Failure to submit comments in a case: FTO directs FBR to take disciplinary action

ISLAMABAD: Federal Tax Ombudsman (FTO) Dr Asif Jah has directed the Federal Board of Revenue (FBR) to initiate disciplinary proceedings against the officers responsible for failure to submit comments in a case involving gang selling non-custom paid products in connivance with FBR employees, causing huge loss of revenue

It is reliably learnt that the FTO in a landmark order directed the FBR to direct the Directorate of I&I-Customs and I&I-IR to conduct a detailed investigation on the issues involved in the Complaint after providing proper opportunity of hearing to the Complainant and forward their recommendations to the FTO and FBR.

On the basis of public interest complaint lodged by tax lawyer Waheed Shahzad Butt, the FTO has ordered the Chairman FBR to conduct an investigation with the help of Federal Investigation Agency (FIA) and other agencies and submit a detailed report within one month but after a lapse of two months, the FBR is not ready to accept truth about open violation of law and promoting huge tax evasion by allowing the sale of non-customs paid goods without any check and balance.

When contacted, international human rights activist and constitutional lawyer Muhammad Azhar Siddique, who is representing the complainant Waheed Butt, told this correspondence that the complainant requests the FTO to intervene to uphold the integrity and stature of the FTO to check huge revenue loss under the garb of smuggled/ non-custom paid products fraudulently sold to the general public through some microfinance accounts.

Azhar Siddique further added a very strange activity on the part of FBR with the active connivance of some FBR personnel in collaboration with said financial institutions, as well as, through using Mobile Phone SIM Cards, has been highlighted but all in vain.

FTO order states “Complaint was filed against FBR various Field Offices and other private Tax Fraud Gangs, alleging blunt violation of FBR Act, 2007, for not initiating lawful action against criminal gang involved in cheating the national exchequer openly, selling non-custom paid products, obviously with active/passive connivance of some FBR/Customs/IRS tax employees thereby causing huge loss to the public exchequer (customs duty, income tax, sales tax, etc.) & sting operation completed to unmask the fraudsters’ gang.

Complainant prayed that FIR(s) may kindly be lodged against the mastermind culprits of this biggest fiscal scam so that the same may be referred to FIA/NAB/HR Cell of the Supreme Court of Pakistan, appropriate disciplinary and criminal proceedings may kindly be initiated against the public office holders and other respondents responsible to cheat the national exchequer/taxpayers of Pakistan and damaging the taxation system of Pakistan for openly selling non-custom paid products across Pakistan through illegally opened/maintained microfinance accounts.

It is surprising that neither anybody attended the hearing on behalf of the FBR nor any comments were received on their behalf. There are huge online transactions involved in the instant case which needs to be investigated thoroughly, the FTO ordered.

Copyright Business Recorder, 2024