the Corporate Regional Tax Office to focus on recovery of outstanding tax and ensure timely filing of monthly sales tax returns.

Furthermore, the FBR has emphasized the importance of monitoring withholding agents to prevent tax evasion. Overall, the FBR is urging its offices to step up their efforts to meet revenue targets and address challenges in tax collection.