The FBR is keeping an eye on the Rs248 million wedding.
Under a new “Lifestyle Monitoring Cell” tasked with searching social media for extravagant spenders, Pakistan’s tax authorities have used drone light displays and diamond sets from a wedding that cost close to a million dollars, according to officials.
This Monday, a group of 40 Federal Board of Revenue (FBR) investigators began searching YouTube, Instagram, and TikTok posts to find influencers, celebrities, real estate agents, and entrepreneurs who have filed disproportionately.
One senior FBR official stated, “It’s open-source — their Instagram accounts are a public declaration,” and that cases involving tax evasion can be opened within a few hours. A request for comment from Reuters was not answered by the FBR.
The monitoring cell was established in response to Pakistan’s persistent failure to reach tax collection targets and to assist in achieving the more challenging objectives outlined in the budget supported by the International Monetary Fund this year.
The nation’s persistent weakness, having one of Asia’s lowest tax-to-GDP ratios, has compelled it to participate in around two dozen IMF programs. The nation’s income tax rate is less than 2%.
According to an internal document seen by Reuters, the unit was formally established this month. Its mandate was to “systematically monitor, scour and analyse data from major social media platforms” and identify individuals who appear wealthy but are either not registered for taxes or declare income that doesn’t match their assets and expenses.
The document states that the cell will create digital profiles of suspects, evaluate the financial support for their lifestyles, and provide data that can be utilized in investigations into money laundering or taxes.
According to the document, it will keep track of all the evidence in one place, including timestamps and screenshots.
Drones, databases, DJs, and diamonds
One wedding under review cost close to Rs248 million ($878,000), according to officials.
According to documents obtained by Reuters, bridal gowns by renowned South Asian designers cost $124,000 and approximately $283,000 were spent on diamond and gold settings.
Drones illuminated the sky as guests arrived through a corridor lined with floral arches, and 400 guests were served multi-course meals.
Top makeup artists, DJs, and traditional qawwali music bands were all part of the festivities, which were choreographed by international consultants and, according to officials, exemplified the kind of excessive expenditure that is currently under attack.
According to officials, the wedding is only one of several cases being investigated. Investigators are also looking into recordings of influencers showing off their affluent lifestyles, flashy cars, and tours of upscale properties.
“Event coordinators, caterers, jewelers, and others are tagged by people themselves. Another official stated, “It makes our work easy,” noting that the two families’ expenses did not correspond with their declared income.
According to officials, the newly established team has already shortlisted many files for further examination.
Although previous attempts to identify wealthy income failed, officials claim that the new emphasis on social media provides better leads and faster methods to identify undeclared riches.