Directorate of Intelligence and Investigation (DGI&I) FBR, Karachi has decided to conduct inquiries against those 20 officials of the Sales Tax (ST) department who are allegedly involved in a huge ST refund scam involving 102 registered units, Business Recorder learnt Thursday.
It is pertinent to mention that an inquiry against the said registered units had already been initiated on the directives of chairman Federal Board of Revenue in October 2009. The units were issued notices by the department under section 37 of the Sales Tax Act 1990 to verify the veracity of their ST refund claims, which were sanctioned and then released during the period of 2003 to 2008 by the then Collectorate of Sales Tax and Federal Excise (enforcement).
Sources said the department has so far estimated a revenue loss of about Rs 190 million by auditing 26 units out of the 102 units. They also said an anti-department propagation was also started by these officers, allegedly involved in this scam, and added that instead of facilitating the DGI&I to curb the malpractice, these ST officials showed reluctance in providing relevant records to the authority.
They alleged the ST department has lodged two FIRs, having inadequate information, which are aimed at keeping their blue-eyed boys away from legal proceedings. Keeping this in view, the department has sent a letter to the head office, asking them to take appropriate measures in this regard, sources said and added that, the then Collectorate of ST and Federal Excise (enforcement) had sanctioned Rs 1 billion fake refunds that can only be recovered through an effective audit.