The Central Board of Revenue (CBR) and National Accountability Bureau (NAB) are not jointly investigating tax fraud/evasion cases detected through the Board's internal audit, inspection intelligence or investigation systems.
Sources told Business Recorder on Friday that the Board had handed over only those mature cases to NAB where all documentary evidence of frauds had been collected and legal proceedings were completed against corrupt tax officials.
For example, the Board handed over mega scams like Bawan Shah Group of companies and Sheikh Noor-Uddin to NAB, where tax authorities are providing the Bureau all necessary documents for completing the investigation.
The Board had decided 'on its own' to hand over duty and tax evasion case under Duty and Tax Remission for Export (DTRE) scheme to NAB for further investigations. In these cases, the Board had approached the NAB for initiating independent recovery proceedings against the tax evaders.
Dispelling the impression created by certain quarters, sources said that the CBR and NAB are not jointly working on different cases unearthed through internal audit and inspection procedures. Prior to this, the CBR had not worked with the NAB in tax evasion cases. The Board has its own mechanism, and powers, to deal with the tax evasion cases and to take action against tax officials involved in the scams, sources said.
The Board follows the procedure for carrying out recovery proceedings in tax fraud cases through adjudication process. In January 2007, around Rs 578 million income tax has been recovered through internal investigations conducted in 24 cases by the Directorate General, Inspection and Internal Audit, Direct Taxes. Similarly, revenue retrieved through internal inspections on the indirect taxes is also satisfactory. These recoveries are purely based on the CBR's own investigations and have nothing to do with the NAB, sources added.
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