A wealth statement, filed alongside the return by individuals required to do so, is where most audit triggers originate — not the return itself.
Why the wealth statement matters
The wealth statement requires a reconciliation between declared income and the change in net assets year over year. An unreconciled increase in wealth relative to declared income is one of the clearest and most common audit triggers.
Common triggers
- Unexplained increase in assets not matched by declared income
- Property or vehicle purchases inconsistent with the declared income history
- Third-party information, including bank transactions and withholding statements, not matching the return
- Selection through FBR’s risk-based parametric selection for audit
If selected for audit
A taxpayer selected for audit is generally required to produce supporting records for the return and wealth statement. Responding within the time given, with organised documentation, materially affects how the audit proceeds.
What to do next
Bring your filed returns and wealth statements for the relevant years, along with records supporting any significant asset acquisition or income declared.