They now have the power to examine audit and chartered accountancy firms that are involved in assembling and constructing tax returns.

If disparity or inconsistency is suspected in a taxpayer s return, the inspections will be conducted.

Now, buyers of cars or real estate must demonstrate that the asset s value is less than 130 per cent of their reported income from the prior tax year.  Even if the funds are in the buyer s spouse or child, a formal application has to be sent to the FBR to confirm the funds.

The FBR will have permission to provide commercial banks access to taxpayer data. Banks are required to reconcile their investment and deposit records with their declared revenue and notify the FBR of any discrepancies so that enforcement action can be taken.

Because of the new powers, the FBR s authority has increased, due to which it can now shut down bank accounts that aren’t registered. Before, the FBR only had enough authority to freeze accounts for recovery purposes.

In addition, FBR will have straight access to the offices of audit firms and tax advisors in case of presumed inconsistencies because of the amendment to Section 58C of the Income Tax Ordinance. Anyone who assists in fraud shall be included in the definition of sales tax fraud and be subject to prosecution.The FBR will also use an improved tracking system to tighten supervision of goods movement, especially for sugar.