In Pakistan, the Federal Board of Revenue FBR, formerly known as the Central Board of Revenue, is a federal law enforcement agency that investigates tax crimes, suspicious accumulation of wealth, and money-laundering. It also regulates tax collection. Read on to learn more about FBR and what they do.
Cybercrime
The IT wing of FBR launched an investigation into the cyberattack. A departmental official was named the mastermind. The Finance Minister said that the government is working to restore the IT system and will not allow any more pirated software to be used. However, he refused to elaborate further on the possible impact of the attack.
Cybercrime is a growing concern in Pakistan. While the country has not been directly targeted, the number of attacks on its government websites has increased. These cyberattacks have also led to the development of new malware. Cyberattacks can also spill over into the dark web. The lack of adequate cybersecurity legislation is a serious problem for a country. A strong national cyber policy will protect citizens and the government from being attacked by cybercriminals.
In Pakistan, a major cybercrime case has affected the financial capital of Karachi. The fraud involved fraudulent debit card use and targeted consumers of three private banks. Several customers reported suspicious financial activity, including fraudulent use of their debit cards. This led to the Federal Investigation Agency’s investigation.
Cybercrime has become a growing concern globally. In Pakistan, the number of cyberattacks is increasing as well as the number of attacks against government agencies. However, despite efforts to combat cybercrime, it still has serious consequences for regular Pakistanis. These attacks can lead to financial and security implications.
The FIA is working to investigate a number of recent cyberattacks on banks and the Federal Board of Revenue. It will share its findings when it has completed its investigation. Last year, more than 100,000 complaints were filed with the FIA, mostly relating to sexual harassment, financial fraud, defamation, and child pornography. Nearly a third of complaints came through social media networks. To combat cybercrime, the FIA is taking steps to build up its capabilities.
The FBR has hired a new chief information officer to improve its cyber security and data protection practices. The government has also hired a chief information officer to improve its internal systems. Meanwhile, Customs has pressured FBR to improve data security. It has been reported that consignments stuck at border stations are not being processed properly and couriers cannot access the Active Taxpayers List.
Modus Operandi
The Federal Board of Revenue (FBR) is embarking on a new aggressive drive to register industrial and commercial consumers. Its chairman said the board has been using a persuasive modus operandi to secure registrations. The drive will begin on October 15, 2019. It will be an aggressive campaign targeting industrial and commercial consumers.
In the first phase of the operation, the FBR has included the Federal Excise in its ambit. The Directorate General of Intelligence and Investigation (DGII) has notified the FBR of its functions, which include gathering intelligence on tax matters, establishing links with major data bases, and collecting third party information on financial transactions.
Despite the challenges faced by the FBR, the Government has taken steps to protect its interests. An expert group was formed by General Musharraf to propose changes in the tax system. The group’s recommendations reflected the chief executive’s agenda. The result was the Tax Laws (Amendment) Ordinance, 1999. Unfortunately, the group’s recommendations were short-sighted. While aiming to increase revenue, the group failed to take into account the plight of its staff and officers. This proved counterproductive.
According to the FBR, it has traced thousands of people involved in cash transactions worth trillions of rupees. Many of them are suspected of engaging in tax evasion or money laundering. The FBR is also investigating the activities of International Non-Profit Organisations (INGOs) and Non-Profit Organisations (NPOs) involved in tax evasion and terror financing.
The FBR will be headed by an executive forerunner, the FBR Chairman, who formulates fiscal policy for the country, decides on taxes and duties, and acts as the referent for judicial appeals against tax and customs policies. Furthermore, the FBR chairman will need to operate in harmony with the prime minister and economic and trade minister.
While the PTI government may not have a specific action plan for tax reform, there is ample evidence of the need for reforms. There are independent research studies, and the government can follow them to achieve the goals it seeks.
Cyberattacks
The Federal Board of Revenue has been hit by cyberattacks. The database of the FBR contains details of trillions of rupees of transactions. It holds information on wealth, income, expenditure, and withholding taxes. This information can be used by hackers and spies to gain access to sensitive information. In response, the FBR issued an internal warning that all applications are shut down immediately. But the question remains whether the response was effective enough.
According to the FBR, the attackers hacked the data center and broke the hyper-V software. They have also knocked down all websites of the tax authority. The hackers are also targeting emails related to government job advertisements to gain access to confidential information. The FBR is still trying to identify the exact method of attack.
The Federal Board of Revenue (FBR) is the nation’s nerve centre for taxation and revenue collection. However, the government has done little to protect their systems from hacking. As a result, the government shut down their websites and data centers and appointed a chief information security officer to oversee the matter. The government is also examining a proposal to give NADA access to the FBR’s data center.
A recent report by the National Telecom and Information Technology Security Board states that there are more than seven thousand cyber attacks per month on the FBR’s portals. The volume has increased dramatically in the past few years, and hackers are increasingly sophisticated in their methods and tools. The finance minister has since responded to a question raised by PPP MNA Raza Rabani Khar regarding the issue of protecting taxpayer data.
The FBR says the cyberattacks happened after the organisation’s data center is infiltrated by hackers. As a result, more than half of its virtual computers were taken down. The attack took down the FBR’s official websites for 72 hours and resulted in the loss of data. The FBR provided two accounts of how hackers gained access. One version claimed that the attackers stole passwords and another claimed that the hackers used a Hyper-V link to break in.
FBR’s IT arm, Pakistan Revenue Automation Limited, has issued an advisory notice telling employees to comply with IT security policies. This includes not opening suspicious emails with attachments such as Word, Excel, PowerPoint, or PDF documents. Furthermore, FBR employees are advised to verify the sender’s email address.
