Looks like taxes are catching up to everyone in Pakistan, including social media pranksters. FBR is cracking down on social media influencers for tax evasion starting with famous Youtube channel ‘P 4 Pakao‘, the brainchild of Nadir Ali.
One of the most famous pranksters in Pakistan, Nadir Ali was sent a notice by the tax authorities claiming he’s due to pay up to Rs.13 million in taxes.
YouTuber Nadir Ali’s ‘P 4 Pakao‘ has over three million subscribers. He gets a million hits on his prank videos daily. Do these millions of views really make millions in money?
‘P 4 Pakao‘ has racked up over 820 million views in total so far, making it one of the largest YouTube channels in Pakistan. This explains why the Federal Board of Revenue (FBR) has been investigating him for concealment of income.
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The Investigation
Dawn reported that sources from Intelligence and Investigation Department say that Nadir Ali is being accused of tax evasion. He had previously been served notices but FBR says he didn’t reply. Nadir Ali denies that.
“We received their notice and responded through in person appearance and then applied for an extension in the time to file a response and our application was approved. We are working now to resolve this through all proper channels,”
They said the case has been concluded and referred to the Chief Commissioner Inland Revenue Tax Office (RTO)-III in Karachi for ‘implementation and recovery of the tax evaded‘.
“He now has the option to appeal the order before the Commissioner Appeals in the RTO office in Karachi.”
After Nadir started ‘P 4 Pakao‘ in 2016, he registered with the income tax department on Oct 13, 2017. The social media influencer filed tax returns for nil income in the years 2016-2017. For the years 2018-2019, he declared his income at 809,762 rupees and Rs 14.44 million rupees, respectively.
The FBR investigation reveals that Nadir Ali’s tax returns do not contain a full record of his income. This led to suspicion of concealment of income. FBR later verified from YouTube that Nadir received an income of Rs 2.186 million in 2017, Rs 28.335 million in 2018 and Rs 46.762 million in 2019.
Then there’s also 10 million rupees of foreign exchange for one year as well.
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The move comes as part of the FBR’s crackdown on social media influencers evading taxes. There will be ‘a series of actions against individuals deriving large income from hosting online content‘ and don’t file taxes.
“People need to realize that incomes generated from online content is taxable and records need to be maintained for five years and declared in their annual return filings.”
Nadir Ali is in real trouble. None us wants to pay tax, but all expect relief, excellent medical and educational facilities
We don’t want to pay tax because the fbr, our leadership haven’t failed to win our trust.
Do you pay your tax??
I am sure you also try to reduce your tax as much as possible
I pay taxes in full for past 3 years.
I am software house owner.
Not everyone is a dickhead like NAdir and other who don’t pay taxes for silly reasons.
Isn’t the Foreign Remittance tax exempt? What about others such as Freelancers who are also raking in Millions every month without paying tax?
Same thoughts bro.
Foreign Remittance tax and income tax are two separate forms of taxes. Foreign remittances exceeding Rs 5 million do not attract any addition to income chargeable to tax, but if the source of foreign remittance is not explainable, such amount will be added to income chargeable to tax.
Even freelancers can not be spared against these tax laws. If someone seems like getting away from it, that is probably he/she isn’t under the FBR’s radar yet.
No bro. Exemption is only for the IT companies.
If you are work while being in Pakistan the income is taxable. IT is an exception.
Foreign remittance is of people working outside of Pakistan and sending money.
So it freelancers aren’t paying others should also not pay? Everyone should be or else should be in jail. No one has a right to demand anything from any govt unless they pay taxes first.
He must pay taxes, he is near to Maulana sahab but doing stealing money.
Foreign income against IT-enabled services are exempt of income tax. That brings a need for review of how much youtube falls into the “service” category as opposed to accounting, writing or software development. I also think his issue is more about misreporting.