Failure to file observations in case: FTO directs FBR to take disciplinary action – Pakistan

ISLAMABAD: Federal Tax Ombudsman (FTO) Dr Asif Jah has directed the Federal Board of Revenue (FBR) to initiate disciplinary proceedings against the officials responsible for failing to file observations in a case pertaining to the gang that sold uncustomised paid products in connivance with FBR employees, leading to huge loss of revenue

It has been revealed from reliable sources that in a landmark order, the FTO has directed the FBR to direct the Directorate of I&I-Customs and I&I-IR to conduct a detailed inquiry into the issues raised in the complaint after giving the complainant adequate opportunity of being heard and submit their recommendations to the FTO and the FBR.

Following a public interest complaint filed by tax lawyer Waheed Shahzad Butt, the FTO has directed the FBR chairman to conduct an inquiry with the help of the Federal Investigation Agency (FIA) and other agencies and submit a detailed report within a month. However, after two months, the FBR is not ready to accept the truth about blatant violation of law and promoting large-scale tax evasion by allowing sale of goods without customs duty without any check and balance.

When contacted, international human rights activist and constitutional lawyer Muhammad Azhar Siddique, representing the complainant Waheed Butt, said in this correspondence that the complainant is requesting the FTO to intervene to uphold the integrity and status of the FTO and put an end to the huge loss of revenue under the guise of smuggled/underpaid products fraudulently sold to the general public through some microfinance accounts.

Azhar Siddique added that there is a very strange activity of the FBR where some FBR officials are actively working with the said financial institutions. Also, mobile phone SIM cards were being used. All this has been exposed but in vain.

The FTO order states: “A complaint has been filed against various FBR field offices and other private tax fraud gangs, alleging gross violation of the FBR Act, 2007, as no lawful action has been taken against a criminal gang that is openly cheating the national exchequer, selling unduly paid products, clearly with active/passive connivance of some FBR/Customs/IRS tax officials, causing huge losses to the national exchequer (customs duty, income tax, sales tax etc.) and an undercover operation has been completed to unmask the gang of fraudsters.

The complainant requests to file an FIR (Fire Invoice Report) against those responsible for this biggest tax scam so that it can be submitted to the FIA/NAB/HR Cell of the Supreme Court of Pakistan. Appropriate disciplinary and criminal proceedings may be initiated against the office bearers and other respondents who are responsible for defrauding the national exchequer/taxpayers of Pakistan and damaging the tax system of Pakistan by openly selling non-customs-paid products across Pakistan through illegally opened/operated microfinance accounts.

It is surprising that no one from the FBR attended the hearing and no submissions were received on their behalf. There are huge online transactions involved in the present case which need to be thoroughly investigated, the FTO ordered.

Copyright Business Recorder, 2024