SC orders FBR to complete undue tax refunds investigation in 15 days

• The court was informed that FBR Chairman Syed Shabbar Zaidi is on leave due to illness.
• Last year, the FBR's Directorate General of Broadening of Tax Base had unearthed massive sales and income tax fraud through a network of fake accounts in sugar and textile sectors.

The Supreme Court of Pakistan ordered on Wednesday Federal Board of Revenue (FBR) 15 days to complete investigation in undue tax refunds case.

A three-member bench headed by Chief Justice Gulzar Ahmed heard the undue tax refund case. Acting Chairperson FBR Nosheen Javed Amjad appeared in the court and said that the tax collection authority initiated inquiry into tax refund irregularities after the approval from the Prime Minister's Office.

The court was informed that the FBR Chairman Syed Shabbar Zaidi is on leave due to illness.

The Supreme Court expressed its disappointment at the FBR over the delay in investigation of undue tax refund. The Chief Justice questioned Nosheen over why the investigation was not completed in the three-month judicial period.

“Billions of rupees have been looted, government is suffering loss... If you do not care, leave the post,” remarked Chief Justice. The FBR is busy with other tasks, not paying attention to court orders, he added.

The Chief Justice further remarked that if the money went out of your [Nosheen] pocket, you would have not been able to sit at home for a minute. “It won't happen now,” he said.

The FBR is currently taking action against the people suspected of committing tax fraud through ghost companies and fake accounts.

Back in May last year, the FBR's Directorate General of Broadening of Tax Base had unearthed massive sales and income tax fraud through a network of fake accounts in sugar and textile sectors. The racket involved a chain of ghost entities in sugar and textile sectors who were allegedly involved in fake sales.