The Supreme Court on Wednesday expressed annoyance over non-compliance of its orders by the Federal Board of Revenue (FBR) regarding investigation into illegal tax refunds.
“The national treasury has lost billions of rupees and yet the FBR seems to be least concerned,” observed Chief Justice of Pakistan Gulzar Ahmed, who was heading the three-member bench hearing the case.
The top court then directed the tax department to complete its investigation and submit a report within two weeks.
FBR Chairman Shabbar Zaidi could not attend the proceedings due to his ill health. Acting Chairperson Nausheen Javaid Amjad appeared on his behalf.
At the outset of the proceedings, the chief justice inquired about the progress made so far in the case, expressing dissatisfaction over non-submission of a report on measures taken to recover money from individuals receiving undue tax refunds through fraud.
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“The [tax] department is not heeding the court orders,” remarks the chief justice, saying “The judges are not sitting here only to listen to stories while the country suffers financially.”
He remarked that the FBR chairperson could not sit inside her home if the lost money belonged to her. “You would be impatient and would not stay relaxing at home for a minute.”
“How come you have no concern for the nation's money?”
“Why has the investigations not been completed within three months’ time given by the court,” inquired the top judge.
The acting chairperson informed the court that the department had initiated an inquiry against persons who were suspected of creating fake companies after the Prime Minister's Office approved a summary in this regard.
The top court then ordered the FBR to complete investigations within 15 days and adjourned the case for two weeks.
The FBR is currently taking action against people suspected of committing tax fraud through ghost companies and fake accounts.
In May last year, the FBR's Directorate General of Broadening of Tax Base had unearthed massive sales and income tax fraud through a network of fake accounts in the sugar and textile sectors.
The racket involved a chain of ghost entities in the sugar and textile sectors who were allegedly involved in fake sales.