Board-in-Council of the Federal Board of Revenue (FBR) on Saturday (today) would finalise policy on the "integrity management" of tax employees by the Directorate General of Intelligence and Investigation. A presentation by the DG intelligence is expected in the meeting on the long-term strategy to eliminate corrupt practices within the tax machinery, bring transparency in the tax departments and deal with the integrity related issues under the revamped FBR.
It is important to mention that the FBR Human Resource Management (HRM) Wing had devised an integrity management policy, which has never been co-ordinated with the DG intelligence. It seems that the DG intelligence and HRM Wing are reluctant to interact on integrity management issues more often.
The policy, devised by FBR former Member HRM, had recommended that tax-payers, general public and third parties such as banking institutions, need to be actively encouraged to report instances of corruption or attempted corruption. Mechanisms are required to be in place to report instances of corruption, such as through hotlines or complaints and compliments system and these mechanisms need to be regularly implemented by all stakeholders.
It strongly recommended that a code of conduct be formulated to adopt standards of professional ethics. The data obtained from audits and investigations needs to be analysed to identify trends, vulnerabilities, and opportunities for improvement: the extent to which major activities carry an inherent risk of corruption (dealing in cash, approving applications, etc). needs to be benchmarked and systems have to be put in place to identify and manage these risks.
Guarantees/commitments should be provided to taxpayers and third parties that any information provided will be treated confidentially and these commitments should be honoured. Mechanisms are also required to be in place to investigate information provided to Revenue from third parties: taxpayers should accept their share of responsibility for maintaining a corruption free environment. There should be a client communication strategy not only to provide information to taxpayers, but also to promote the achievements of Revenue Division.
As per long-term measures, potential weak areas requiring attention, identified are as following: There is need of easier accessibility of seeking advice/rulings with development of a library or database of previous decisions. The basis or criteria upon which tax officials exercise discretionary power needs to be clearly defined and made publicly available and, where appropriate, the reasons for decisions should be conveyed to those affected, it stated.
In cases of non-compliance with Revenue procedures systems are required to determine if the cause is a lack of adequate communication from Revenue, it recommended. It also recommends that suitable controls over procurement procedures and tendering for revenue work need to be developed.
Taxpayers may be consulted to determine their information requirements and preferred media. There is a need for a system for monitoring consistency between different offices, provinces or regions concerning decisions, procedures and information provided, policy added.
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