The Central Board of Revenue (CBR) is compiling a list of income tax officials, who obtained rewards during the last five years, but did not contribute any thing in the Common Pool Fund (CPF).
CBR Tax Policy and Reform Wing has informed the income tax department that the field formation is obtaining rewards without contributing anything in the CPF. The department must provide the details of the rewards sanctioned to the income tax officials during the last five years.
On the other hand, a senior income tax official told this correspondent on Sunday that the Common Pool Fund is being operated only by the customs authorities with the specific contribution for the CPF. But, the income tax officials did not contribute any amount for the CPF, as in case of income tax, the maximum reward is few months' salary, while in specific cases reward is admissible on detecting income tax concealment.
On the income tax side, it is not mandatory for the income tax officials to contribute anything in the CPF. Thus, there is no justification of making contribution in the CPF by the income tax officials. Secondly, there is possibility that the CBR Tax Policy and Reform Wing is not well aware about the legal status and working of the CPF.
The matter is pending before the CBR Member Direct Taxes Salman Nabi to finalise the same in the light of applicable reward rules and submit the report to the treasurer CPF for further action.
The CBR is considering to close CPF and other welfare-related funds to check the misuse of such funds. The Public Accounts Committee (PAC) has also challenged the legal status of CPF and directed the CBR to close this illegal fund used to facilitate the customs officials.
The CBR committee on "uniform reward rules" has proposed to the Board-in-Council that the tax officials should not be given any type of rewards for unearthing income tax concealment. The committee has further recommended that in the new rules there is no room for huge rewards on detection of concealment, which is against the spirit of implementation of reforms.