ISLAMABAD: The Federal Board of Revenue (FBR) has issued directives for registering an FIR against those exporters who claim fake tax refunds, causing a loss to the national exchequer and making it difficult for tax authorities to meet revenue collection targets.
A senior FBR official told The Express Tribune that the board took the action after submission of an internal report which pointed out that the tax authorities had detected fake input adjustment claims and the number of such cases was increasing.
Last year, exporters got Rs100 billion in bogus input adjustments which brought down the total revenue collection from the target. In fiscal 2010-11, FBR collected around Rs1,550 billion in revenue against the target of Rs1,588 billion.
Keeping in view the findings of the report, the official said, the FBR had issued instructions to large taxpayer units, regional tax offices and other field formations across the country to take action and register FIR against those exporters who submitted fake input adjustment claims.
By registering cases against such unscrupulous elements, the amount pocketed fraudulently would not only be recovered, but penalty would also be imposed, he added.
Published in The Express Tribune, August 13th, 2011.
COMMENTS (2)
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This is a long-standing problem. We are sounding as though it is something new that the FBR has discovered.
This is what the R-GST was set to tackle. Funny that the word is not mentioned anymore.
The FBR, being the most corrupt institution in the country, can do all the investigation it wants. Nothing will change.
Good. File cases against unscrupulous elements (fake claimants and the tax officials who issued the refunds).
Rs100 billion in bogus input adjustments which was claimed by business houses and allowed by the Sales Tax officials,auditors and officers of Inland Revenue is not a small amount. This is far ,far bigger than NICL scam.
Let justice be done.