Action ordered against FBR officials in tax refund scam case

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ISLAMABAD: Federal Tax Ombudsman on Friday directed to initiate action against the Federal Board of Revenue (FBR) officials involved in an illegal tax refund case.

The ombudsman said that the recovery of the tax refund amount should be as speedy as the refund was claimed and acquired by some people.

“The case should be resolved within 45 days,” he directed in a suo moto notice case pertaining to tax refund claimed during the period from 2011 to 2014.

The ombudsman said that despite issuing red alerts over the refunds, the officials proceeded with honoring the tax claims, which later turned out to be fake.

According to sources, the refund claimed during the period has caused a loss of Rs 40 billion to the national exchequer.

“All the claims for the refund generated from a regional office,” they said adding that Chief Commissioner Corporate Regional Tax Office, Karachi was directed to initiate action against the officials.

On Wednesday, the Supreme Court on Wednesday directed the Federal Board of Revenue (FBR) to re-inquire against an officer of the FBR, in illegal tax refund matter.

A three-member bench headed by Chief Justice Gulzar Ahmed heard the case, ordered the FBR to complete its inquiry against DC Sales Tax Abdul Hameed Anjum in the undue refund of taxes.

“How an officer being cleared and another punished with the same offense,” the court questioned.

The Chief Justice of Pakistan expressed his disappointment and asked, “Why you people not telling the truth to the court”.

“Don’t play games, we knew you will produce an old inquiry (before the court)”. “Don’t you catch an officer-involved in misconduct,” the chief justice asked the FBR officer appeared before the court.

The bench dismissed the matter with an order of pre-inquiry against the officer within three months.

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