President refuses FBR plea in fake invoices scam worth Rs1.2bn
ISLAMABAD: President Dr. Arif Alvi on Sunday, refused 42 people representing the Federal Board of Revenue (FBR) in cases of false transactions tax invoices meriting over Rs1.2 billion.
The representations had been registered with the president attacking the orders of the Federal Tax Ombudsman (FTO) established in suo motu cases, in which sham sales tax refunds were paid entirely or partly by the FBR officials to fraudulent applicants.
The FBR’s Directorate General Intelligence & Investigation-Inland Revenue discovered the scam and warned the relevant field formations. Still, no response was launched against the offending officials and the false candidates.
The FTO noticed the suo motu cases and addressed the FBR to examine and recognize the officials implicated in the verification of the listed people and take strict actions.
In response, FBR created six fact-finding inquiry committees to handle 130 suo motu cases relating to fraudulent refund claims.
The committees were expected to recognize the problem and the officials involved in each case and establish accountability. They also had to develop a draft charge sheet and report of allegations with the officials and submit it to FBR in 30 days.
President Alvi, after learning the judgments, refused the representations of the FBR and directed the FBR to present a monthly implementation report to the FTO’s administration until action is taken in all of the cases.
He also informed that a chance of show-cause and hearing will be given to all of the officials in case of any departmental action moved against him, to meet the demand of due process and give justice.