FBR responds to Arsalan Adam controversy, alleges fake documents used to block tax recovery

The Federal Board of Revenue (FBR) has issued a detailed public response to allegations made by Qatar-based Pakistani businessman Arsalan Adam, who recently accused the tax authority of illegally withdrawing Rs22.6 million from his bank account.

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The clarification came after MediaBites reported Arsalan Adam’s claims via Waqas Azeem that the FBR had carried out what he described as “daylight robbery” despite his income being earned abroad during 26 years of overseas employment.

In a series of statements shared on X, the FBR spokesperson rejected the allegations and claimed that Arsalan Adam had declared himself a “resident individual” in his own income tax returns for 2017 and 2018, making him fully taxable under Pakistani law.

According to the FBR, Arsalan declared foreign income amounting to Rs23.52 million as exempt income in each year, which allegedly exceeded the legal exemption threshold of Rs5 million.

READ MORE: Overseas Pakistani accuses FBR of ‘daylight robbery’ after Rs22.6 million withdrawn from bank account

The tax authority further stated that multiple notices were issued under Section 122(9), and that the taxpayer was given a “full opportunity of hearing” but allegedly failed to provide documentary evidence to support his claims.

“Resultantly, a lawful tax demand of Rs30 million was raised on the basis of his own declarations and his own failure to provide evidence,” the FBR spokesperson said.

The controversy escalated further after the FBR alleged that Arsalan Adam attempted to stop the recovery process by presenting “fake FBR orders” to his bank through WhatsApp messages.

“These orders were never issued by FBR. They do not exist anywhere in FBR’s IRS system. They carry no barcode. They are forgeries,” the spokesperson claimed.

According to the FBR, Arsalan later filed an appeal before the Commissioner of Appeals on June 24, 2026 — the same day he publicly issued his grievance letter against the tax authority.

The FBR maintained that its recovery action was conducted lawfully and reiterated its commitment to supporting “law-abiding citizens” while operating strictly within legal parameters.

The case has triggered widespread debate among overseas Pakistanis on social media, with many expressing concerns about taxation policies, residency status rules, and investor confidence in Pakistan.

No response from Arsalan Adam regarding the FBR’s latest allegations had been issued at the time of filing this report.