Using market intelligence and IT: DG I&I IR told to probe seven sectors for revenue boost

The Federal Board of Revenue has directed the Directorate General of Intelligence and Investigation Inland Revenue (IR) to investigate sugar, cement, steel, paper and board, textiles, plastics and pharmaceutical sectors and use market intelligence and IT for improving revenue collection in 2012-13.
Sources told Business Recorder here on Wednesday that the Directorate General of Intelligence and Investigation IR would continue to operate as an independent organisation of the Board. The agency has also sought human resource and logistic support from the FBR to make this agency as one of the best performance intelligence organization. In this regard, a comprehensive plan has been chalked out by Director General I&I IR. The directorate of intelligence IR on Wednesday written a letter to FBR Chairman Ali Arshad Hakeem on the re-structuring of the directorate general of I&I-IR dated March 28.
The letter said that a meeting was recently held with the Chairman at Pral Head Office in Islamabad to discuss the issues related to I&I-IR and its recent performance. Among those present were the Senior Member (IR-Policy), Member (IR-Ops), Member (Strategic Planning) and Director General I&I-IR along with all the Regional Directors I&I-IR.
In this meeting, FBR Chairman shared his vision for the Directorate General of I&I-IR and the ways and means through which the organisation can be converted into a technology-based, goal-oriented and modern intelligence agency. He stated that the department needs a basic re-orientation regarding utilisation of its capabilities and actions undertaken thereby. He emphasised the need to identify major tax fraudsters and assuring that the case is thoroughly probed and the fraud investigation taken to its logical end. The need to make market intelligence reports was also stressed upon and the Directors I&I-IR were directed to undertake sector-wise studies in this regard. The Director General I&I-IR presented the performance of the department especially in the recent crackdown against bogus refund claimants of major players of textile industry, manufacturers/ importers of counterfeit/non-duty paid cigarettes and beverages which was duly appreciated by the Chairman. A thorough discussion followed after which the following decisions/ actions were approved by the Chairman FBR:
Firstly, the I&I-IR is the major enforcement arm of the Board in respect of inland taxes and it needs to be strengthened both with regard to human resources and logistics. Accordingly, the department would be provided 25-30 suitable operational vehicles from the pool of Customs, granted adequate budget and funds; and suitably qualified officers of BS-18 and newly promoted officers in BS-19 would be posted in I&I-IR throughout the country while all Inland Revenue audit officers (IRAOs)/Auditors will be posted out.
Secondly, the I&I-IR will avail all technological apparatus available with the Board and accordingly all Directorates and the DG Secretariat will have full access, including query generation, to all relevant systems including One Customs, PaCCS, WeBOC, CREST and ITMS maintained by Pral.
Thirdly, emphasis was placed upon construction of a complete taxpayer profile using information from his Income Tax & Sales Tax Returns, discreet intelligence of assets and other information. It was stressed that the focus of the department should be upon the fraudster so that a thorough unearthing of his sources of income leading to his arrest should send a strong message, and act as a deterrent, to other players in the market. In this respect while appreciative of the crackdown on non-duty paid cigarettes, FBR Chairman urged upon the officers to extend the investigation to the national and international distribution agents of such cigarettes and even undertake foreign visits, if required.
Fourthly, the present practice of issuance of Red Alerts only should be discouraged and either the accused should be brought to the book or investigation may readily be concluded. Fifthly, the media management of all news relating to the I&I-IR would be managed exclusively by the Board. The department, in consonance with its sensitive job nature, should maintain discretion regarding its actions and public presence.
Sixthly, major sectors of sugar, cement, steel, paper and board, textiles, plastics, pharmaceuticals, etc should be stressed upon by the Regional Directorates and specific market intelligence regarding these sectors should be sent directly to the Chairman.
Seventh, officers of the department need to undergo training with other intelligence agencies especially in the fields of forensic accounting, investigative techniques, audit of financial transactions, computerised fraud detection, fiscal analysis, legal procedures and economic intelligence analysis to update their knowledge and expertise and the responsibility of procurement of tax data of candidates for the upcoming national and provincial assembly elections also speaks of the confidence and trust of Chairman reposed in the department.
Since creation of new posts entails recourse to Finance Division and may take a long time in addition to requirement of new staff and logistics, it is recommended that meanwhile the posts of Deputy/Additional Commissioners Inland Revenue (BS-18/19) available in the respective Regional Tax Offices at above mentioned locations may kindly be re-designated as Deputy/Additional Directors I&I-IR (BS-18/19) to be included in the sanctioned posts of the Regional Directorates I&I-IR holding territorial jurisdiction over the said locations. Appropriate staff such as per the requirement of I&I-IR may also be included therein. Thereafter, suitable officers in BS-18/19 already stationed at the said locations and experienced in the local tax environment may kindly be posted against these re-designated posts so that they may use the logistics and human resources already available with them.
It is assured that as soon as these essential requirements of the department are met, the Officers will undertake every endeavour to fulfil the vision of the Chairman in making this organisation one of the success stories of the FBR, the directorate of intelligence IR added.