The availability of blank certificates of National Tax Numbers (NTNs) in the Regional Tax Offices (RTOs) may provide a unique opportunity to the unscrupulous elements to submit fraudulent refund claims on fake documents. Tax experts told Business Recorder on Wednesday that presently printing of NTNs is taking place at the level of the field formations.
However, Sales Tax Registration Numbers (STRNs) are printed at the FBR Headquarters and later transmitted to the relevant Chief Commissioner of the RTO for delivery to the concerned applicant. NTNs are printed at RTOs level. They said that there are more chances of fraud in the field formations due to availability of blank NTN/STRNs. Giving rationale behind this apprehension, sources said that the blank certificates are common for both the NTN and STRN and misuse of such blank certificates in both cases is possible. The unscrupulous element has the choice to either print NTN or STRN on the blank certificate in case of fraud.
As the taxpayers' registration certificates for both the income tax and sales tax are common therefore its misuse for any of the purposes can be done as has been detected by Directorate General Intelligence & Investigation of the Federal Board of Revenue (FBR) in case where a gang has been busted which was involved in issuance of fake/flying invoices in the name of bogus companies. In this specific case, the directorate has detected cases where sales tax registration certificates, blank letterhead, CNICs and rent certificates were used for illegally obtaining inadmissible input adjustments and refunds.
There are more apprehensions of misuse of such blank certificates as a large number of such certificates are available in the RTOs and even there is no signature required on the certificates. In cases of NTN or ST certificates, there are no signatures of the competent authority on such certificates. Therefore it is easy to print fake certificates on the blank documents available in the RTOs. The fakeness is to the extent of printed certificates only. If the same are verified with the FBR website or online verification system, then the relevant information about such fake certificates would not be available.
When this scribe contacted an official of FBR on existing practice of printing of NTN, she said that the printing of NTN is taking place in the RTOs, whereas STRNs are printed in the Board and collected from the relevant RTO, official dealing in registration added. FBR is expected to take immediate remedial measures for issuing NTN and ST certificates more securely as a preventive measure.