IT refunds: Rs 16.98 billion paid by FBR illegally in five cases, PAC informed

Federal Board of Revenue (FBR) in violation of set rules and regulations had paid Rs 16.98 billion on account of income tax refunds in five cases.
Senior officials of the Auditor General of Pakistan (AGP) informed this to a meeting of the subcommittee of the Public Accounts Committee which met here under the chairmanship of Member of National Assembly (MNA) Ayaz Sdaiq. The committee took up FBR related audit paras of 2011-12.
The AGP officials said that during the FBR audit of the abovementioned period, it was revealed that tax collecting authority had illegally paid Rs 11.70 billion in three cases where the claimants had no refunds claims. They further added that Rs 5.28 billion were paid additionally in two other cases on account of income tax refunds.
The committee directed the chairman FBR to resolve audit paras within 30 days by constituting a special wing and asked the FBR officials to cooperate with AGP officials in future; otherwise stern action will be taken against the officials not cooperating and creating hurdles in carrying out audit of the organization.
The committee further directed the FBR to conduct an inquiry of the paying Rs 16.98 billion in five cases within 15 days and submit the report with the panel. The panel showed serious reservations and snubbed FBR officials over not holding departmental accounts committee (DAC) meetings to discuss and review audit paras on departmental level, before sending them to the PAC.
The AGP officials informed the panel that during 2016-17 FBR didn't hold a single DAC meeting despite repeated reminders by the concerned Directed General (DG) of AGP.
Sardar Ayaz Sadiq said that FBR itself is involved in massive financial embezzlements but it is pretending to show the masses that it is vigorously following tax evaders, adding that time has come to make FBR accountable.
Member committee Hina Rabbani Khar said that on many occasions as a result of FBR's incompetence, Pakistanis faced critical situation as the high-ups of the department are not taking serious action against corrupt officials and corrupt practices. She maintained that in major corruption scandals, junior level officials like clerks were made scapegoats while senior officials managed to get impunity, adding that under such a situation holding PAC meetings is just waste of public money and time.
Another member of the committee Mushahid Hussian said that Chairman FBR Shabbar Zaidi is pretending to be so busy in tax collection to ever direct the department to timely conduct DAC meetings.
Briefing the panel, Chairman FBR Shabbar Zaidi said that he has directed the concerned quarters of the FBR to regularly conduct DAC meetings to review and discuss audit objections raised by the AGP.
Ayaz Sadiq said when he was speaker National Assembly his company's audit was conducted for consecutive three years. He directed the chairman FBR to create a special wing in the department to conduct the audit of the FBR's accounts within 30 days and submit the report with the PAC secretariat.