FBR likely to get 660 million rupees in six cases of tax evasion


Federal Board of Revenue (FBR) field trainings on Federal Tax Ombudsman (FTO) intervention created an income tax claim of over Rs 660 million in six mega-cases of tax evasion.

According to the details, FTO, under section 9(1) of the Federal Tax Ombudsman Order, 2000 (FTO Order) has launched its own investigation based on factual information that some of the most significant and innovative of FBR’s own person officers and field trainings are diluted and washed away due to systemic failure to follow through, ineptitude and incompetence, frequent officer transfers and changes masses of jurisdictions.

The FTO Secretariat, through its internal analysis, has also identified that although FBR and its dozens of field formations maintain an organized web portal, a rich data center, comprehensive databases, elaborate operational software and complete and host full-fledged, in-house developed IT support. system such as Pakistan Automation (Pvt) Ltd (PRAL), but neither FBR head office nor its field training maintains computer tracking system, archiving various valuable initiatives as well as undertakings carried out by different organizations, officers, teams or specially from FBR create cells from time to time.

All exhaustive, infallible and computerized management on a module (from predecessors to successors) for such initiatives.

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Any institutionalized internal monitoring system or internal evaluation mechanism to assess whether the objectives envisaged under the flagship RBF projects have been logically pursued and achieved.

Therefore, in most cases, the good work done is likely to be wasted, diluted or compromised with the transfer of individuals, the disbanding of units/cells and the taking over by new managers.

In carrying out the aforementioned internal analysis, the FTO Secretariat focused on 34 potential tax evasion cases in which detailed investigation reports with a case study were prepared and shared by the General Management (DG ), BTB FBR in December 2018, with the relevant field formations of FBR.

Subsequent actions against affected resident companies/international contractors for failing to report true details of their receipts/income and failing to meet their responsibilities as withholding agents in light of this initiative may have increased. the national income considerably. However, in 2019, the management of FBR suddenly dropped this whole BTB diet overnight; dismantling of BTB Islamabad, Lahore and Karachi areas. The office of DG BTB has been relegated to a ceremonial entity assigned as an additional charge. So, in addition to losing efficient organization, the repository of all of the above data/information suddenly died out. This instinctive attitude of the FBR reflects a massive loss for the public treasury.

Upon becoming aware of the OM of this manifest maladministration under section 2(3)(ii) of the FTO Order 2000, the FTO office re-launched the dead process by re-sharing reports of diluted survey.

These new procedures carried out by the FTO office have so far produced quite revealing results such as the income tax claim of more than Rs 660 million has been created in six (06) such cases, resumed by the relevant RBF field formations.

In the majority of cases, prior information disseminated by DG BTB in 2018 was admittedly wasted, shelved, dormant or even lost.

The tax request created so far is mostly default u/s 161/205 and a normal assessment procedure based on shared information may result in the creation of an equally substantial tax request.

All bases triggering instant OM stand established and due to incompetence, incompetence of FBR officials and delay caused in these cases since 2018 resulted in time prescribed tax proceedings in a number of cases for a number of tax years; new blow for the coffers of the State.

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