FTO directs FBR to investigate officials involved in registration of Fake person


ISLAMABAD, Dec 31 (APP): The Federal Tax Ombudsman (FTO) has directed the Chief Commissioner Inland Revenue of the Regional Tax Office-III, FBR Karachi to investigate and identify the officials involved in registration of a fake person and initiate disciplinary action against them.

The recommendation were given on an investigation initiated by the FTO to investigate irregularities committed by the field formations of Federal Board of Revenue (FBR) in processing and sanctioning of bogus sales tax refund during the period from 2011-14 as identified by the Directorate General of Intelligence & Investigation Inland Revenue (I&I-IR), FBR.

The recommendations were given in the case of Messieurs Crescent and Yasdan Traders International, a registered person engaged in the other person service activities, investigations were conducted by I&I-IR, FBR.

It revealed that the above registered person claimed refund for the months of November and December amounting to Rs 10.401 million.

The refund was based on huge input claims of fake and flying invoices of the parties dealing in steel and plastic, including Shaikh Pipe Mills, Chaudhry Steel Re-rolling Mills, Xaviar Company, F A Enterprises and others.

The entire supplies worth millions were also made by the registered person to the unregistered persons and the tax profile showed that during the month of November 2011, supplies were made to Khalid Textile, Waseem Corporation and Shoaib Textile against the input of iron and steel.Thus, dubious refund claims aggregating to Rs10.401 million were made.

The FTO also directed the FBR to identify the officials who failed to complete blacklisting the proceedings in terms of Section 12 of the Rules and were involved in processing of refunds on the basis of fake and flying invoices and take appropriate criminals /disciplinary action against them.

It also asked for initiating appropriate action including criminal proceedings leading to prosecution of registered person and recovery of amount of Rs 46.916 million, swindled from the public exchequer and report compliance within 45 days.

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