The Federal Board of Revenue has clarified that recent text messages sent to income tax filers regarding bank accounts and property transactions do not amount to a breach of financial privacy.
In a written brief submitted to the Senate Standing Committee on Finance, the tax authority said the messages were issued to improve taxpayer awareness and voluntary compliance through behavior-based reminders.
According to the FBR, the information used in the messages relates only to the individual taxpayer’s own financial profile and is shared exclusively with that person. The authority stressed that no third party is involved in sending or receiving such messages and that all communication is conducted through secure official channels.
The Federal Board of Revenue said it is legally empowered under the Income Tax Ordinance, 2001, to obtain third party data for the purpose of broadening the tax base and strengthening compliance.
Under Section 165A of the ordinance, banking companies are required to provide prescribed information to the FBR, including details of deposits, withdrawals and payments above specified thresholds.
Similarly, Section 175A allows the tax authority real time access to information from designated institutions, including NADRA, FIA, the State Bank of Pakistan, provincial land authorities and utility companies. The FBR noted that such access is subject to strict confidentiality provisions under Section 216 of the law.
The authority said all data obtained from third party sources is stored within secure systems and used solely for risk based analysis and taxpayer facilitation, in line with legal requirements and data protection rules.
According to the brief, the SMS alerts are part of an evidence based approach to inform taxpayers about their own declared and third party reported information, rather than an enforcement action or disclosure to others.
The FBR emphasized that it remains fully aware of citizens’ right to financial privacy and maintains high standards of data security and confidentiality. The tax authority also reaffirmed its commitment to cooperating with parliamentary oversight bodies and to upholding transparency, data protection and respect for taxpayers’ rights.